The District Auditor could take action to prevent a council keeping its commercial rents lower than the market value.

Adur District Council could be asked to explain itself to the local authority watchdog if it does not maximise income from shop premises in Southwick Square.

Traders came up with a 3,000-signature petition when the council announced plans to raise rents by up to 60 per cent. They had been frozen for more than five years.

The council agreed to maintain existing rents until a review is completed in February.

A report on the implications will be considered by the council's development and scrutiny committee tomorrow.

Chief planning officer Derek Wade said: "Settlements of significantly less than the benchmark would have severe ramifications for the council's budget.

"Adjustments throughout the budget would have to be made to redress the balance.

"The council is under a duty to dispose of land, including letting by leases, for the best consideration that can reasonably be obtained.

"In other words, if a council wants to dispose of land for less, they must firstly obtain the consent of the Secretary of State.

"The District Auditor could ask a council to explain the circumstances should it decide to set rent levels at less than the market level professionally advised."

Mr Wade said that to agree to anything other than market level rents would have a knock-on effect on other commercial properties throughout Adur.

In the meantime, it has already agreed increases of less than the commercial rate with some businesses involved.

That has resulted in at least one trader claiming Adur had set a precedent for others who pay rent to the council for their shops.