To ask the Secretary of State for Communities and Local Government what steps the Valuation Office Agency took to implement the Government’s policy that 2000 businesses within the hereditaments of the statutory ports should be separately rated in 2005. (284997)

From 1 April 2005, the statutory ports (i.e. the operational land and buildings occupied by the statutory port operators) were removed from prescribed assessment under paragraph 3 of Schedule 6 to the Local Government Finance Act 1988. Instead, their rateable values were assessed by the Valuation Office Agency using conventional valuation rules (in paragraph 2 of Schedule 6 to the 1988 Act).

Where a company has exclusive use, under a licence or other agreement with the designated port operator, a separate assessment is appropriate. This is a principle that applies right across rating and is not limited to ports. This is a long established principle for assessing properties both pre and post 1 April 2005.

The change in how the port operator was rated did not affect the principle determining whether the operator or occupier was liable to rates. There have been separate assessments at ports for a number of years where the circumstances justify it.

To ask the Secretary of State for Communities and Local Government when the Valuation Office Agency (VOA) notified port operators in each scheduled port that they were to be separately rated for business rates; how they were notified; what consultation the VOA held with operators in each port on the matter; and what assessment the VOA made in each case of the business consequence to businesses of the changes. (284998)

On 22 May 2006, the Valuation Office Agency initiated the review of all major ports to ensure consistency of treatment across the ports themselves and with the rating of similar businesses outside. They approached the port operators for full details of all port occupiers and—as the information they required was supplied—started to inspect all the ports as part of the conventional rating process. A number of instances were found where a property that constituted a separate rateable property was either not assessed at all or was included in the overall port assessment.

Occupiers were initially contacted in writing, by telephone or in person. Depending on the circumstances of the case, more than one inspection may have been required. As part of the review process the Agency highlighted the potential effect of the ports review to the occupiers affected.

To ask the Secretary of State for Communities and Local Government what business rate assessments the Valuation Office Agency made on port operators in 2005; when it decided to change these assessments; and for what reason it so decided. (284999)

The Valuation Office Agency assessed 55 large statutory ports and container terminals as part of the process of compiling the new rating lists for the 2005 revaluation. The original assessments in the 2005 list were produced in good faith on the basis of this information.

It was only after the 2005 rating lists were compiled that, through routine rating work in the port of Southampton, it was established that further properties should be separately assessed. Immediately, on 22 May 2006, the VOA initiated a review of all major ports to ensure consistency of treatment across the ports themselves and with the rating of similar businesses outside.