PORT companies faced with big increases in their business rates will be thrown a lifeline today when MPs order the Government to save them from possible bankruptcy.

A report by a powerful Commons committee will fiercely criticise ministers’ response to the crisis, triggered by a shake-up that landed firms with shock tax bills backdated three years.

Some port companies in cities such as Liverpool and Hull have already gone to the wall – and many others are sacking workers as they struggle to pay.

The impact has been less severe in North East ports, but the overall bills for companies has leapt sharply at Teesport – from £3.26m to £3.6m – and Port of Tyne – from £3.03m to £3.38m.

The impact has been much greater than those figures suggest, because the bills are backdated to April 2005.

Today’s report, by the Treasury sub-committee, sides entirely with the port companies in the dispute, by: ● Attacking the Government’s proposal to allow higher bills to be paid over eight years, warning it could still leave “many firms technically insolvent”; ● Recommending the introduction of the new rates system be delayed until 2010; ● Urging the Government to step in to ensure firms that have already paid rates to their port operator do not end up paying twice; ● Blaming the fiasco on the Valuation Office Agency’s “failure to communicate changes promptly and effectively with port businesses”.

The conclusions heap pressure on Local Government Minister John Healey, who has refused further concessions beyond spreading payments over eight years.

He will be urged to give way as soon as next Wednesday, when another Commons debate on the issue is planned.

The revamp ends a system under which the port authority was responsible for the payment of business rates and had collected them as part of the rent charged to leaseholders.

The switch to a direct levy on companies, based on the size of their premises, has been backdated to April 2005 because the law demands fiveyearly valuations.

Mr Healey has repeatedly insisted it would be impossible to undo revaluation from 2005 without bringing legislation before Parliament.

He has also declined to get involved in disputes with port operators who have demanded contributions from companies for rates paid since that date.