HASLEMERE traders could be hard hit by changes to business rates in April, calculated to take into account the rise in property prices since 2008.

Conservative MPs in the South East have pressed the Chancellor Philip Hammond to act to prevent a “cliff edge increase” in his budget in March.

Haslemere and District Chamber of Trade and Commerce president David Goddin said: “Any increase in business rates is an unwelcome blow to the bottom line.

“The only real alternatives for business are to increase sales or reduce other costs. Neither is easy in today’s challenging and highly competitive marketplace. The authorities need to remember raising business rates could force more traders to shut up shop, permanently.

“Vacant shops don’t generate business rates, so councils should take care not to shoot themselves in the foot. Times have changed dramatically, with online shopping posing a massive challenge to traditional retailers.

“Many are struggling to survive – despite valiant efforts to change their business models. Ironically, the business rates increase will enable councils to maintain certain service levels that we all now expect.”

The Herald reported last week that Surrey County Council could be set to swell its coffers by “more than £180 million”, should the Department for Communities and Local Government grant it a place on the 2018/19 pilot scheme – eclipsing this year’s estimated £32million budget shortfall.

Currently the council takes a 10 per cent share of all commercial property tax collected in the county, while district and borough authorities take 40 per cent and central Government 50 per cent.

Under the new scheme, Whitehall would lose its cut entirely, with county and borough/district councils such as Waverley instead sharing the bill 50/50.

Surrey’s leader David Hodge recently endorsed the scheme as a possible solution to covering the county council’s spiralling adult social care costs, and this week Waverley also came out in support of the proposed rate reforms.

But the borough council has also cautioned the financial benefits of the scheme will likely be checked by tariffs imposed by central Government, as well as the incorporation of existing grants within the final settlement.

A spokesman said: “Waverley Borough Council would support Surrey County Council becoming a pilot for the Government’s new business rate funding system as it should enable them to influence the approach and represent the particular needs of Surrey in the detailed mechanism.

“[But] while the percentage shares referred to are accurate in theory, they do not reflect the actual cash retained by individual authorities as the Government applies an adjustment called a ‘tariff’ to ensure that each council only ends up with what the Government has assessed as being its need.

“Waverley currently collects approximately £36million in business rates each year but only retains £2million; which is six per cent. 

“The Government has confirmed this adjustment will still feature in its new system, therefore, Waverley is not currently projecting any additional retained income from business rates under the new arrangements.

“We eagerly await more detail from the Government over the coming year.”