THE 3,500 businesses across the Hambleton district are being given the chance to defer payment on their business rates.

Through a government initiative they will be able to defer 60 per cent of the increase in their rate bills – paying it back during the following two years.

However they must keep paying their current liability until offered the chance of deferral.

The district council is writing to all businesses this month to tell them of the proposed changes – and once the regulations have been adopted this summer further letters will be issued offering the deferral option.

Executive director Phil Morton said: "The Government believe this will provide a smoother profile of business rate payments over the next three years offering businesses the chance to pay a lower increase this year and make up the payments over the next two years.

"A business seeing a £600 increase in rates this year can defer £360 of that to future years which it is hoped will help them through the current difficult economic climate."

Costs associated with the change will be funded by central government and will not affect local authority grant allocations.