Twist of irony in UK port rates battle

The irony of ports being told they must pay crippling backdated rates because the rating office made mistakes four years ago, while MPs dispute personal liability, has not been lost on Kieran Hall, chair of the Mersey Docks Rating Group.

The affected businesses abided by the rules and paid what was due at the time, just as Members of Parliament now claim with regard to their own repayment obligations.

The House of Lords recently backed the UK ports in their campaign to remove unfair, backdated rates and called for a review of the highly controversial Valuation Office Agency (VOA) bills that have threatened the viability of many port businesses.

Following this victory, the Humber and Mersey Docks Rating Groups has called for the government to remove any uncertainty about the imposition of retrospective business taxes by implementing amendments to existing regulations. ‘Failure to do so will see more businesses close at UK ports and will act as a major disincentive to multinational businesses considering setting up or continuing operations in the UK,’ said Andrew Finfer of Schofield Sweeney Solicitors, who is advising the groups.

The government suffered its third defeat on the imposition of backdated business rates when Conservative, Liberal Democrat and cross-bench peers overcame a government three line whip and carried a Motion of Regret by Lord Michael Bates, deputy chairman of the Conservative Party, by six votes.

Mr Finfer added ‘The Government is defending a system that is not equitable to all, whether a business pays backdated rates depends on what type of error the VOA makes. We would prefer that the VOA did not make mistakes, but if they do, backdated liability should only be imposed if the mistake is caused by the ratepayer. It should not be imposed if the mistake is caused by the VOA. Simple and effective.’

He also said that despite government equivocation on ‘changing the rules’, it does seem the Minister responsible, John Denham, has the power make a retrospective change to an existing regulation to remove the imposition of backdated liability without fault. This is the change which the House of Lords originally voted for, which was then over-ruled by the government.