"Before 2008, I had never heard the phrase 'separate hereditaments'. But those two words now define the greatest threat to my business and to hundreds of others around the country."

Tony Woolrich, Managing Director, NW Trading

Whats it all About?

• In 2007 and 2008 some 678 businesses situated in the 55 statutory ports in England and Wales were presented suddenly and unexpectedly with demands to pay significantly increased non domestic rates (NDR) on their premises situated in the statutory ports. In Merseyside some 70 businesses did not receive notification until September 2008
• Due to the failures of the Valuation Office Agency (VOA)to carry out its duties, port businesses did not know in advance of the increased liability they would have to pay
• Also as a result of the failure of the VOA to do their job these businesses also received backdated rates bills from 2007/8 to 1 April 2005
• Port businesses cannot retrospectively recover the increase in their costs from their customers
• A substantial number of port businesses are now faced with a sudden and significant increased cost to their business and either must become insolvent, create involuntary redundancies, reduce their investment in their businesses or re-direct their investment abroad
• The reality is some have already gone bust and other companies are reviewing their investment plans

What are the Problems Arising form This Issue?
None of the businesses object to paying rates directly. However, we do believe the implementation of this current scheme will bring about a number of 'unintended consequences', namely:

• Businesses operating in the Liverpool City Region based dock facilities could become insolvent by the payment of the backdated and increased Rates going forward
• People will be made redundant both directly and indirectly through the loss of dock businesses. We estimate that somewhere in the region of 3000 jobs are at risk in Merseyside alone
• Businesses will reconsider investment in their Liverpool City Region based operations
• Businesses based in the regions dock facilities may consider relocating their businesses to other lower cost areas which may affect supply chain efficiencies as well as the economic impact on the region
• The regeneration of the Liverpool City Region will be adversely affected

What are We Asking of Government?

• Withdraw the requirement for backdated rates from 1st April 2005 element of the rates bills.
• Allow operators across the region and the country to work with the VOA to assess businesses properly & implement the review on 1st April 2010 (the next rating review date)

Find Out More

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