A market trader hopes to exploit a legal loophole that could see Sutton Council have to pay back £40,000 in allegedly illegal charges.

Peter Boyes, 72, claims traders were not properly consulted on new charges for market pitches brought in by Sutton Council.

He said no details of the charges were published for consultation when they were increased last April, making the hundreds of pounds they had each been charged since void.

But Sutton Council has disputed the claim.

Mr Boyes said: “The charges are illegal because they haven't followed the correct procedure. It means everything we have been charged since is void.

“I will be pursuing them to get the money back.”

He said if he was successful he was sure other traders would follow him in taking similar action.

Sutton Council's street trading licences are estimated to cost some 30 traders working in the market a total of £4,000 a month.

Mr Boyes said even if the charges were changed now, the council would be liable to pay back 10 months of charges to traders worth an estimated £40,000.

Richard Winch, licensing manager at Sutton Council, said: "Market traders get a very generous deal in Sutton.

"Thanks to a small subsidy from the local taxpayer, traders are charged what we believe to be the cheapest pitch rents in London at just £10 per day.

"Reflecting this, our town centre pitches are fully occupied and we receive representations from local shopkeepers who want the pitches to be contained.

"Having taken legal advice, there is no technical loophole for Mr Boyes to exploit and the council, which has frozen its pitch rents for the last five years, is perfectly within its rights to collect what it is owed by Mr Boyes on behalf of local people."

Tensions have strained in recent months between the traders and the council, after delays to the High Street redevelopment in the run-up to Christmas meant they were denied electricity, harming their trade.

A market trader was also hospitalized after receiving an electric shock from a faulty power supply.