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Lords throw a lifeline to docks over tax rise

Lords throw a lifeline to docks over tax rise Lords throw a lifeline to docks over tax rise

PLANS to hit port firms in Southampton with a £3.6m back taxes bill may now be scrapped after a crucial House of Lords decision.

Just hours after it emerged the Government was to hike shipping taxes, peers threw beleaguered port firms a lifeline. They voted against backdating rates.

The Lords voted to amend a Bill in a step which could stop the Government making firms bear the burden of its own errors in calculating the rates.

Although the amendment, which was passed by 184 to 124 votes, still faces a number of obstacles before becoming law, it was hailed as a “positive step” for port businesses.

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City bosses were anxiously waiting to see how the 24 affected Southampton companies will cope with the unexpected extra debt as recession hits the UK.

Companies from car carriers to cargo handlers are faced with paying the huge sum, totalling £3,610,788.12. It is what the taxman said was now owed for the period stretching back to 2005 after the Government changed the way the way rates are calculated. It is over and above any money already paid before the changes and does not include docks owner ABP’s rates, which total about £9.8m, a sum the company claims has nearly doubled in just four years.

Nationally, the changes are reckoned to cost business £33m and put 150,000 jobs at risk.

Port bosses have branded the steep rise “unfair”, while city politicians attacked its timing, coming just as firms are feeling the pinch of the economic slowdown.

A spokesman for docks owner ABP declined to comment due to uncertainty about the impact of the Lords’ decision.

Roger Thornton of shipping agents Wainwrights said: “It is good news for the port industry in general. It is ironic it comes in the same 24 hour period as the appalling news about light dues.

“Clearly there’s a lot of port operators around the country and including some in Southampton that this is welcome news for. It does have to go for a third reading but it is a positive step.”

Comments(13)

Linesman says...
10:19am Fri 12 Jun 09

Thinks!
Lords!
Could there be a conflict of interest?
Do they have to declare an interest when they vote?

southy says...
11:53am Fri 12 Jun 09

well some one going to pay for this lost off tax. probley end up coming out off the ordinary people pockets.

IanRRR says...
2:29pm Fri 12 Jun 09

southy wrote:
well some one going to pay for this lost off tax. probley end up coming out off the ordinary people pockets.
Who cares, so long as it stops the docks losing the trade that puts money in our pockets in the first place. Well done, you Lords!

Ben Doone says...
2:42pm Fri 12 Jun 09

southy wrote:
well some one going to pay for this lost off tax. probley end up coming out off the ordinary people pockets.
southy
It is not 'lost' tax. It is like your local authority coming to you and saying .. Dear Mr Southy, your house rates are currently £1,000 per year, . Unfortunately Mr Southy we should have been charging you £1,500 a year from 5 years ago so you owe us £2,500 in back tax. oh and by the way, next year your rates will go up 15% on the new £1,500 figure.
Sorry about this, sir, our mistake but pay up nevertheless!!
First of all I think you, and your neighbours, would be a bit aggrieved and, secondly, the Govt is unlikely to have budgeted for the extra income as it was a try on caused by the VOA's ineptitude. The House of Lords has now rectified the situation altho there is still one step to go. If the Lord's decision is upheld there will be no back payments but there remains the likehood of a significant rates increase for many port customers throughout the UK
So in a roundabout way you may pay more as the cost of your imported car/TV/fridge will go up as the extra tax cost will be fed through the distribution chain

southy says...
3:06pm Fri 12 Jun 09

yes ben it all ways comes back on the ordinary people. dont matter if a company or groups of companys have a massive profits sitting in there bank accounts that not going to be used at any time soon they all way past it on to the next one down, insted off saying for the good off the ecommony lets soak it up so the buck stops there. no they will pass it on and that even go's for governments.

Shame889 says...
3:26pm Fri 12 Jun 09

southy wrote:
well some one going to pay for this lost off tax. probley end up coming out off the ordinary people pockets.
You do realise that income tax paid by individuals is far from the only revenue the government has, right?

Ben Doone says...
4:29pm Fri 12 Jun 09

southy wrote:
yes ben it all ways comes back on the ordinary people. dont matter if a company or groups of companys have a massive profits sitting in there bank accounts that not going to be used at any time soon they all way past it on to the next one down, insted off saying for the good off the ecommony lets soak it up so the buck stops there. no they will pass it on and that even go's for governments.
Southy
To be fair, it is the duty of every commercial company to make a profit, otherwise they go out of business. The Govt will tax profits by way of Corporation tax and some of the remaining profits may well be distributed as dividend payments to share holders. Many of these shareholders are pension funds who rely on profits distributed as dividends to pay pensions. The system is called capitalism and has generally worked well for msny years. After all most of us are financially (if not spiritually)better off than our forefathers.

southy says...
7:58pm Fri 12 Jun 09

no ben capitalism only benifits the well off, the not so well off loses out all the time. yes its fair enough company to make a profit, but a lot off them are to greedy, then they wonder why people stop buying there products. or what ever they got to offer. a capitalist system only works for so many years then crashes each time its bigger than the last one, then it gos so far you hit the big one and out off the **** comes one off the 2 ex-streams. we seeing the start off this all ready. the ordinary people will only go so far then they start to kick back.

