MARKET tenants in Burnley have gone to war with their council landlords by withholding service charges worth thousands of pounds a week.

They say they have been driven to direct action because the council has gone back on its promise of compensation for disruption caused to stallholders during major improvements in the Market Square three years ago.

It was also revealed today that indoor market traders are in deep dispute with their landlords over a new rent deal.

Tenants' Association secretary Paddy Brady said stallholders won a major breakthrough in October when the council for the first time accepted compensation should be paid - although its initial £300-a-tenant offer had been rejected as derisory.

"The council promised to come back with a revised and substantial offer months ago, but failed to do so, leaving us with no choice but to take action."

Florist Mr Brady said the association was looking for the kind of compensation package paid to outdoor market traders - and that could total £250,000.

The last time traders withheld service charges - a demand equal to the amount paid in weekly rents - followed a proposed 20 per cent rent hike four years ago.

At its peak, the money withheld amounted to more than a quarter of a million pounds as the council and tenants battled out the rent issue at county court.

Mr Brady said stallholders had also rejected the council's proposed three year rent deal - with rents frozen for 12 months and an eight per cent rise over the following two years.

"We believe rents should be frozen for a year and then reviewed.

"The demolition of the car stack and the turmoil caused by new building work in Curzon Street will seriously affect the viability of the market. "We cannot accept being tied down to an eight per cent rent rise in such a period of uncertainty," he added.

No council markets official was available for comment but public protection committee chairman, whose remit covers the market hall, said talks were planned with Mr Brady next week.

He declined to comment on the long-running compensation row, but said he believed the rent offer put forward by the council was good deal for traders.

"Ther ehas been no rent rise for at least two years and to offer a freeze for another year followed by eight per cent over the following two, is, I believe, very fair."

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