PORT companies in Southampton are breathing a sigh of relief after the Government said it would keep pre-election promises to cancel millions of pounds worth of rates bills.

A total of 24 firms in Southampton found out in late 2008 that they faced a collective bill of £3.6m in back taxes after the then Government changed the way rates were calculated and backdated the higher charges to 2005.

Local business leaders protested the move would hit businesses in the port, which 12,000 people depend on for a job, just as the recession started to bite. Nationally, the charges totalled £33m and were estimated to put 150,000 jobs at risk.

Now Conservative spokesman Lord Bates has given fresh hope the controversial backdated element of the taxes will be ditched.

He said: “I am very pleased that the new Government will halt these botched and retrospective tax hikes as one of its immediate priorities, saving jobs and firms from going under.”

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