Chambers lobby on dock rates
THE chief executive of Liverpool Chamber of Commerce has teamed up with his counterpart in Hull to lobby the government over the shake-up to the business rates system at ports.
The chambers have written to communities and local government minister John Healey warning that the new system could lead to redundancies and insolvencies.
The Government’s Valuations Office Agency (VOA), which sets the rates companies need to pay, embarked on a nationwide revaluation of the UK’s 55 ports in 2006.
New legislation changed how business rates are to be paid in ports. Previously, the port owner would pay rates while tenants only paid rent. But tenants are now being directly charged with bills backdated to the last valuation in 2005.
In Liverpool businesses are facing bills of up to £500,000 while companies renting premises at Hull docks have been presented with unexpected bills totalling more than £20m. Ferry company P&O received a £5m rates demand.
Liverpool Chamber’s chief executive, Jack Stopforth, said: “The economic well-being of our ports is particularly important in this time of economic uncertainty. We are concerned that in addition to the direct impact on port-based businesses that these unintended consequences will be felt in the wider economy of port regions.
He added: “The manner in which this re-evaluation has been undertaken causes us a number of serious concerns. Firstly and most seriously, the backdating of bills brings a very heavy financial burden which businesses have been unable to plan and prepare for.
“We are extremely concerned that this will have a range of negative effects ranging from reduced investment to redundancies and insolvencies.”
The chambers have put three requests to the government: Withdraw the requirement for backdated rates; allow operators to work with the VAO to assess businesses, “fairly and transparently”; and provide transitional support to affected businesses.
The VOA will appear before a Treasury Committee today to explain why it has issued unexpected rates demands.
Leaders of businesses based in British ports estimate that, unless the ratings crisis is tackled by the government, the industry faces the potential loss of business worth up to £20bn and job losses of more than 150,000.
