WORCESTERSHIRE could fall foul of a post code lottery following Chancellor George Osborne’s announcement on business rates at the Conservative Party Conference.

Mr Osbourne wants local council's to retain money raised through business rates, but owners of small businesses in the county can see trouble ahead.

Judi Brazkiewicz, Worcestershire chairman of the Federation of Small Businesses, said: "I am very concerned that as Worcestershire is not a high yield business rate county, the net monies collected under the new scheme may fall short of the grant paid to local authorities in previous years. More significantly for local businesses, the vast majority of which are small, there has been no mention of the small business rate relief scheme, which FSB has always campaigned to become a permanent form of local business support.

"The new business rates scheme may well place in local hands the continuance of small business rate relief, which could result in something of a postcode lottery as some councils will undoubtedly find it tough to find funding to provide the relief which many small businesses have come to rely upon.

"The Chancellor’s surprise announcement was certainly not the business rate review that was promised in his March Budget. However, on the plus side, when local authorities become accountable for setting, collecting and allocation of business rates, business owners will be able to raise local issues, challenges and barriers directly with their councillors, which I hope will remove some of the bureaucracy."

National FSB chairman John Allen added: " The announcement to allow councils to retain business rates presents a huge opportunity for local authorities and business to work together to boost local growth, develop a fairer tax system and create the jobs of the future. We also know there will be challenges to get the new system right. We want to ensure businesses don’t get short-changed. It is essential the new rates structure works for all our 5.2m small firms.”