TOWN centre businesses could be hit with a new tax to help pay for improvements and extra services.

Blackburn with Darwen Council wants to add a surcharge of up to 2.5 per cent to business rates to help pay for things to make the town centre a better place, such as CCTV or more street cleaning.

Last year, the Government altered laws on business rates -- which are collected locally but go straight to Government -- so that councils could apply for Business Improvement Zones and keep a part of the rates they collect. If the Government approves the establishment of a zone -- which it has said it will if there is support from businesses -- up to 2.5 per cent could be added to business rates.

Because of the way business rates are set -- taking into account size of shop fronts, total floor space and other factors -- there is no such thing as a typical business rate bill.

It is one of a number of proposals being put forward by Blackburn with Darwen Council for their updated Town Centre Strategy.

While most of the priorities will be subject of a multi-million pound bid for funding from the North West Development Agency, council bosses believe starting discussions with traders about a Business Improvement District now will help them fund environmental and safety improvements.

Coun Andy Kay, executive member for regeneration, said: "It is something which we are only just starting to look at. We have not even worked out a boundary for the zone or how much money would be generated.

"The important thing is that we get the backing of the traders. We are starting to consult with them now."

Phil Ainsworth, from the Darwen Street Traders Association, said: "As long as the town centre had direct benefits from this, I certainly think it is something traders should consider."

Chamber of Trade president Ray Goldstone, himself a market trader in Blackburn, said: "It is very important that there is consultation on this. We have to be assured we would see clear benefits as a result. Rents go up every year here but we don't often see things getting better."

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