Join our campaign – ‘Don’t Price Us Out’
Times are tough for council finances, and small businesses, charities and community groups are suffering.
We believe these organisations have a vital role to play in making Luton a safer, happier and healthier place to live.
That’s why we are launching a new campaign, ‘Don’t Price Us Out’, in support of people being hit by the huge rent rises being imposed by Luton Borough Council.
These groups are finding themselves at the sharp end of the council’s mission to cut costs; either facing new rents they simply can’t afford, or being forced to move for big businesses who can pay more.
In the past few weeks we have reported how the St Augustine’s Scout group, in Icknield Way, was told their ground rent for the hut they own was going to go up by 5,000 per cent.
And how independent trader Dave Barford, of My Bike Shop in Birdsfoot Lane, was facing having to move out of his shop to make way for a new branch of a betting chain.
Now Luton’s Age Concern shops face their rent doubling.
Gary Birt, manager of the charity’s Farley Hill shop, said: “We are not just a charity shop here, we’re part of the community.
“Customers are shocked and worried – we know things are tough for the council but it would hit the community hard if the shop closed.”
Profits from the shops go directly into providing services in Luton such as food parcels, emergency heater loans and a telephone befriending service that helps around 90 people in Farley Hill.
Colette McKeaveney, director of Age Concern in Luton, said the council’s actions were “illogical”.
The council says it expects to make an extra £80,000 a year from raising the rents.
Asked if concessions could be made for businesses or organisations that benefit Luton communities, director of commercial and transformation services, Robin Porter, said the authority had to make tough decisions.
“It is essential we examine all services and income opportunities, without exception,” he said. “Raising income by charging market rates will help to protect essential front line services from the latest cuts, such as protecting vulnerable children.
“It is also important to stress that a new fund will be set up for voluntary sector organisations who can demonstrate genuine need and provide a high level of value to the community.”
>> Click here to sign our petition or sign up at the Luton News offices, 39 Upper George Street, Luton.
>>Here are the full answers from Robin Porter, director of commercial and transformation services, to questions put to him by Luton Today...
Question: Is it possible for businesses or organisations that benefit Luton residents to pay below market rates?
Answer: These are difficult financial times and we must make tough decisions to achieve a balanced budget and protect key services for local people, particularly with the massive budget cuts imposed on us by Central Government, where we have to make savings as high as £48 million over the next three years.
Therefore it is essential we examine all services and income opportunities, without exception. We have no choice but to move towards charging a market rent for all buildings, previously no such policy had existed, meaning rent was being charged inconsistently, and sometimes unfairly, with some organisations being charged well below market rates. Raising income by charging market rates will help to protect essential front line Council services from the latest cuts, such as protecting vulnerable children.
Question: Has the council taken into account the social or health benefits of shops/groups such as Age Concern, My Bike Shop and St Augustine’s scout group when reviewing rents?
Answer: While our absolute priority is protecting frontline services, we will still provide as much support as possible to local business owners and if necessary we will work with them to find alternative sites. It is also important to stress, that as part of the policy, a new fund will be set up for voluntary sector organisations who can demonstrate genuine need and provide a high level of value to the community. Those organisations approved will receive funding support towards their rent charges. The detail and process for obtaining this fund is currently being established so there will be no change in the rent any organisation pays until at least April 2013 when we expect the fund to be in place.
Question: How much extra income is the council anticipating to make from reviewing rents across the town?
Answer: Throughout the year we are constantly reviewing rents of properties across the town, however we estimate that additional income of at least £80,000 will be raised per annum.
Question: Have impact assessments been undertaken on the people that would be affected were these shops/groups to shut down? For example children who attend scouts, elderly people who benefit from services provided by Age Concern, such as the telephone befriending service.
Answer: An impact assessment has been undertaken and we are aware some organisations may face difficulties, as they have been accustomed to paying below the market rate. That’s why we are in the process of setting up a fund which aims to minimise the impact on those organisations that are providing benefit to the citizens of Luton and genuinely cannot afford the proposed rent for the property they occupy. We will be conducting an impact assessment on the new fund before it is established.
5.) The council’s Social Justice Unit had concerns about the new Charging for Occupation of Property Policy, and recommended further consultation. Is this consultation taking place?
Question: As noted in the Executive report, further consultation is taking place with individual organisations and groups so we can gain a better understanding of the effect the rent rise will have on their operations and to examine what support we can offer to assist them.
>> Click here to sign our petition or sign up at the Luton News offices, 39 Upper George Street, Luton.
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Tuesday 21 May 2013
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