Huge tax increases could seal the fate of many rural petrol stations, a Shropshire MP claimed today.

Philip Dunne’s comments come as new Government figures revealed the number of independent filling stations in England facing rises in their rateable value.

The Ludlow Conservative MP says that the increases will force many stations to close or to stop selling fuel.

He said that information received in answer to a Parliamentary question showed that 130 petrol filling stations across England will be hit by rateable value increases of more than 350 per cent from April.

And 160 will see increases of 250 to 350 per cent; 180 between 200 and 250 per cent; 1,040 between 100-200 per cent and a further 1,550 between 50 and 100 per cent.

Mr Dunne added that the rises would force many petrol filling stations to close or to cease selling fuel.

He added: “Now we have official confirmation of what I have been told by Ludlow constituents and industry representatives from across the country.

Valuation

“Over 3,000 petrol filling stations in England are facing an increase in their rateable values of over 50 per cent, of which half are facing increases of twice their current rateable value. Almost 300 are looking at increases of 250 per cent or more.

“Unless ministers instruct the Valuation Office Agency to reconsider its valuation method, based as it is on an ill-considered calculation of the rental value of these premises, we will see yet another vital service disappearing from our rural areas,” he added.

Mr Dunne has recently discussed these problems with ministers.

An Early Day Motion, sponsored by Mr Dunne, calling on the Government to instruct the VOA to reconsider its revaluation has attracted cross-party support.

He added: “Government ministers are hiding behind the transitional relief arrangements which will limit the cash cost to these businesses in the first year. But this applies primarily to election year.

“The escalation of rateable value increases kicks in fast over the following years, with compounding 25 per cent a year increases in the final two (of the five-year transitional scheme). This is a poison pill for an incoming government.”

By Sophie Bignall