MILLIONS of pounds of taxpayer’s money could have to be paid back by councils in Worcestershire following an overhaul of the way business rates are calculated.

But it is hoped the cash – which is being refunded to GP surgeries in Worcestershire – will be ploughed back into health services in the county.

Following a change in the way business rates paid by purpose-built GP surgeries meaning the amount they are required to pay has been cut significantly, many have made successful appeals against valuations made in 2005 and 2010.

As a result surgeries in the Malvern Hills are set to receive an estimated £3 million refund and £400,000 a year on an ongoing basis while those in Wychavon stand to receive a £3.5 million lump sum and an annual £600,000. It is not known how much surgeries in Worcester stand to recoup.

Malvern Hills and Wychavon District Councils along with Worcestershire County Council and Hereford and Worcester Fire Authority will be responsible for half this and the authorities, along with Worcester City Council, have all written to the government urging them to review the situation urgently.

It is believed the refunds will be retained by NHS England while the future payments will be given to the area’s Clinical Commissioning Groups, which organise and pay for NHS services.

Portfolio holder for finance at Malvern Hills District Council Cllr Paul Cumming said: “We know a number of other authorities have been similarly affected and expect the issue to eventually have an impact across the country.

“We are raising the issue and the unfairness of the situation with MPs, the Local Government Association and district council representative bodies.

“This decision will place even more strain on our finances and whilst front line services have been protected from the cuts we’ve had to make so far, this new situation may put them at risk.”

His counterpart at Wychavon District Council Cllr Lynne Duffy agreed, saying: “The one-off refund will have to come from our cash reserves and the ongoing loss will have to be made up through further efficiency savings, carrying out more income generating work for other councils and growing the business rates base by providing land for new and expanding businesses,” she said.

“We’re hopeful the government will listen carefully to our concerns on this matter.

“I also sincerely hope that any money retained by the NHS will be spent for the benefit of local patients.”

Before 2013 business rates were collected centrally by the government and redistributed according to a set formula as a grant. After this local councils were able to retain half of the business rates collected.