A £1 MILLION fund is to be drawn up to help firms hit with large rises in business rates.

Brighton and Hove City Council is working on plans for a discretionary fund to help businesses likely to be most affected by the increase coming into force next month.

The news comes as Green councillors call for greater support and a citywide plan to help companies who will find it hard to make ends meet in the face of potential five-fold rate increases.

About one in five firms will see rises of more than ten per cent with the city’s 189 pubs facing a combined rise of almost £1.5 million.

Conservative group leader Geoffrey Theobald said there had been “innocent misrepresentation” over the business rate issue with Brighton and Hove companies seeing an average 2.5 per cent drop.

Green Convenor Phélim MacCafferty called on the council to develop a plan across the city to protect businesses affected by “deeply worrying” rate increases.

He urged the city council to write to the Treasury opposing the move and demanding greater rate relief and support for the city’s smaller businesses,

Councillor MacCafferty said some firms could struggle to stay open without more support.

He said: “I am deeply concerned that the proposed changes to business rates will see many of our small businesses battling to make ends meet.

“The rate relief currently proposed by the Government does not go far enough, particularly for Brighton and Hove, and our businesses need assurances in these uncertain times.”

Councillor Les Hamilton, council lead for finance, said in Brighton and Hove 57 per cent of firms would have no increase or a reduction in their bill.

A further seven per cent would have a rise of up to five per cent, just under one in five would have a rise between five and ten per cent and the remaining 18 per cent would see their bills go up by at least ten per cent.

He said there would be some transition protection with many pubs entitled to a discount and small businesses such as guesthouses also likely to receive assistance.

A £300 million discretionary fund from the Government will be shared out between councils.

Support announced in the spring budget has come too late for firms getting bills on the doormats now but Cllr Hamilton said once the Government had passed legislation and software companies built in the updates, firms would be rebilled.

He said: “We remain concerned about the effect on local businesses of the revaluation and we will be drawing up plans for a new discretionary scheme at the earliest opportunity.”