Bradford Council is looking to save money by reducing its “over-generous” discretionary business rate relief for not-for-profit organisations.
At present, some organisations get 80 per cent relief out of the local authority’s budget. But under new proposals, it will be granted on a sliding scale depending on what groups do to support the district.
Mandatory relief goes to registered charities and community amateur sports clubs. This is funded by central Government and will not be affected by the Council’s proposals. Among the groups that would be affected are sports and social clubs.
Proposals to identify savings from discretionary rate relief will be considered at a meeting of the Council’s executive on Friday, February 11.
Council leader Councillor Ian Greenwood said: “Bradford has been very generous in the past and will contribute over £271,000 to the relief this year. Clearly this has to be reviewed and we are considering proposals to introduce a sliding scale of relief depending on how much the individual groups support the district’s priorities and help the local community.”
Under current rules, discretionary rate relief is 25 per cent funded by the local authority and 75 per cent by central Government.
Councillor Anne Hawkes-worth, leader of the Council’s Conservative group, said: “Newcastle-upon-Tyne Council collects a comparable amount of business rates to Bradford, but provides a fifth of the relief that we do. Bradford is clearly over- generous when compared to other councils. I would like to see a scheme that protects very small organisations which currently benefit from discretionary relief as I would not wish to see them become unviable.”
Councillor Jeanette Sunder-land, leader of the Council’s Liberal Democrat group, was concerned about what impact the changes would have. “What this impacts on is local football and cricket clubs for who it would be quite a big concern to suddenly get a bill from nowhere for a couple of thousands of pounds,” she said.
Carlton Smith, chairman of Sunbridge Road-based Bradford Community and Voluntary Service, said: “We appreciate the financial pressures Bradford Council is under, but it is a further retrograde step at a time when charities’ and voluntary groups’ income is under threat from all directions, and just when people are relying on their services even more.”
If the proposals are approved, new applications for discretionary rate relief would be subject to the changes from April.
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