IF ALISTAIR DARLING is looking at the Merseyside economy for guidance in preparing Wednesday’s Budget, he’ll get confusing signals.
Exciting plans for a £50m office development in Liverpool’s Pall Mall is contrasted with the growing number of unemployed.
Despite the coming General Election, a giveaway Budget at the moment would be irresponsible and, I suggest, seen through by the electorate. Yes, mortgage approvals are up, the weak pound means foreign trade is strong, and there are forecasts that consumer confidence will return.
But the International Monetary Fund is predicting the recession will be “unusually long and severe”, unemployment is forecast to rise relentlessly, and house prices could still fall by up to 15%, according to Global Insight.
We know that, under the next government, we are going to be faced with tax rises and huge cutbacks in public spending, so an honest government would start to explain that process on Wednes-day and hope to get the credit for being honest with the voters.
Indeed, it would be a tangible way of putting a full stop to the last few tawdry months where political coverage has been dominated by MPs’ expenses and the murky conduct of Brown- appointed “attack dogs”.
That’s not to say that the Chancellor should just give us the bad medicine. There are things he can do to help with particular problems here on Merseyside and one of them is port rates.
Sounds obscure? Well, industry lobbyists Mersey Maritime claim 70 firms and 3,000 jobs could be under threat because of the way the Government has reorganised the method by which business rates are paid in ports.
The shake-up means the liability for paying the levy has shifted from port owners to tenants. What has angered the firms that ply their trade along our waterfront is that, due to backlogs of work at the Valuation Office, the additional rates are being backdated to 2005.
I’m told local councils involved like Wirral, Sefton and Liverpool are being as helpful as they can and the Government has agreed to spread payments over eight years.
But dock-based firms are worried they will have to show the full backdated debt on their books at a difficult economic time and will go out of business.
The Chancellor is being asked to eliminate this problem in the Budget by freezing the rateable values of the port premises at 2005 levels. Revaluation takes place every five years, with the next one due to come into force next year. The freeze would allow firms to prepare for the additional costs, instead of facing going bust.
If Mr Darling’s distinctive black eyebrows are rising at this proposal, he should be reminded that he has already agreed to spread a 5% rise in the Uniform Business Rate over three years.
The maritime trades are part of Merseyside’s history – but must be given the chance of a future, too.





