A LOCAL authority has taken the unusual step of voting to press the Government for permission to pay back thousands of pounds in business rates to firms.

The controversy began earlier this year when Westminster ordered Richmondshire District Council to pursue unpaid tax from more than 100 companies, dating back to 1993.

When demands started dropping through letterboxes, some paid up rather than risk a court hearing going against them.

However, others formed a collective to contest the issue, and a legal ruling in May went in their favour.

Magistrates decided the council could only demand back payments for the past two years.

Those who paid demands for the past seven years were expecting most of their money back, but regulations prevent the council from reimbursing them.

The authority decided to press the Government for a special dispensation, which would allow it to return the cash, but a meeting in Leyburn, on Tuesday, was told no reply had yet been received from the Department of the Environment, Transport and the Regions.

Councillor Edward Forth urged the authority to continue to press Westminster for an answer, and a vote on the issue won unanimous support.

Coun Forth said: "The business ratepayers who had refused payment, or had held off pending the result of the court case, saved approximately £104,000."