SMALL petrol stations face being forced out of business by huge rates hikes a Gloucestershire MP has warned.

Cotswolds Tory Geoffrey Clifton-Brown raised concerns at Westminster amid continuing fears hundreds of rural forecourts could be put out of business if Government continues with plans to introduce 'crippling' charges.

Currently the business rates of petrol stations are based on their turnover, or throughput, rather than size, like other retailers.

There are concerns the Valuation Office Agency suggestion of increasing these rates by up to 200 per cent could have a devastating impact on rural and independent filling stations, many of which already struggle to compete with the fuel prices at large firms and supermarkets.

The plight of small petrol stations was highlighted by Mr Clifton-Brown during a parliamentary debate.

He told MPs: "Petrol stations are unique in that their business rates are calculated not only on the basis of rental value, but on top of that, on assessments of their turnover. That is one reason why they are facing such huge increases.

"Petrol stations are the only property class that I know of that is assessed in that way.

"It is grossly unfair on small petrol stations, particularly in rural areas, which are closing as a result. That will mean that there is even less competition, which will mean that prices for our rural constituents will rise."

Rateable is calculated by the VOA every five years. Because of the unique way their valuation is calculated, the upcoming hike will see more than 1,500 garages facing at least a doubling of their rates.

Brian Madderson, chairman of trade body RMI Petrol which represents two-thirds of filling stations, said: "I have nine sites and our rateable value has increased by 74 per cent on average. In cash terms, the rate we will have top pay will go up 46 per cent. This is completely unfair."

Figures released this month reveal the number of petrol stations in the UK have fallen by 343 over the last 12 months to 8,921

Local Government Minister Barbara Follett said: "The business rates system, which has been in its current form since 1990, is designed to ensure that the burden of this tax is equitably distributed across all non-domestic ratepayers.

"Smaller businesses will see their rates capped at 3.5 per cent, and larger businesses at 11 per cent.

"The Valuation Office Agency examined 1,300 rents for petrol filling stations.

"Throughput is used because we believe it is a better guide to value than size, and this is the practice of the petrol filling station market.

"This approach is not new, and it reflects actual practice in the market when private sector surveyors negotiate rents for petrol filling stations.

"Some petrol filling stations will face increases in rateable values, thanks to rises in rents.

"However, the revaluation will also ensure that 960 petrol filling stations will receive reductions in their rates liabilities."