PORT bosses have welcomed news the new Government is to abandon controversial plans to hit firms in Southampton docks with £3.6m in back taxes.

As reported in previous editions of the Daily Echo, the Cameron-Clegg government has moved quickly to confirm pre-election pledges it will cancel millions of pounds 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 jobs and 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 spokes-man Lord Bates has given fresh hope the controversial backdated element of the taxes will be ditched.

“Businesses based in ports play a vital role in Britain’s export and import trade, yet many faced the prospect of insolvency thanks to Labour’s unfair ports tax,” 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.”

Port director Doug Morrison said: “When they were in opposition they were pretty vocal about the port rates so it would have been difficult for them to move away from it now.

“If the retrospective element is repealed then it is great news for all the companies.

“As a company ABP has always struggled with the concept of that you can go back to 2005. It’s unfair. You can accept an increase in charges. You can work that out with your customers but to do it retrospectively is unfair.”