Rates fight is backed
CAMPAIGNERS against a crippling retrospective business tax on port-based firms were cheered today by news that the Conservatives have vowed to overturn the charge.
The pledge to scupper the tax came as CAT (UK), which is leading the revolt at Teesport, stepped up pressure on the government by calling a meeting with Labour MP Vera Baird.
The political row intensified as new documents from the Insolvency Service admitted that firms could be forced into insolvency as a result of the massive backdated tax bills.
Although the government has conceded an eight-year breathing space for firms to pay, millions of pounds are sitting as a charge on balance sheets.
This morning’s visit by shadow Communities and Local Government minister Caroline Spelman to Immingham Docks on the Humber in which she announced that the Tories would press for primary legislation to be introduced to overturn the charges, co-incided with a meeting between CAT (UK) chiefs at Teesport and Mrs Baird.
It will argue that 84 jobs could be lost at the port if the government refuses to back down. The Renault car distributor has already warned that the carmaker is looking at repatriating the added value work it carries out to a French dock. Other major European car exporters could follow suit.
Mrs Spelman said under Tory plans, the current ratings list and system, drawn up in 2005, would remain in force for ports. Any new system would be introduced only in the 2010-15 rating cycle, following appropriate consultation with industry and with advance warning. There would be no retrospective charges. Such an approach was advocated last month by the cross-party Treasury Select Committee.
Conservatives will be tabling amendments to the Local Democracy, Economic Development and Construction Bill - currently before Parliament in the House of Lords.
Caroline Spelman said: “Local firms are already struggling to make ends meet thanks to the recession. These unfair, retrospective taxes from Gordon Brown’s tax inspectors could be the last straw. Even the Government’s own Insolvency Service is warning that the Ministers’ plans could push firms into insolvency.
“This whole affair has exposed systemic failure at the heart of Government. The retrospective taxes break the Government’s own rules, there was no impact assessment, no consideration of the harmful effect on the wider economy and inadequate warning. Yet no-one is taking responsibility.
“Conservatives will be tabling amendments in Parliament to change the law and stop these retrospective tax changes. Any reforms to the rating system for ports should take place in the next rating cycle after proper consultation and with advance warning for industry.”
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