By voting for the amendments, the Lords acknowledge the injustice of the situation currently facing hundreds of businesses at UK ports, which are being penalised, through the imposition of backdated non-domestic rates, for failings made by the VOA. As a result, businesses are faced with closure and jobs will be lost.
“Businesses throughout the UK will welcome the fact that they will not be penalised by retrospective taxation without any fault on behalf of the business. The damage that has been, and is being, caused to port businesses as a result of the failings of the VOA will not now be inflicted on other businesses through retrospective imposition of business rate supplements. The pain felt by businesses at Humber Docks, Mersey Dock and other ports across the country, as a result of the VOA’s actions, is something that other businesses will now be spared,” said Andrew Finfer of law firm Schofield Sweeney who drafted the amendents on behalf of the Humber Docks and Mersey Dock Rating Groups.
The Bill will now go for a third reading on June 16, 2009 and then royal assent. In the meantime, in recognition of the financial problems caused by the imposition of backdated rates, local authorities have delayed enforcing the collection of overdue rates from affected businesses, until the situation is resolved, in order to save businesses from financial difficulties and potential closure.
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