BUSINESS leaders in Richmondshire are worried the district council's decision to take a tougher line on the payment of rates could leave some firms facing sizeable bills they can ill afford.

The local authority claims too many firms have been taking advantage of a system which allows them to pay in instalments. A growing number have been paying late, which the council claims is undermining its ability to operate smoothly.

As a result, it will now only be issuing one reminder of payment being due within each financial year; any failure to pay after that will trigger a cancellation notice which will oblige the company to pay the business rate it owes for the remainder of the year.

Failure to meet the demand could then result in prosecution.

The Secretary of the Richmond Business and Tourism Association, Dr Mike Nicholls, said he could understand the reasoning behind the new policy.

However, he admitted he was worried about the implications for small rural firms still trying to recover from the impact of the foot-and-mouth crisis.

"It is easy to make mistakes if you are a small business or if you are trying to cope on your own," he said. "Under the new system, even if you miss the deadline by a few days, you could find yourself in trouble.

"Just one mistake could mean you are facing a bill you can not afford on one lump sum and that could prove a massive problem for those who are still suffering as a result of the foot-and-mouth outbreak."

The council has indicated it is willing to speak to business people who may be struggling with their rates.

Anyone who feels they need assistance can contact the Local Taxation Office, on (01748) 829100 and ask for extension 321 or 231.