A financial nightmare is unfolding at docks across England and Wales with the prospect of huge hikes in business rates triggering bankruptcies and redundancies.
The scale of a likely disaster first emerged at the Port of Hull; the first English Port to have received its rating demands (some weeks in advance of other Ports), where port operators have been asked to pay an extra £18.4 millions, (up from £1.6 millions pre 2005 to £20 Millions) including a shock 3 years backdated bills.
Port operators on the South Bank are now bracing themselves for staggering bills as new business rates are rolled out following the new business rate revaluations.
Traditionally, port operators have paid a rent to a landlord such as Associated British Ports, which then paid a sum to the Treasury to cover business rates.
But the Government’s Valuation Office Agency (VOA) – part of HM Revenue and Customs – has changed the system nationally so firms pay an individual rate based on the size of the premises they rent.
And in a move that has angered employers – and the launch of a campaign to have the decision overturned – they are being backdated to April 2005.
Shipping firm Cobelfret has indicated it could lead to 100 job losses at Killingholme, and as the demands are sent out, key figures have warned of the dire pitfalls should it happen. Regional MPs have also secured a meeting with Gordon Brown today to discuss a change to the law.
North East Lincolnshire Council leader, Councillor Andrew De Freitas, said: “There could be lots of jobs at stake. If these rates are backdated it will cripple some businesses.”
“We have two Liberal Democrat MPs on the Treasury Select Committee and we have sent the details to them to put pressure on.”
A website www.fairportrates.co.uk has been set up to support the case of these businesses and an on-line petition established at www.humberbusiness.com ‘Deeply damaging’ bills raise job fears - Humber Business
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