A PLAYGROUP could fold after its rent increased by nearly 400 per cent.

Ramsbottom Pre-School Playgroup is a registered charity which has been caring for children for the past 30 years.

But now, two weeks before the group is due to break for the summer, playgroup leaders are unsure whether it will re-open in September after being told their rent has gone up five-fold.

Bury Council, however, insists the increase is to bring the rent in line "with the rest of the borough".

Mrs Kath Latimore, playgroup leader, said: "The rent has gone up from £27 to £132 a week. We were on a concessionary rent for the use of Ramsbottom Youth Club where we are based, which we are so grateful for.

"But we simply cannot afford the new rate. The council says it does not want us to close but with this rate, we may have no choice."

The playgroup caters for 24 children aged two to five, and is expecting an influx of youngsters in September. But in May, Mrs Latimore received a letter stating the rent had gone up and would be backdated to April, leaving the non profit-making playgroup £1,000 in arrears.

Mrs Latimore said: "We charge parents just £4 a morning, out of which we have to pay the wages of four staff, including holiday pay, which sometimes staff have had to do without because we have not always got the money. There is no way we can increase the fees to such an extent to cover the rent.

"As far as I know, the building will just be left empty if the playgroup is forced to close. It just seems so unfair to put up the rent by so much and backdating it without giving us any warning."

A council spokesman said the playgroup has enjoyed a rent discount since 1999 which was not offered to other similar groups.

He said: "In raising the charge, all we have done is bring it in line with the rest of the borough. We do not want to lose the playgroup and we are asking the playgroup leader to work with our Early Years Team to see how best to manage the rise in session charges.

He added: "The team feels that the new charge is not unreasonable but staff are keen to meet as soon as possible with the playgroup leader and for her to take advantage of the support and advice we can give.

"We have also apologised to her for not discussing this rise with her face to face. We did try to speak to everyone who has had letters about fees but we couldn't get out to this playgroup at the time. "