Award winning fish and chip shop closes

Ian and Adele Shaw owners of The Best Cod in Town on Yorkshire Street with apprentice Tom Bray

Rochdale’s award winning fish and chip shop, The Best Cod in Town on Yorkshire Street, will close its doors for good tomorrow (Saturday 20 September).

Sky-high business rates (see analysis below) have pushed the business over the edge and have resulted in  he closure.

Simon Danczuk MP said: “The owner has put his heart and soul into this business and he has a really loyal customer base but he has to pay twice the amount in business rates than his rent. That’s how out of touch the tax has got.

"Ministers need to look at cases like this because their refusal to address tax inequalities is forcing people out of business.”

He added that the Government had cancelled their revaluation because it would have seen an increase in business rates for traders in areas like London where property prices have gone up.

“This is just for electoral purposes, it’s really cynical,” he said. “The reality is that Rochdale has to subsidise Regent Street as a result.”

Business Rates

At a Rateable Value (RV) of £39,750, the multiplier of 47.1p gives annual rates of £18,722.25 to be paid by the chip shop owner.

Rateable Value of £39,750 yet the business is just paying £10,000 rent. Therefore, this year from April 2013 to April 2014, business rates are £18,722.25, nearly double the rent.

At a RV of £39,750 rates payable in 2015/16 will be about £19,850.

If the government postponed rates revaluation had gone ahead and the assessment fell to £10,000 (the rent on 1 April 2013) then even if UBR had to increase to 56.9p, as the Government forecasted, the amount due would be £5,690.

Therefore, the postponement of the revaluation for this shop will cost whoever occupies it next £14,160.