Lord Bates
To ask Her Majesty’s Government what arrangements they are making to collect backdated non-domestic rates in respect of port-side operators.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)
My Lords, in June, the coalition Government implemented an immediate moratorium on port operators’ backdated payments, and in the emergency Budget we announced our intention to take primary legislation at the earliest opportunity to cancel the “ports tax”. The repayment scheme introduced by the previous Administration for businesses with backdated rates bills, such as those in ports, did not go far enough to address the problems facing these businesses, many of which are on the brink of insolvency.
Lord Bates
My Lords, I thank my noble friend for that reply, which will be widely welcomed in the ports of the United Kingdom. They have been hit dramatically by the unfair imposition of this backdated tax. Is she aware that, while this will provide relief for many businesses already in place, it is too late for many hundreds of businesses and many hundreds of vital jobs that have already been lost? Will she consider introducing a thorough review of the chaotic handling of this entire revaluation process by the Valuation Office Agency and by the previous Government so that lessons can be learnt and mistakes not repeated?
Baroness Hanham
My Lords, I thank my noble friend for that and I know that he has taken an interest in this matter over some time. The Valuation Office made its decisions and has been criticised by the Select Committee on the handling of the review of ports. I think that the Valuation Office itself recognised that its communications with businesses affected by the revaluation were deficient and, while it is not clear that a formal inquiry on the handling of this matter is necessary, the Government will be looking at the issues raised.
Lord Greaves
My Lords, on behalf of the Liberal Democrats I, too, welcome the change of policy which the Minister has revealed. Did she say that the revaluation has been cancelled and, if so, on what basis will the rates now be paid by port-side businesses? If the revaluation has been cancelled, will those businesses which have already paid their backdated demands in part or in full be refunded?
Baroness Hanham
My Lords, I said that the backdated rates will be cancelled—for the years between 2008 and 2010—and any that have already been paid will be refunded.