NEWCASTLE council's pursuit of a 46.9 per cent increase in residential and business rates has hit a new battlefront as the region's key business group takes aim at City Hall.
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It has also sparked a war of words between two of the city's most powerful and influential leaders.
The latest salvo was fired by Hunter Business Chamber chief Kristen Keegan, who accused the council of a "cash grab" that could force some businesses to the wall.
Lord mayor Nuatali Nelmes fired back, saying the council sought the rises to not only balance its books but also to meet the cost of city revitalisation projects, which the community and business groups want.
The council surprised many in November when it voted to apply for a 46.9 per cent increase to residential and business rates over the next five years.
The move came after it was widely tipped to seek a 37.5 per cent increase over the same period.
The council's public consultation found more people favoured the 37.5 per cent increase over other options.
If the application is approved by the Independent Pricing and Regulatory Tribunal in May, the average residential rates bill will have increased $500 a year by 2020.
The average business rates bill will rise by almost $3000, to $9422, a year in 2020.
Many of the city's small business owners are livid.
They say they will need to find another $5000 a year to pay rates on their home and business.
