A ‘GREAT relief’ is how the co-owner of Rugby’s Willy Wonka-style High Street attraction greeted the news that it has had its ‘unfair’ business rates slashed by £59,000.
Yum Yum World was due to close indefinitely after owners revealed that its rateable value was £139,000, or £70 per square metre – double the rate charged to the Poundland store on the same street.
But following an appeal which began when the business opened over a year ago, the government’s Valuation Office Agency (VOA) has agreed Yum Yum was being overcharged and cut the rates back to £80,000.
Co-owner Simon Hawker told The Observer business rates were reduced in Rugby town centre while the Yum Yum building – formerly Marks and Spencer – was vacant, meaning no application was made to cut its rates.
He said: “When we purchased the building, we were told that the rateable value was about half of what we ended up paying. And to get this money back we had to go through a ‘check, challenge and appeal’ situation.
“We were doing that for a year, but were getting nowhere – so we said we’ll close the building down and reopen it when the VOA has sorted it out because we were sick of it.”
But after gaining the support of MP Mark Pawsey and the local press, the matter was soon resolved.
“The dispute is over before we could even close down, which is a bit of a surprise,” he said.
“It’s a great relief, and it means we know what our overhead is – which is what we budgeted for when we took the building on.”
While the business will still close for two weeks for cleaning and maintenance, its long-term future is now secure.
And with a year of overpayments being refunded, plans are in place to expand the business – which features a soft play area and a sweet shop – by adding a laser tag arena on the first floor next year.
“It basically means we can provide a better facility for the people of Rugby,” Simon added.
“We’d like to thank Mark Pawsey, the papers, and the people of Rugby because we would not have got here without their support.”
Mr Pawsey said he was very pleased to be able to help.
“This is great news for the town centre,” he said. “Yum Yum World is a real asset to Rugby, and I know that many families will be delighted that it will be remaining in the town.”
Aftab Gaffar, managing director of town centre management organisation Rugby First, said he was delighted.
He added: “Rugby First has been campaigning for the business rate system to be reviewed. Many businesses find themselves paying more in rates than rent, which cannot be right.
“I would continue to strongly encourage businesses that feel their business rates are high to appeal directly or get professional advice. Many town centre businesses have already done this based on a reduction in footfall, Marks & Spencer closing down and the re-opening of Elliot’s Field Shopping Park, all of which have had a significant impact on the town centre.”
