Corporation of Hamilton has announced rates increases of 2.5 per cent for the coming year.

Corporation secretary Mr. Roger Sherratt said: "It's a nominal increase which is just below the cost of living increase. "An increase was inevitable because expenses are always increasing, but I know the Corporation members wanted to keep the rise as low as possible.

"It's about the same as last year -- we try to have small increases every year rather than leaving it for a few years and imposing a bigger increase.'' Mr. Sherratt added that the Corporation was aware of difficult trading conditions for city retailers and had tried to peg the increase at a reasonable level.

He said: "In the circumstances, the Corporation have kept the increases to a minimum.'' Mr. Bobby Rego, president of the city's Chamber of Commerce, said that the business community was currently not in a position to cope with extra overheads.

But he added: "I am not surprised by this, but it appears that the Corporation has made every effort to keep the increases at or below inflation.

"It's not welcome, but we certainly understand their position -- they are facing increased costs in maintaining the city.'' Mr. Rego said that the Corporation had supported the Chamber on several initiatives in the past aimed at attracting shoppers into the city.

He added: "The Chamber and the city as a whole are getting value for money from the Corporation.'' Rates will now be collected from business owners at 3.28 per cent a year on the annual rental value, while residential owners will pay 0.87 per cent a year of the annual rental value.

Businesses and families who rent property inside the city boundaries also face an increase in rates.

Occupiers of business premises will pay 3.28 per cent a year of the annual rental value, while domestic occupiers will pay 0.44 per cent a year of the annual rental value.