A COUNCIL leader in Worcestershire has voiced his dismay over a £13 million tax refund to GP surgeries - calling it "patently unfair".

Councillor Simon Geraghty, who leads Worcester City Council, says he fears the whole county is being penalised under the controversial business rates wrangle.

As your Worcester News first revealed in August three GP surgeries in Sheffield launched a legal fight to recoup cash they believed was wrongly paid due to flawed assessments on what the business rates bills should be.

In the summer an upper tribunal decided purpose-built surgeries have no realistic 'alternative commercial use' and should therefore pay much less tax - around 30 per cent of the old bills.

The refunds which will need to be paid back by Worcestershire's councils are around £13 million in total, including £1.2 million from the city council.

The Government is currently in dialogue with local authorities about the bills, with some refunds expected to date back to 2005.

Councillor Geraghty has challenged central Government to "pick up the bill" instead.

"The decision on GP surgeries is disappointing and representations have been made on a political and managerial level on it," he said.

"To me, it seems patently unfair that we're being penalised for something that went to Government - they kept the benefit and now we're being penalised.

"The Government should pick up the bill on this and we'll be reiterating our case if required."

His comments come as some backbench councillors elsewhere in the county have also voiced concern over it.

Councillor Anthony Warburton said he attended an audit committee meeting at Malvern Hills District Council earlier this month where finance officers confirmed £1.7 million had already been returned in June, from an estimated rebate total of £3 million.

"We are totally screwed in terms of doing anything about it, for all of us it's very serious," he said.

The money is due to be handed back to NHS England and reinvested in front line health care, with 1,600 cases around the country still outstanding.

The £1.2 million owed by the city council has been budgeted for in the accounts.

A spokesman for the Department of Communities and Local Government said: “This Government believes local people know what’s best for their area.

“That’s why we introduced the local retention of business rates, allowing councils to keep half the revenues raised from business rates - equivalent to £11 billion a year.”