Shop owners in a Black Country town say they have been landed with higher tax bills following the opening of a new Tesco superstore nearby.Traders in Cradley Heath have been landed with backdated business rates charges going back to the same time as the opening of the supermarket in September 2007. And some High Street shopkeepers are now planning on appealing against the tax bills after claiming that their trade has already been hit by the arrival of the supermarket.

Stores in the area were given a reduction on their business rates value two years ago to account for the disruption being caused by the construction of the new supermarket and bypass.

The business rates are collected by Sandwell Council based on an assessment from the Government-appointed Valuation Office Agency (VOA).

The rates have now been raised and restored to full value but store owners have been angered after the council also billed them for the difference dating back to the completion of the Tesco store last September.

Janice Stokes, owner of Panache Fashions in High Street, said she was shocked to be asked to pay an extra 15 per cent for the past year and being asked to fork out an extra £114 on top of the rates she had already paid.

VOA spokeswoman Liz Halliday said: “Business premises on the High Street in Cradley Heath were given a 15 per cent reduction in their rateable value in 2006 to allow for the major disruption to the area whilst the bypass and new Tesco were being built. With the construction works finished, the rateable values have been restored to full value.”