John Prescott
THE campaign to save up to 3,000 jobs at Mersey port companies threatened by huge hikes in business rates has won the support of John Prescott.
But hopes that a swift government U-turn could address the industry’s fears have been dashed with the revelation it will take new legislation to change the policy. The former deputy prime minister has intervened in the increasingly fraught row over a shake-up that has landed some firms with a shock bill for hundreds of thousands of pounds.
Mr Prescott – who represents a seat in Hull, where the port has been hit as hard as Liverpool’s by the changes – is writing to Gordon Brown to ask for an urgent meeting about the issue.
The intervention is a big boost to Mersey port companies, because he is one of the few Labour “big-hitters” whose voice will be heard by the busy Prime Minister.
Hopes rose last week when a Cabinet minister hinted at a U- turn which could see the most punishing aspect of the shake-up – backdating the rate increases to April, 2005 – could be dropped.
But it has emerged such a move would require a fresh Bill to be brought before Parliament, a cumbersome and time-consuming process.
The bad news was delivered by John Healey, the local government minister, in a meeting with MPs from port cities, including Riverside MP Louise Ellman.
The minister also promised to explore spreading the debt over a longer period and transitional support for those businesses affected, if new legislation could not be brought forward.
The revamp ends the system where the port authority has been responsible for payment of busi- ness rates, based on port turnover, and collected them as part of the rent charged to leaseholders.
In 2003, the Government announced a switch to a direct levy on companies, based on the size of their premises, but – because the valuation process has taken so long – those firms are now being asked for three years’ rates in one go.




