Rating and Valuation (S.I., 2009, No. 204)

The hon. Gentleman is exactly right. The problem is not that the facts were not available when those long-term decisions were made; the facts did not exist at the time. As I was preparing for the debate, I was also dealing with some casework related to the tax credits system. The Minister said repeatedly that there is no ability to waive a tax liability for businesses, but as I was dealing with that casework, I wondered whether some principles could apply to both. When people apply for tax credits, it is made very clear to them that they must tell Revenue and Customs if their circumstances change; otherwise they will be liable for the recovery of overpayments. However, the VOA did not tell businesses that their taxation circumstances would change, let alone that they would be judged retrospectively. So, surely, the Government are responsible for the loss of their own income, because they failed to act in a timely way. The second principle with which tax credits are applied is that, if overpayments are caused by HMRC error, people are not required to pay. The delay in imposing this liability is entirely due to the VOA's incompetence, so I do not understand why similar principles cannot apply. It is understandable that businesses are completely bewildered. They are expected to deal with a completely appalling process, while Departments proceed as though nothing has happened and everything has gone completely smoothly. Finally, local authorities have been placed in an invidious position. They have a statutory duty to send out bills and collect revenue, but they have a responsibility to recognise and support their local economies. They play a key role in recognising the importance of ports to the local and national economy. They have a role in promoting the economic well-being of their areas, and many of them feel that these measures will undermine that economic well-being. The statutory instrument aims to make the burden more manageable for those businesses. It is half an apology, but it does not seek to right the wrongs that have resulted from this appalling process. It is entirely appropriate that we have had another opportunity to debate these measures, particularly on the Floor of the House. Like the hon. Member for Bromley and Chislehurst, I do not want to vote against the regulations, because that would leave ports and businesses in an worse position, but the Government need to introduce proposals to try to right these terrible wrongs.