Parliamentary Search

Written question asked by Austin Mitchell (Labour) on Monday, 22 March 2010, in the House of Commons. It was due for an answer on Thursday, 25 March 2010. It was answered by Barbara Follett (Labour) on Tuesday, 30 March 2010 on behalf of the Department for Communities and Local Government.

Non-domestic Rates: Ports

Question
To ask the Secretary of State for Communities and Local Government what his estimate is of the amount of retrospective business rate payments (a) owed by newly-assessed port companies, (b) paid in full by such companies to date and (c) paid in first instalments under the scheme for paying rates off over eight years; how many companies have (i) paid in full and (ii) paid a first instalment; and what the estimated cost of the deferral scheme is to the public purse.
Answer

[holding answer 25 March 2010]: As at December 23 2009, the Valuation Office Agency have advised my department that 724 newly assessed, port based properties are liable for backdated Rates to April 1 2005.An estimate of the monetary value of the backdated liabilities was made in respect of all ratepayers (not just port based properties) and was published in the impact assessment alongside the Explanatory Memorandum for the Non Domestic Rating (collection and Enforcement) (local Lists) (England) (Amendment) regulations 2009:"http://www.opsi.gov.uk/si/si2009/em/uksiem_20090204_en.pdf"This states that the estimated backdated liability, before the application of any relief's, is forecast to be approximately £131 million and the cost of the scheme to be approximately £33 million.The Government have listened to the concerns of businesses with significant and unexpected backdated bills, including some situated in ports. It has legislated to enable such bills to be repaid over an unprecedented eight years rather than in a single instalment, helping affected businesses to manage the impact on their cash flows during the downturn by reducing the amount they are required to pay now by 87.5 per cent.As at 8 October 2009, local authorities have reported that ratepayers occupying 221 properties within ports had fully discharged their backdated liability and ratepayers occupying a further 200 business properties within ports had been granted a schedule of payments. The Government does not have information on how many payments, or of what amount, the 200 properties with schedule of payments agreements have made.

Secondary information

Type
Written question
Reference
508 c1137-8W; 324132
Session
2009-10
Subjects
Ports Business rates
Link
View this Written question on www.publications.parliament.uk