SMALL businesses in the Malvern Hills area suffering losses because of the foot and mouth outbreak may be able to claim rate relief.

A scheme to provide up to 100 per cent hardship relief for businesses with a rateable value of £12,000 or less will be considered on Tuesday by the resources committee of Malvern Hills District Council.

To encourage councils to take up the scheme, the government is offering to contribute 95 per cent of the relief granted. The council would have to find the remaining five per cent.

It would be available for small businesses able to prove loss of trade in the three months from April 1, 2001 compared to previous years.

The relief would correspond to the time when trade was lost and the application must be made while the temporary circumstances exist.

"It would be up to small businesses to apply to the council in writing and they will have to provide evidence such as accounts, order books or VAT returns," said the head of revenue services, Alan Davies.

In addition, the period for appeals against the April 2000 revaluation has been extended from March 31 2001 to June 30 2001.

The Country Land and Business Association is urging councils to implement the scheme straight away. Chris Harvey, of the Chamber of Commerce Herefordshire and Worcestershire is also calling for the government to introduce a working capital or wage replacement fund to provide immediate support for affected businesses.