Communities Secretary Hazel Blears has hinted the Government may be prepared to abandon plans to backdate rate demands on portbusinesses in Hull.

Speaking in the Commons, Ms Blears failed to defend the decision to backdate the demands when tackled on the subject by Liverpool MP Louise Ellman.

Under the changes, which were introduced in the city earlier this year, Hull's port companies face a collective demand of almost £20m in rates, which threatens to put many firms out of business with the loss of thousands of jobs.

Earlier this week, Treasury Minister Stephen Timms said no impact assessment had been carried out into the effect the backdated demands would have on jobs across the country.

In the Commons, Ms Ellman, who also chairs the Transport Select Committee, tackled Ms Blears on the issue.

In reply, Ms Blears said: "I am very conscious of this issue and meetings are going on as we speak to look at this, to assess the impact and to see what steps forward might be taken.

"She (Ms Ellman) has raised an important issue, particularly in relation to the retrospective demand."

Speaking after the exchange, Ms Ellman said she was encouraged the minister had recognised the importance of the issue.

"I'm hopeful that a solution can now be found," she said.

David Johnson, spokesman for the Humber Dock Rating Group, a pressure group set up to fight the new charges, gave Ms Blears' remarks a cautious welcome.

He told the Mail: "This is the best news we have had for quite some months on the issue.

"The biggest problem we have faced is getting it in front of a minister. Now that has happened, hopefully the minister will do something about it.

"It has to be good news for port operators across the city."

A spokesman for the Communities and Local Government Department said firms with any queries about the charges should contact the Valuation Office Agency.