Introduction
Section 47 of the Local Government Finance Act 1988 gives Councils the power to grant rate relief to organisations that meet certain criteria.
Councils have discretion to grant rate relief from all or part of the amount of non-domestic rates payable and any relief granted is used to reduce the amount the organisation is required to pay in business rates.
The Council recognises the valuable role that voluntary organisations can and do play in the life of the community. It is committed to providing high quality services to Rugby residents and acknowledges the way voluntary groups can complement these services.
The following sections set out the factors we will consider when deciding whether to grant relief, and the way in which we will decide the value of any relief granted.
We will deal with each application for relief on its merits and treat all organisations that apply equally and fairly.
Criteria
The criteria to be used in deciding whether to give discretionary rate relief are designed to assess how an organisation’s work helps achieve the Council’s priorities and meet the community’s need for services and facilities.
The Council will consider applications for relief where the following key criteria are met:
- the ratepayer is a non-profit making body;
- the property is used by the ratepayer wholly or mainly for charitable, philanthropic or religious purposes, or concerned with education, social welfare, science, literature or the fine arts; or
- the ratepayer uses the property wholly or mainly for recreation by a non-profit making club or society.
- The ratepayer occupies the property wholly or mainly to provide services that would otherwise have to be provided by the local authority.
Registered charities in receipt of mandatory relief of 80% can apply for discretionary relief on the remaining 20% of their bill.
Other organisations that meet these criteria, such as voluntary organisations and not-for-profit sports clubs, can apply for relief of up to 100%.
The Council will not normally consider applications from organisations in the following categories;
- National Chairty Shops
- Organisations whose objectives are wholly or mainly concerned with education and which are already receiving Mandatory relief (80%)
- Administrative offices of national charitable organisations which are already in receipt of Mandatory relief (80%)
- Organisations which have a commercially operative bar within the relevant property serving alcohol.
- Organisations that have an audited income of more than £1 million per annum.
The following additional criteria will also be applied where applicable:
Equal opportunities - The organisation should have an appropriate policy that aims to give equal opportunities to both any employees it has and to people in the community it services. A copy of a formal policy should be submitted with the discretionary relief application. If a written policy is not available, evidence must be provided that the organisation does not unfairly discriminate against any section of the community.
Open access to membership - Membership should be open to all sections of the community. There may be some restrictions placed on ability in sport if this is appropriate, however, in general membership should not be exclusive or restrictive.
Membership fees – These must not be set at such a level as to exclude the general community. The Council would expect applicants to state their current membership rates, and to illustrate that the criteria used to consider applications for membership is consistent with the principle of open access.
Applications will be dealt with more sympathetically if an organisation can demonstrate it actively encourages membership from, or offers support to, particular groups in the community such as young people, women, older people, persons with a disability or ethnic minorities.
Beneficiaries of services or facilities - The organisation should provide training or education to its members, and non-members such as young people, people with disabilities, or retired people. The organisation should provide facilities that indirectly relieve the Council of the need to do so or enhance and supplement those it does provide.
Affiliation to local or national organisations - The organisation should be actively involved in local/national development of their interests.
Financial support from external sources - Copies of the organisation’s last two years’ audited accounts must be provided with the application to assist the Council in assessing the ability of the applicant to meet the costs of rates in the absence of additional rate relief. It should be made clear on the application form the level of funding given to the organisation by the Council and or any other external bodies
Amount of relief
As noted above, the Council has the discretion to allow relief at any rate up to 100% of the business rates charge, less any mandatory relief an organisation is entitled to.
Entitlement will be assessed against the criteria and factors described above.
Period of award
The Council will decide the period that relief will be awarded for depending on the circumstances of the application. The minimum period of relief that can be awarded is one day.
Unless stated otherwise, relief will be awarded from the start of the current financial year or the date liability started, whichever is later. The Council will periodically review the relief and invite renewal applications.
If after review, the relief is no longer applicable and to be cancelled, the Council will write to you to notify you. The relief can be cancelled back to the date it was no longer applicable, but will not be cancelled earlier than the start of the previous financial year.
Relief may be backdated to the beginning of the current financial year
How to apply
A claim must be made on an approved application form which is available on rugby.gov.uk/business-rates or on request.
It is the responsibility of the organisation applying for relief to provide sufficient information and documentary evidence to support its application.
Completed applications, including all necessary supporting documentation, should be sent to:
Rugby Borough Council, Town Hall, Rugby CV21 2RR
Subsidy Control
Please note that any award of discretionary rate relief must comply with the UKs Subsidy Control Act 2022 (replacing EU state aid)
Financial aid is allowed under the de minimis rules if the total amount of funding received by an organisation does not cumulatively exceed £315,000 over a three-year period.
Any assistance you have received, or are due to receive, from a public body may count as de minimis. This could be any aid, grant or support from central, regional or devolved governments, agencies, or a local authority.
Right of appeal
If you disagree with a decision made under this policy, you may write and tell us why you think our decision is wrong. If you are able to provide further information to address the reasons given as to why your application was unsuccessful, you may do so and we will reconsider our decision in the light of the new information.
If the Council’s decision is still not to award relief, you may ask for a full review. The Chief Officer for Finance and Performance, who is not involved in the original decision, will check your application and supporting evidence thoroughly, taking into account any further information given in your appeal letter, then decide whether the policy have been properly applied in your case.
The Chief Officer has the authority to
- confirm the decision;
- change the decision and award you more discretionary rate relief; or
- change the decision and award you less discretionary rate relief.
The Council will write to tell you what has happened, normally within 7 days of the decision.
There is no further right of appeal against a decision made.