SMALL business owners have called for huge reforms in the way rates are calculated, even though upcoming changes could actually see them save cash.

The Government will introduce re-evaluated business rates in April and wants to bring the amount charged in line with the property value of the firms.

Changes could see firms in affluent parts of the country like London facing eye-watering bills, where as some Colchester businesses could save cash.

But Elaine Jiggins, who owns Caffe Sala in Eld Lane, Colchester, called for a rethink on calculations even though she would be saving money.

She said: “We believe our business rates are going to go down but because of transitional relief we will not see the effects.

“We will see a small difference in the first year and a little bit more in subsequent years.

“Basing it on premises seems to be an outdated tax - you could be operating an online business with a seven figure turnover and six figure profit from your bedroom and not pay any business rates.

“The Government needs to look at it again because I know a lot of businesses are going to come off worse.

“I would definitely be looking at how to calculate it based on profit.”

She added: “For example a used car saleroom could have a £3million turnover but only a £50,000 profit because of how large their overheads are in getting the stock in.

“You have to tax people who can afford it, not on the rental value of their premises.”

Clare Wade, who owns Frippery in Sir Isaac’s Walk, said the exact new business rates have not been calculated yet but is expecting the amount to be roughly £20,000 per year, meaning they do not qualify for any business rate relief which comes in at £18,000.

She said: “There needs to be a recalculation of the threshold because if you are slightly over then you do not get any help.

“There will be shops a few doors down who are paying next to nothing because they are valued slightly less.

“Small businesses need all the help we can get - it can be so quiet in Colchester.

“Primark opening up is great and brining lots more people, but is that helping the trade of others stores in the town?

“I see lots of people with Primark bags but are they shopping in other places as well?

“People say they love small independent shops and stores but they have to show it or more people will just stop with their shops and move businesses online.”