As the economic downturn continues Ealing Council is warning that small firms could be paying too much in business rates.

Hundreds of small businesses in the borough may be eligible for rate relief, but many do not know they could apply to receive a discount.

Business rates are set annually by the government and collected on its behalf by local councils. This year rates will increase by five per cent.

Businesses have to apply for the relief themselves. Over the coming weeks the council will be writing to small businesses that might be eligible for discounts.

Business rates are based on the rateable value of the company’s premises and this is assessed every five years.

Businesses using premises with a rateable value of less than £5,000 may receive a discount of up to 50 per cent and those with a rateable value of less than £21,500 should be eligible to pay less.

In most cases the business must occupy no more than one property to qualify for relief, but there are some exceptions to this rule.

Traders and owners of small businesses can call the council’s business rates team on 020 8825 7020 to find out if they could qualify for a discount.

Cabinet Member for Regeneration and Transport, Councillor David Millican, said: "Small businesses are the lifeblood of our borough and some 16 per cent of Ealing’s workforce are self-employed."

"We know it can be difficult for people to understand whether they’re eligible for discounts so our business rates team is on hand to help people apply."