UK government reaffirms port rates reversal
Liverpool was one of 33 English ports where businesses were facing crippling backdated rates demands.
The UK’s Local Government Minister Bob Neill reaffirmed on Tuesday the industry saving action taken by the new coalition government to help port based businesses facing an insolvency threat after being hit with significant and unexpected port taxes in 2008.
Following interest raised in Parliament the minister wrote on Tuesday to local MPs reiterating the lifeline that the tax rebate decision has given to many local port based companies in their constituencies.
Many job cuts have been spared and ratepayers occupying as many as 700 port properties could see the financial burden lifted as a result of the Coalition’s emergency budget £175m commitment to waive backdated business rates for all eligible properties.
Port businesses campaigned against the backdated tax because it was seriously damaging the UK industry's competitive advantage. Following a recent meeting with port business representatives the industry say they and their customers can now can look forward to the future with confidence, unburdened by the imposition of unfair, backdated taxes imposed by the previous government.
Backdated liabilities totalling £19m were assessed on 59 port businesses at Grimsby and Immingham, 100 businesses were charged £12m at Liverpool and Garston, 34 businesses for £11m at Hull, 43 for £9m at Sheerness, 68 for £5m at Tilbury, and many, many more.
On Tuesday Bob Neill said, ‘Our decision to waive and repay these unexpected port taxes is a victory for common sense, saving jobs and freeing firms from balance sheet insolvency. Many companies across the country are now able to move forward confidently, unburdened by the crippling debts this tax grab landed on hundreds of businesses.
‘Despite the financial situation that we inherited, we have honoured our promise to find a permanent solution to the problem. We’ve already frozen any bills and are working hard to legislate for their cancellation at the earliest opportunity.’
Andrew Finfer, acting on behalf of affected ports businesses replied, ‘Port businesses welcome the Chancellor's commitment to abolish and repay the unfair backdated liability to pay rates that has caused so much damage to port businesses. The businesses and their customers can look forward with confidence to the future unburdened from and no longer distracted by the imposition of unfair taxes that have damaged the industry's competitive advantage.’
Colin Littler, chairman of one threatened company, NW Trading Ltd of Birkenhead, summed up the sentiments of many UK port businesses, saying, ‘One of the big things this has changed for us is the ability to invest in our company. As a small business the backdated rates demands wiped out 80% of our balance sheet, which took us virtually to the edge. As a result of this change, our balance sheet is now set to double and we can employ more people.’
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