Council’s charity cash blunder

OLDHAM Council has been forced into an embarrassing U-turn over a bungled decision to charge Dr Kershaw’s Hospice an extra £8,000 a year for rates.

Plans to charge the Royton hospice and its three charity shops in Lees and Shaw business rates from April, next year, were revealed in a shock letter sent to trustees.

Local MP and Government minister Phil Woolas condemned the decision and wrote to council chief executive Charlie Parker to protest.

However, hospice bosses were told over the weekend that they do not need to pay the extra £8,000 a year.

Mr Parker said the blunder was down to an “administrative error.”

The move would have put an extra burden on hospice fund-raisers, who face a constant battle to raise £1.3 million each year towards the £1.7 million running costs.

Mr Parker said the “administrative error” had been made in relation to Discretionary Rate Relief (DRR) for charitable organisations.

He said DRR was part of a package of financial assistance offered to local businesses and charities, which was regularly reviewed.

“The decision to withdraw the award to Dr Kershaw’s Hospice was incorrect. It has enjoyed this relief since 1988 and it will be re-instated with immediate effect,” said Mr Parker.

The hospice has seen donations fall by 40 per cent during the credit crunch.

Mr Woolas understands that more letters have gone to other local charities, and said in his letter to Mr Parker: “If my information is correct I not only find your decision astonishing and harsh, but completely out of touch with the wishes of the vast majority of the local population.

“I cannot understand the logic of your council setting aside money to help local companies and organisations through the credit crunch, and then penalising vulnerable organisations who are particularly hardest hit when money is tight, by imposing this rates bill on them. I think this is appalling.”

A relieved Dr Kershaw’s appeals manager, Brian Hurst, said the decision to re-instate discretionary rate relief to the hospice was wonderful news.

He added: “We are so pleased the council had a rethink on this, £8,000 is a heck of a lot of money to us, it’s a whole two days’ running costs, and it will be a great help not to have to raise it.”

Saddleworth parish councillor and local campaigner Ken Hulme described the possible removal of discretionary rate relief from some businesses and charities as “petty-minded and mean,” and highlighted spending of “more than £500,000 doing up councillors’ meeting rooms and offices,” and the £1 million-plus per year due to go on councillors’ allowances and expenses.


HAVE you had a similar letter from the council? E-mail janbarker@oldham-chronicle.co.uk .