An end in sight to the UKs port rate fiasco

Visiting AB Ports in Ipswich this week, local goverment Minister Bob Neill said that the Government’s work to support port businesses, the backbone of Britain’s global export industry, has already helped them continue to thrive and grow, and that they would now be able to move forward confidently without the unexpected return of extortionate business rate bills.

From 31 March, affected businesses will be able to either waive or reclaim the bills incurred under the unpopular ‘port tax’. The estimated value of waived tax bills across England is expected to total more than £66m. The Ports of Liverpool and Hull alone are expected to be able to claim back £11,521 and £9,543 respectively.

David Pendleton at Mersey Maritime, said: “The Government’s determined effort in first freezing backdated payments and now removing them altogether means that these companies can finally concentrate on moving forward and creating jobs and wealth for the wider economy, which is vital at this time.”

The rates row started after a review of ports by the Valuation Office Agency in 2008 meant that many port based companies faced business rates bills backdated to 1 April 2005, reaching into the millions. Many businesses campaigned against the demands at the time as they were seen to be seriously damaging the industry’s competitive advantage.

The Government initially moved to freeze payments to help prevent job losses and is now demonstrating its commitment to help ease the heavy debt burden in the longer term.