SMALL businesses in Bromsgrove could feel the pinch after two dramatic rate rises.

Firstly small retailers throughout the country were hit with an average 15.7 per cent rate rise on their premises last week, following a nationwide review conducted every five years.

Because of the increase it is feared some small shops, such as grocers, butcher and clothes stores, may be unable to pay their bills.

Even though some small businesses have been given Government rebates, it is feared it is not enough.

Anita Mears, chairwoman of Bromsgrove traders' association BroMark, said: "Small businesses have been given forms so they can be considered for rebates on the increase, but any additional costs are always difficult to bare for small outlets.

"The increases could be very concerning for businesses, especially those in Bromsgrove where it seems to be very quiet because shoppers are not encouraged to come here."

On top of the premises rate rise, small firms are also bracing themselves for increases in their 2005/06 water bills.

An inflation busting average rise of 13 per cent on the water bills was set to be put into place from the beginning of the month. The rise follows an increase in both gas and electricity for small shops.

Federation of Small Businesses Environmental Affairs Chairman John Holbrow said: "Above inflation increases on top of recent rises in electricity and gas charges will have an adverse impact on small firms. Small businesses need to carefully budget their outgoings and rely on predictable and stable utility services."

christopher.flavell@midlands.

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