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CHARITIES CRIPPLED BY RENT HIKES
Report attacks council’s policy of charging for lifeline groups’ premises
WESTMINISTER Council’s controversial policy of charging commercial rents on properties let to charities and voluntary organisations is threatening their future, a damning report has warned.
The investigation was commissioned by the council after City Hall faced public outrage for ordering rent hikes at a string of nurseries, including a popular Lisson Grove service, which at the time it was claimed would “milk the poorest parents” because of the knock-on effect on fees.
Consultants at PricewaterhouseCoopers slammed the council’s property policy towards the 90 non-profit organisations housed in its buildings.
Among their key findings were:
* a lack of suitable, affordable and accessible premises;
* rent policy creates an “adverse” impact on vulnerable customers through higher fees;
* complex and disjointed management;
* lack of confidence in the council’s internal funding and property decision-making processes.
The properties rake in more than £2milliona year in rent for the council, the report revealed.
MP Karen Buck has called the findings “deeply worrying” at a time when the borough’s charities and voluntary organisations have to dig deep in the recession.
The report has made a number of recommendations intended to give charities more support. They include a review of all tenancy agreements, and the creation of a specific strategy for premises used by such groups.
Ms Buck, who represents Regent’s Park and Kensington North, said: “This is deeply worrying. We need swift action before high rents cripple more local voluntary organisations. Organisations like Westminster Children’s Society have to find tens of thousands of pounds to pay rent to the council and this means childcare fees have to go up, even in the recession. Small groups are struggling to pay their rent and have to cut back on services and jobs as result.”
Last year a further two nurseries in Lisson Green and Carlton Hill managed by Westminster Children’s Society (WCS) were also stung with higher rents, forcing the council to concede to a five-year rent freeze, but other groups have not received such assurances.
Alastair Gilchrist, Westminster Council’s strategic director of resources, said: “We recognise that the current rent levels are an issue for some voluntary organisations and this is why we commissioned this completely robust, independent review.
“The voluntary sector plays a very important role in providing key services to local communities and we are working to resolve this issue. In the meantime the children’s services department have been supporting all nurseries and early years providers who have come to them for financial support.” |
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