David Cameron has called on Labour to abandon plans to hit the port industry with sharp rises in business rates.
The Valuation Office Agency is levying retrospective tax increases on firms operating in ports across England and Wales – and analysis reveals this will deliver a £124 million tax blow in the middle of the recession.
David met with affected firms on a visit to Mersey Maritime in Birkenhead – and he warned:
“These unfair, retrospective taxes from the Government’s tax inspectors will push firms across the country into insolvency. This is the worst possible tax change to introduce in the middle of a recession.”
A change to the way that business rates are calculated for firms based in ports means that local ports firms will be hit with unexpected rate demands backdated to 2005. These new taxes will hit the wider economy, as a range of companies are based in ports, such as the car industry.
David stressed, “Gordon Brown fails to realise that his inept policies will lead to thousands of jobs being lost, not just in the ports but also in the car industry and beyond.”
He urged the Government to use the Finance Bill or the Business Rates Supplements Bill currently before Parliament to amend primary legislation and stop these tax increases from hitting the port industry.