southy says...
8:57pm Fri 12 Jun 09

a s h s = ****

Ben Doone says...
11:26am Sat 13 Jun 09

southy wrote:
no ben capitalism only benifits the well off, the not so well off loses out all the time. yes its fair enough company to make a profit, but a lot off them are to greedy, then they wonder why people stop buying there products. or what ever they got to offer. a capitalist system only works for so many years then crashes each time its bigger than the last one, then it gos so far you hit the big one and out off the **** comes one off the 2 ex-streams. we seeing the start off this all ready. the ordinary people will only go so far then they start to kick back.
Southy
I don't want to get into a political or economic argument with you.
However Capitalism has been with us, in some shape of form, since the begiining of time. There will always be inequalities in life. You are probably better off than me financially but both us us are undoubtedly better of than our parents. Those 'developed' countries, almost all embracing the capitalist concept, have seen regular improvements in their standard of living, altho' there will always be peaks and troughs, and we are going thro' a trough at the moment but this will change. Even the Communist countries of China and Russia have now begun to embrace capitalism and making a success of it.
By the way can you define what you mean by 'the ordinary people' and also commercial 'greed'?

southy says...
3:54pm Sat 13 Jun 09

you right about capitalism has been a round a very long time its the oldest ecomony going, a socialist ecomony is the newest, and it seems to work better than a capitlist ecomony, you take the difference between china and russia both was full communist countrys, russia went capitalist while china went socalist. russia went for the worse, they sold off off there state own industry they have now got high employment, state corruption, poverty is on a alarming rise, crime in also going up fast, so much so some off the old states off russia that broke away that they are returning back to communist by the voting system. then you look at china who kept there state owned nationalize industry, low unemployment, poverty thats is still falling, crime also falling, state corruption is very low when you compear it with a capitalist world. the wealth off this country is shared out. capitalist system dont the money stays with a few.
the ordinary people are those at the bottom those who will only get a state pension or those that will only get a small private pension, like your self, commercial greed can amount to any thing has long it for them selfs. they dont care about any one else, most dont even care about what will happen to the great grand kids, for them its here and now and dont care about tomorrow. take abp look how much profit they make after the share holders got there part, and the tax man got there part, and the bit put to one side for development, they still want more they cut jobs, when they really should be thinking well we have this spare cash lets employ a few more people and share it more fairly and make the place run smother and faster.
you know the chineeze can turn round a ship in 2/3 of the time it takes here, all because they would prefere to have more people working on the quay side and ships than in the offices. the uk has to many cheifs and not enough indains.
just look at my self, i earned my money, me not being greedy person so i psss it on to the next person in line to give him a chance to earn his money, but still there if needed to cover or explain how to do some thing. whats the point in earning millions off pounds your not going to spend it in your life time.
we are only better off because in what our parents and grand parents belive in and what they done, and that was socialist thinking, if it was't for them in like forming the trade unions and true labour party, not like what we had blair and brown they are both torys. most people off today have forgotten thst and where they really came from, and thats all because since the 1980's they had greed brain washed into them. they for gotten how to share, and its this we need to get back to before its to late because next time it will not be a recession it will be a full blown depression worse than the one in the 1920's

Doctor Drutta says...
12:15am Mon 15 Jun 09

Has Captain
Jimmy Chuffntut's got anything to do with this?

veracity says...
9:39am Mon 15 Jun 09

southy wrote:
you right about capitalism has been a round a very long time its the oldest ecomony going, a socialist ecomony is the newest, and it seems to work better than a capitlist ecomony, you take the difference between china and russia both was full communist countrys, russia went capitalist while china went socalist. russia went for the worse, they sold off off there state own industry they have now got high employment, state corruption, poverty is on a alarming rise, crime in also going up fast, so much so some off the old states off russia that broke away that they are returning back to communist by the voting system. then you look at china who kept there state owned nationalize industry, low unemployment, poverty thats is still falling, crime also falling, state corruption is very low when you compear it with a capitalist world. the wealth off this country is shared out. capitalist system dont the money stays with a few.
the ordinary people are those at the bottom those who will only get a state pension or those that will only get a small private pension, like your self, commercial greed can amount to any thing has long it for them selfs. they dont care about any one else, most dont even care about what will happen to the great grand kids, for them its here and now and dont care about tomorrow. take abp look how much profit they make after the share holders got there part, and the tax man got there part, and the bit put to one side for development, they still want more they cut jobs, when they really should be thinking well we have this spare cash lets employ a few more people and share it more fairly and make the place run smother and faster.
you know the chineeze can turn round a ship in 2/3 of the time it takes here, all because they would prefere to have more people working on the quay side and ships than in the offices. the uk has to many cheifs and not enough indains.
just look at my self, i earned my money, me not being greedy person so i psss it on to the next person in line to give him a chance to earn his money, but still there if needed to cover or explain how to do some thing. whats the point in earning millions off pounds your not going to spend it in your life time.
we are only better off because in what our parents and grand parents belive in and what they done, and that was socialist thinking, if it was't for them in like forming the trade unions and true labour party, not like what we had blair and brown they are both torys. most people off today have forgotten thst and where they really came from, and thats all because since the 1980's they had greed brain washed into them. they for gotten how to share, and its this we need to get back to before its to late because next time it will not be a recession it will be a full blown depression worse than the one in the 1920's
suppoze i will have to comment on your lkatest ramblings
The chinese turn round ships quicker cause they generally have a full ship laod to deal with. some eurpean ports such as Soton have to deal with restows so the average rate per crane is affected
with regard to your money, can i be next in line so you can pass your cash on to me
if you give it all away howe you gonna cope. presume you will have to rely on the state to provide your pension?

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