Ports take rate fight to London

BUSINESSES based at the Port of Liverpool are taking their fight against backdated rates to Westminster today.

Campaigners say changes to the way rates are paid at ports have led to crippling bills that threaten hundreds of firms and thousands of jobs across the country.

MP for Crosby, Claire Curtis-Thomas, is holding a reception at the House of Commons to raise awareness about the issue three weeks after Chancellor Alistair Darling announced an eight-year payment window in his pre-Budget report.

Kieran Hall, managing director of Port of Liverpool-based Denholm Handling and a member of the Mersey Dock Rating Group said the government’s solution would not work.

“Once the rates bill arrives, the liability has to be recorded on the company’s balance sheet. If the bill is greater than the company reserves, then the company becomes insolvent regardless of when the liability has to be paid. This is the likely scenario for most of the 678 companies affected.”

He added: “Those companies that do survive will find their balance sheets are adversely affected and it may well present them with difficulties in gaining additional finance for expansion in an already difficult lending environment, as lenders will see their increased liabilities as an increased risk.”

David Pendleton, business development director for Mersey Maritime, said: “The basic fact is that these businesses should not have this liability in the first place and should now be working with the Valuation Office Agency in preparing their businesses for the 2010 rate book and not fighting the threat of insolvency.”

The row began over the retrospective collection of National Non-Domestic Rates (NNDR) which resulted in businesses in Liverpool being presented with unexpected bills, including payments for this year and back payments as far back as 2005.

Leaders of ports-based businesses 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.