Published: 10 February 2009
Summary
John Healey: Help for businesses facing rates deferrmentUpdate:
Local Government Minister John Healey has today introduced legislation to give help to businesses facing unexpected backdated business rate bills during the current economic downturn.
Mr Healey has confirmed to Parliament that eligible businesses will be able to spread the payment of backdated rate bills in equal, interest-free instalments over eight years - businesses from across all sectors occupying up to 1,500 properties could benefit in the next year.
The move follows the Chancellor's announcement in the Pre-Budget Report of help for some companies facing these certain unexpected backdated rates bills, and covers up to 569 properties within English ports that face separate liability and significant backdated business rates bills for the first time as a result of the Valuation Office Agency's (VOA) recently completed review of ports.
The changes are on top of other help for all companies through the downturn, including free business health checks, and a pledge from Government to aim to pay suppliers within 10 days.
John Healey has today written to councils with ports in their area to confirm the arrangements they should now offer to the firms that are eligible. In addition, every port company affected by the VOA's review is also receiving details of the new help direct from the Minister.
John Healey is also set to meet with port operators in the next few days.
The Government has, however, ruled out waiving the backdated tax liability for these ports-based companies, which ministers do not have the power to do for any business taxes.
In addition to the deferment of payments, the Valuation Office Agency has put in place special arrangements for ratepayers affected by the ports review who want to question or fast-track a challenge on their assessment.
To date, the VOA reports that 78 formal appeals had been received under the 'fast track' procedure and five are fully resolved. In the remaining cases the Valuation Office Agency has made initial responses and in most instances is in further discussion with the ratepayers.
John Healey said:
"This is an unprecedented time-to-pay scheme which will help businesses faced with such backdated tax liabilities during this current economic downturn. Some wanted us to waive the tax that these firms are legally liable to pay but Government doesn't do this with any business tax, and Ministers have rightly not been given powers by Parliament to do so.
"Allowing businesses, including ports-based companies, to spread payment of those bills over eight years will help them keep their heads above water.
"And for those ports-based businesses that want to query or challenge their backdated arrangements, there is a special fast-track process put in place by the Valuation Office Agency - giving them priority attention so they can rapidly get clarity on their liability and an early resolution to any appeals."
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