Small resellers could face a hike in business rates from next month as they are revaluated in line with the usual five year review.
The fear raised by the Forum of Private Business (FPB), is the rates which last for five years, will be based on pre-recession rent prices from April 2008 which are well off the current market conditions.
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According to the FPB just shy of 80% of small businesses expect their rates to go up with office-based firms braced for a 2% rise and as a revenue generating exercise for the government it will be short by several million.
"While that may not be entirely accurate, small businesses are already under a great deal of pressure to pay their business rate bills and most do not see the corresponding value in local authority services," said the FPB's Policy Representative, Matt Goodman.
Part of the problem for a government that is trying to bring as much money as possible into the coffers to avoid making painful cuts to public services is that it faces the prospect of losing millions as part of the revaluation process and is being urged to offer transitional relief to companies.
"It is extremely important that the Government provides an appropriate and fair system of transitional rate relief for small businesses who will see an increase in their rateable value from 2010," he added.