I am aware of that as it has been raised by my hon. Friend and a number of Members who sit on the Labour Benches, as well as by Members from all other parties. It is not a purely partisan matter, so it is all the more surprising that we have met with such a stonewalling response from the Department for Communities and Local Government.
It is worth examining these matters in a little more detail, because they clearly show the inadequacy of the Government's approach. Overall, there will be a very significant increase in the burden that the ports sector will have to bear. Not only is it retrospective, but it follows an increase that was imposed with no impact assessment, no consultation and no assessment of the effect on the wider economy. Moreover, the policy contravenes the Treasury's own guidance on retrospective taxation. That information does not come from me; all of it was obtained by hon. Members in answers to questions that they had asked the Government. The Government have breached their own rules.
Against that background, it is particularly invidious to use retrospective taxation. There are clear parameters for the use of retrospective taxation: it should be used very rarely, to preserve revenue and other significant interests. As there was never any assessment of the amount of revenue that might be raised, no one knew what there was to preserve. We have had enough stealth taxes from this Government in the past; now we have a backdated stealth tax as well, and that makes their action doubly invidious.
The Humber Docks Rating Group, which has met a number of Members in all parts of the House, estimates that some 600 businesses could be affected. Firms are already going under. Three have gone under so far, and, although they are small firms, I believe that between 60 and 100 jobs have been lost. A number of other businesses have reported that they are in difficulty—and this is not just affecting the small business sector; it is affecting large multinationals as well. At a recent meeting at the House of Commons, DFDS Seaways made it clear through its UK managing director that unless the treatment of the ports sector changed, it would have to reconsider its investment and operations in the United Kingdom.
That underlines the point made by my hon. Friend the Member for Canterbury (Mr. Brazier). This is an area in which the United Kingdom's competitiveness is at stake. Organisations such as DFDS Seaways will simply relocate their operations in Europe—in Rotterdam—and, as my hon. Friend pointed out, the transhipments will then come by road, which will have bad consequences for the environment. This is the worst example that one could possibly imagine of the Government's lack of a joined-up policy.
Business Rates and the Recession
Proceeding contribution from
Robert Neill
(Conservative)
in the House of Commons on Wednesday, 25 March 2009.
It occurred during Opposition day on Business Rates and the Recession.
Type
Proceeding contribution
Reference
490 c381-2 
Session
2008-09
Chamber / Committee
House of Commons chamber
Subjects
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2024-04-21 10:41:01 +0100
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