A GOVERNMENT hike in business rates has been slammed by local business leaders.

Herefordshire firms face a five per cent rise under plans unveiled by the Chancellor, Alistair Darling.

Although the increase will be staggered over three years, with firms paying two per cent this year and three per cent thereafter, Gary Woodman, of Hereford and Worcester Chamber of Commerce, accused the Chancellor of creating a tax bombshell.

“To claim the government is helping businesses by staggering the rest is whistling in the wind.”

he said.

“All it is doing, at a time when businesses face several years of difficult trading conditions, is putting off the inevitable.”

Ian Brown, managing director of Whitestone furniture specialist, I & J L Brown Ltd, also slammed the increase.

“Business rates bear no relationship to current company performance or the ability to pay,” he said.