Charities are set to get free business rates in Dudley borough as the council looks to commit continued support to voluntary organisations.

In a report to the council’s cabinet meeting on December 5, members are set to take the decision to retain the existing eligibility criteria and amount of rate relief awarded to charities and other eligible organisations.

It means the council will continue to cover the cost of £240,000 worth of business rates for charities and other not-for-profit organisations in Dudley borough to support the work they are doing.

Councillor Pete Lowe, cabinet member for finance and deputy leader, said:
“With continued reduction in government funding, we are experiencing severe budgetary pressures and we have to look at every possible way to make savings. For this reason, we carried out a review of the current Business Rates Discretionary Rate Relief policy to see if any savings for the council could be made.

“However, as part of our ongoing commitment to be a community council we recognise the importance of the charity and voluntary sector and will be looking to continue covering business rate costs as before.”

More than 300 organisations across the borough were informed of a review of the policy back in February. The cabinet will be asked to agree to continue supporting the charities and agree to a minor amendment to the current policy to award entitlements for one financial year at a time, rather than indefinitely as is the current position.

A mandatory relief already covers 80% of the business rates for charities and community amateur sports clubs, which is funded 50% by the council and 50% by the government.

There are two types of additional Discretionary Rate Relief at Dudley which are Top Up relief and Pure relief.

Top Up relief is 20% relief on top of the 80% mandatory relief which is again paid half by the council and half by the government. Currently 309 properties in Dudley borough are awarded this relief with a total value of £215,000 paid by the council.

Pure relief is awarded to not-for-profit organisations whose main objectives are philanthropic, religious or good causes concerned with education, social welfare, science, literature, the fine arts or recreation. The maximum award is 100%, funded 50% by the council and 50% by the government. In Dudley 19 properties are awarded this relief at a total cost of £25,000 to the council.