One of Manchester’s best-loved live venues faces being forced to close within weeks – with its owner blaming a ‘disgraceful’ rates rise.
Iguana Bar in Chorlton – which has become a music and comedy institution since opening in 1999 – was slapped with a £7,200 increase to its annual business rates.
Now owner Pascal Paschalis, who employs 10 staff at the Manchester Road bar, says the business has also been squeezed by a slump in trade because of the economic downturn.
It would be a sad end for the popular venue, which has hosted hundreds of musicians at its long running open mic night – as well as comedians Alan Carr, Jason Manford, Justin Moorhouse and Roy Walker.
Mr Paschalis, 55, appealed to the government’s Valuation Office Agency – which sets business rates according to a property’s value – after his monthly charge went up by £600 to £1,800, but his plea was rejected.
He then wrote complaining that similar venues on nearby Wilbraham Road and Barlow Moor Road paid much lower business rates – but has still not received a response.
Mr Paschalis, who moved to Chorlton in 1982, said: "It’s disgraceful. It’s at close to breaking point now.
"I am thinking of jacking it all in because the place has made a loss for the past couple of months.
"I am working 100-hour weeks in place of perhaps two or three staff and it’s doing my health no good at all."
The owners of nearby Manchester Road businesses, including bar Pi, toy shop Monkey Puzzle and ice cream parlour Oasis – met Manchester council officials last month to complain about the discrepancy in business rates. A town hall spokesman stressed that it only collected – and did not set – business rates.
He added that it tried to be flexible with business owners who were struggling to pay.
Chorlton councillor Victor Chamberlain, who attended the meeting, said the town hall had told him that the issue of rates for independent businesses was been reviewed.
A spokeswoman for the VOA said she could not discuss individual cases.
She said: "We have recently handled appeals for a number of pubs in Manchester and will schedule others for later in the year. Where there is evidence of hardship, we will seek to prioritise these appeals."
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Government needs to be flexible on setting Business rates to encourage growlth
It's strange how when the Metro (finally) arrives the rates go up....
Let's see...Metro arrives...rates go up!
It's horrible in there anyway, much better bars are available in Chrolton.
You're not alone Pascal. All of us here in Chorlton have been hit by this scandal and the government have the cheek to say they're concerned with the health of the High Street. They recently appointed "celebrity" Queen of Shops, Mary Portas to make a study of how the High Street can be more successful. They don't need any Queen of Shops to tell them simply to CUT business rates not increase them beyond the realms of viability.
In the case of licensed premises the valuers have now employed an old system called "fair and sustainable trade" whereby they look at your turnover (not profit) and just decide a random amount they think you should be able to afford. Well listen up, we can't afford it, it ain't fair and it ain't sustainable!
I think the great people of Chorlton may soon be losing the bars that have made the place such a buzzing and vibrant place only to be replaced by more Tescos - government and councils seem to love them.
"monthly charge went up by £600 to £1,800" That is an absolute disgrace. What is happening on the streets of Greece will be happening on the streets of the UK if so called Government doesn't stop trying to take our every last penny.
Join the line at the dole office brilliant , the country should turn every bar in to a mosque, then the traiters wqill be happy. not.
I don't understand all the economic theory in the comments, but it seems like tosh to me to say that high rates help businesses. As a consumer of 'beverages', I have seen prices rise by 50% in the last 2 years and the result is I just don't go out as much. It seems to me that small businesses are being squeezed everywhere - vehicle insurance has doubled in 2 years, not to mention fuel, and only the big concerns will be left. Welcome to Tescopoly and Clone Town
HIgher rates favour big companies who can turn over a bigger profit and charity shops who have favourable rents. Hence the state of Manchester City Centre and most others across the country where small independent businesses are hard to find. The number of charity shops already in Chorlton is an indicator of the way things are going. Every small business that goes under means another 2 or 3 people on the dole so closing down small businesses helps no-one except for big business and let's face it, they have enough money anyway...
Whilst you are all having a pointless rant on here, spare a thought for the Man who has built up a fantastic business, employing people. All of whom will now end up with no job because of the rates imposed by MCC. These rates are truely unjust, and no one could survive with such a hike. If he were to accept these rises, then it would be us the customer who would feel the impact with prices rising in the bar, of which I feel the owner is aware this would not work due to the recession we are in. So much for the Government !!! Well here are some more people for your insulting job seakers allowance !!!
So farwell Iguana, I for one will be sorry to see you go. I have enjoyed many many nights with your entertainment and your lovely surroundings.....I might add with No Chav's or Fights !!!
Keep fighting, you have worked far to hard over the last 12 years to throw in the towel. You are a respected publican and businessman in the area and it would be a shame to see you go.