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

Richie Ellmyer, president of Farnham Chamber of Commerce, said: “We first informed our members about the business rates revaluation in November and provided information about how businesses can check, challenge and appeal the process. 

“Many businesses are currently facing a great deal of financial uncertainty caused by having to shoulder the increased financial burden of workplace pensions, the imminent increase in the National Living Wage and the pending apprenticeship levy.

“I fear that the potential increase in business rates may well lead to some businesses having to make difficult decisions about their future.

“Going forward, we welcome any certainty that can be offered to businesses during these difficult times.” 

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 its estimated £32 million budget shortfall this year.

Currently the county 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.

However, the borough council has also cautioned that 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 Waverley 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.

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

“The Government has confirmed that 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.”