Ports firms in Wales will be disproportionately hit by backdated bills for business rates, it emerged today.
The UK Government today confirmed that from 31st March 2012, businesses in England unfairly hit by backdated tax bills will be able to recoup their losses.
The support will not be available to businesses in Wales because the Welsh Labour Government refused to pay off back-dated tax bills despite receiving the funding to do so from the Conservative-led Coalition.
Ports businesses in England and Wales were hit by backdated tax bills in 2008 because it was determined that the businesses themselves would be liable rather than the port operators. These unexpected and retrospective tax bills were imposed on businesses at the height of the recession.
Due to the Welsh Labour Government’s failure to provide support, businesses at ports in Wales will be at a competitive disadvantage to those in England.
Janet Finch-Saunders AM, Shadow Minister for Local Government, said, "I am disappointed that Labour Ministers are content to stand by and watch Welsh ports hit by taxes imposed by Gordon Brown’s Government in Westminster.
"Businesses at ports around Wales’ coastline will continue to be unfairly penalised by this tax bombshell through no fault of their own.
"The Welsh Labour Government has refused to reimburse Welsh businesses hit by retrospective taxes, despite having received the funding from the Conservative-led Coalition.
"This sends a very negative message to any business considering investing and creating jobs in Wales.
"At a time when many businesses are being forced to make savings to remain competitive, these Welsh firms will be at a disadvantage compared to their rivals in other parts of the UK.
"The Welsh Government needs to start working constructively with the Conservative-led Coalition to deliver for Wales rather than playing politics with people’s livelihoods."