Small and Medium businesses are unable to fund the bill for benchmarking, according to the chief executive of the ISME Mark Fielding.
He says that local authorities are charging too much, in some cases as much as 25% in commercial rates, in the midlands.
Mr Fielding maintains that either ISME members are going to be forced to close their businesses or pass the charges on to the consumer.
He says that it is a sham that local authorities are making businesses pay the bill for the Government's benchmarking process.