A LANDLORD fears for his future after his business rates were tripled – because he built an extension to meet customer demand.

Ashley Winsbury-Cutts, who runs the Dolphin, in Stisted, faces making two of his 18 employees redundant after the valuation office at Inland Revenue and Customs raised his base rate from £541 a month to £2,000.

To make matters worse, it has been backdated to December, when he opened the restaurant extension, so he faces a £5,000 bill for next month alone.

Mr Winsbury-Cutts, who, with wife Aimee, has run the pub for three years and has turned it into a thriving business, which led to them building an extension which can seat an extra 22 customers.

But Mr Winsbury-Cutts says his success is now going to cost him.

He said: “I’m on the verge of going bust. Other pubs are twice the size of mine and their business rates are half of mine.”

Business rates for pubs are based on their turnover, with the Dolphin’s amounting to £7,000 a week.

There are weekly staffing costs of £3,000, weekly rent of £800, VAT, and costs for utilities, such as electricity, gas and other bills.

Mr Winsbury-Cutts says it is the latest in a string of events to hit his pub’s custom, such as the smoking ban, increase on alcohol duty and the recession.

Phil Gillen, Inland Revenue valuation office spokesman, said business rates are set according to the likely rental value of the property.

These are the same whether the property is a shop, factory or pub.

He said: “In the case of a public house, trading potential influences rental value and therefore the Valuation Office Agency reflects this in arriving at rating assessments.

“Consideration is given to all the facilities and features likely to influence trading potential and rental values, positively or negatively.

“Where a restaurant facility has been extended in an existing public house, the VOA will reassess its trading potential and therefore its rental value at the set valuation date.”