Businesses have accused Lambeth Council of conning them into paying bills early rather than supporting them through the economic downturn.

Some businesses in the borough were sent bills in April asking them to pay their waste collection fees a year in advance rather than quarterly.

Further warning letters from a debt collection agency were also sent to businesses who did not pay the full yearly amount straight away- around £1,000 for a small business.

Lambeth Council has said a computer glitch was responsible for the billing error, and has been working with businesses who were wrongly billed.

But a West Norwood business owner, who did not want to be named, said she only found out about the error after contacting the council herself - and still received a debt collection letter.

She said: “Lambeth certainly have not been proactive about correcting this mistake. It seems to me the council was happy to get the money banked rather than look to correct the problem.”

The bill would have been crippling for many businesses, but many still would have paid without questioning it, she added.

She said: “It is hardly the best way of the council helping us during the recession. It felt like a con to me.”

Some £540 per year is charged by Lambeth to collect one to five commercial waste bags from businesses. Six or more bags per week are charged at £2.09 per bag.

A Lambeth Council spokesperson said: "A recent computer glitch meant that a small number of businesses were mistakenly issued with an annual charge.

“We are currently working with these businesses to re-credit their accounts.”

Businesses wrongly billed should contact Lambeth Council on 020 7926 0111.