If you run a non-profit organisation and you've been refused rates relief by Greenwich Council, then this information might help you.... Charities in Greenwich get automatic business rates relief - its called 'mandatory' rates relief but if you are a non-profit, you have to apply to the Council for 'discretionary' rates relief. This process is lengthy and subjective. Greenwich Communication Centre is a Community Interest Company limited by guarantee - a social enterprise - a company with charitable purposes. GCC has continually had its applications for discretionary rates relief refused despite the massive social value it provides to the Borough which includes an in-kind investment in excess of £50k per annum. Something smelt fishy, so, we sought the support of the Bar Pro Bono Unit who instructed a barrister to look into our problems with the Council and he found, in our case, that the Council had acted unlawfully. There were 2 key areas of law where the Council had fettered it's discretion and circumvented the intentions of Parliament and therefore made unlawful decisions. The Council cannot disable themselves from exercising a statutory discretion by the over-rigid application of self-made policies, or by mis-interpreting the law which applies to a decision. In our case they unlawfully fettered their discretion by applying a policy which is contrary to S.47 of the Local Govt Finance Act. What's more they expected GCC to provide benefit to ALL residents of the Borough - a test which would not be applied to charities. How irrational for the Council to require a higher standard of community benefit from a non-profit than it does from a charity which is automatically entitled to significant rate relief! #Fail
Update: Interesting letter received from Greenwich Council Legal Services following our application for a Judicial Review last year: "the Council has reviewed the matter and has decided that it would be more proportionate to withdraw its earlier decisions and consider your application for discretionary rates relief afresh". Well that's all very well, but will your fettered review processes be any different? Have you learnt from your mistakes? Do you understand social value investment? We'll see ...
