BUSINESSES in Colchester are set to be better off as business rates drop - but it will leave Colchester Council out of pocket.

Lower bills on average are also promised for many other businesses across Essex as their rateable values are reassessed.

Government figures released claim, on average, rate demands for businesses should drop by 5.7 per cent in Colchester.

However, Iain Wicks, development manager for the Essex Federation of Small Businesses, said the figures came with no context and were just averages.

He continued: “There are businesses across the county which are worried. We do know there are businesses which face a significant increase and which will have a significant impact on jobs.”

However, Colchester MP Will Quince said it had been seven years since businesses rates were revalued, so there would be winners and losers.

He continued: “There are a lot of businesses in the town centre suffering from business rates and rents.

“Any reduction would be welcomed, particularly by the retailers.”

The Conservative MP said he discussed the issue with Chancellor Philip Hammond on Monday.

Mr Hammond has come under pressure from MPs who fear basing rates on the value of a property, rather than income, could unfairly hit shops and pubs, while out-of-town warehouses and retailers, such as Amazon, benefit unfairly.

Labour called for transitional relief for those adversely affected.

Mr Quince agreed with the principle adding: “We have got to make sure the businesses adversely affected have things to soften the blow.

“But for most Colchester businesses, this revaluation is going to be good news. We will have to wait and see.

“Businesses do have a right of appeal and they can get in touch with me. The figures I have seen suggest the vast majority will be happy as there will be a 5.7 per cent reduction overall.”

Mark Cory (Lib Dem), Colchester Council’s councillor responsible for for resources, said the authority’s liability for business rates was set to increase by £100,000 a year.

He added: “This, combined with difficult Government cuts, means we are having to make extensive savings, increase commercial income, and finally look at raising council tax for