A restaurant owner has had to lay off three of his staff because of a £9,000 hike in business rates.

Saleem Akhtar at the flagship Jinnah restaurant. He says the increase in business rates has cost jobs

Saleem Akhtar's flagship restaurant, Jinnah, sited on the A64 towards Malton, opened last year.

But the businessman, who has two other outlets in the area, said the increase in rates from £2,139 to £11,025 is eating into profits.

Mr Akhtar, owner of a restaurant in Micklegate, York, and a takeaway at Haxby, said: "We are struggling to pay the rise, and as a result have had to lay off a number of our staff. However, if business picks up in the summer we may take them back."

He explained: "We bought the former Flamingo Land Inn because it was off the beaten track and I was told by the previous owner and Ryedale District Council the rates would be cheaper than in the city.

"Originally, I was quoted around £2,000, because it was already a restaurant and there was to be no change of use. I paid £175,000 for the premises, and the only improvement carried out so far is a conservatory, which the council believes has now boosted the value of the property to £500,000.

"This increase is madness seeing I'm stuck in the middle of nowhere. When I was in York the rates were £25,000, but I appealed and got them reduced to £12,000.

"Regarding the 90-seater restaurant - which has 13 employees - Ryedale District Council proposed the £9,336.12 paid in two instalments, on December 31 and January 31. But we complained about paying £4.500 each month, and they have said we can pay £2,000 in January, February and March - with the £3,000 balance added to next year's bill."

Ryedale District Council's taxation manager Clive Key said: "The valuation office at York have reassessed the property, but Mr Akhtar has 28 days in which to appeal.

"When improvements were made to the premises the valuation office - part of the Inland Revenue division - go out to reassess the property, taking into account alterations, changes, extensions, etc. A new valuation is then issued.

"The respective authority is then notified - in this case Ryedale - of the new rateable value, and the effective date when alterations took place. The owner is then re-billed with the new rateable value.

"However, Mr Akhtar can appeal to the valuations office, and if unsuccessful, can take it to a lands tribunal appeal."

Meanwhile, Mr Akhtar has approached chartered surveyors Sanderson Townend & Gilbert, who are going to appeal against the valuation.

"But in the meantime we still have to pay the rates," he said, "and ST&G have told us it is highly unlikely any rate review, even on appeal, will not be available until next year."

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