By Thom Kennedy Penrith reporter

Last updated 12:30, Friday, 14 November 2008

Massive rises in business rates and water and gas bills are threatening the future of one of Cumbria’s biggest rugby clubs.

Penrith Rugby Club

Penrith RUFC is facing an eighteen-fold increase in its water bills over the next three years, and a 50 per cent rise in their council rates to £9,000.

Added to an increase in gas bills, the rugby club is facing the possibility of the £5,000 loss it made last year increasing in years to come.

Commercial manager Chris Lilley said: “When the phasing finishes in three years’ time we will end up with an increase from £600 to nearly £11,000 a year. It’s absolutely crazy. The whole viability of the club is under threat.”

The club runs more than 10 teams, with youngsters as young as eight taking part, and runs an adult team in the North 2 East league, competing across the north of England. Overall, the club has an annual turnover approaching £200,000, much of which is reinvested into junior rugby.

Mr Lilley said: “If we have an increase of £15,000 our cash reserves are going to be very quickly eroded. We either start cutting community rugby for the juniors and seniors, or consider selling off some land, which we don’t want to do, it is the wrong part of the downturn.”

The increase in water rates is because service provider United Utilities will bill the club on surface area rather than rateable value. The club is entering a second appeal against the rise, after the first was dismissed before Penrith could submit any evidence.

The Consumer Council for Water is now considering the appeal. Eden Council has also reduced the club’s rate relief from 67 per cent to 50 per cent, representing a rise in rates of £3,000. Meanwhile, increases in gas and electricity rates mean that this year, before the staggered changes in water rates are complete, the club’s utility costs have risen from £17,715 to £32,963.

A council spokesman said: “Sporting organisations that are registered [with Revenue and Customs] as Community Amateur Sports Clubs (CASC) receive 80 per cent mandatory rate relief which is fully funded by central government.”

However, the rugby club is ineligible for CASC status because of the expenses it pays its players.