IT IS not just the abolition of empty rates relief which has hard-pressed businesses feeling hot under the collar.

A quadruple whammy of legislation and sheer bad luck has businesses facing a massive hike in rates bills.

The British Retail Consortium estimates a 30% increase over the next three years, which could kill off over 500 retail businesses and nearly 20,000 jobs.

So why is this? The Government’s refusal to make a complete U-turn on empty rates relief is part of the story, but only part.

The exemption of properties with a rateable value below £15,000 for the 2009/10 financial year will help some, but the Pre-Budget Report made it clear that this is strictly a one-off, and that the present Government is firmly wedded to the principle that rates should be paid on empty properties.

All properties subject to business rates, whether empty or occupied, will also be feeling the brunt of the annual April increase. Without any change in legislation or policy, business rates have just gone up by a staggering 5%. How can this be, when the increase is supposed to be inflationary and we are now in deflation?

Well, the annual increase is based on inflation the previous September, which was a 17-year high. Nothing sinister, just sheer bad timing.

The Government is allowing businesses to spread part of the increase over the following two years, but ultimately the money will still have to paid.

And, if all that isn’t enough, rateable values are reviewed every five years and the next revaluation will take effect in April, 2010, but based on values in April, 2008.

In the current market, only a fool would predict with any confidence, what values in April, 2010, are likely to be.

But it looks increasingly unlikely that they will exceed April, 2008, values, in which case the 2010 revaluation could also lead to a harsh outcome for businesses.

The final sting in the tail is the Business Rate Supplements Bill, currently progressing through Parliament, which will give local authorities the power, from April 2010, to raise an additional 2p in the pound to pay for local projects.

It is therefore quite understandable that business ratepayers are less than happy.

After all, in case you’ve forgotten, they also have a recession to deal with.