HUNDREDS of small businesses selling alcohol in Worcestershire and Hereford-shire could find themselves trading illegally unless they meet a looming Government deadline - and between them fork out more than half a million in new licensing charges.

Firms including off-licences, wedding venues, agricultural shows, corner shops, and tea rooms, as well as pubs, bars, nightclubs, hotels and restaurants, will have to pay up to £900 by Saturday, August 6. This compares to the current charge of £30.

If they don't do this, they face prosecution when their old off-licence certificates expire at the end of November.

Steven Kitchener, of the Saracens Head, in the Tything, Worcester, said the charges could have a knock-on effect for consumers as premises put their prices up.

"There are more than 600 licensed premises in Worcest-ershire and they are having to pay out a lot of money in return for very little," he explained.

"To apply for extended opening hours costs at least £500-600 as people have to pay solicitors to draw up plans. Then it is nearly £200 for the licence itself and more if you want personal licences. To renew these every year costs nearly £200.

"I can't see many people digging into their own pockets to pay for this so prices will go up.

"There is too much red tape and the system is unfair."

The Federation of Small Businesses has taken up the issue with the Government.

FSB spokesperson, Angela Smith, said: "The new licensing scheme is a very blunt instrument that fails to distinguish between a city centre fun pub and a B&B."

bed and breakfast which makes less then £100 a year from alcohol sales.

"This is a stealth tax that raises additional revenue for local authorities. Most neighbourhood pubs and small businesses will end up paying more.

"We accept that the new licensing regime is in place and are urging our members to submit their applications on time to avoid being shut down. But that does not alter the fact that the Government's approach has been incredibly heavy-handed, resulting in a system that is overly-bureaucratic and which imposes disproportionate costs on small firms."