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Rent increases for community and voluntary groups

Recap and update:

On 10th January this year the Executive of Ipswich Borough Council  discussed a report headed “Rent Discounts to Voluntary and Community Organisations”.

This Orwellian title was probably chosen to disguise the fact that the Council’s  intention was, in fact, to greatly increase community rents.

The basic proposals were a) to charge the full market rent on the properties currently used by these organisations  b) to offer a discount on this and c) to put in place transitional arrangements to lessen the impact of these large increases.

The council’s original report recommended a 50% discount, but revised recommendations on the night saw an 80% discount proposed (referred to as Option One in the report.) This may seem a generous amount but because many of the current rents are peppercorn, the groups involved will see an increase of well over a thousand pounds and in some cases, much more.  One of the worst hit will be ISCRE  (Ipswich and Suffolk Council for Racial  Equality); under Option One their rent could  increase by £3,200 just at the point where they are already being hit by reduced funding.

The Council acknowledge (paragraph 4.2) that the provision of Council owned assets for use by voluntary and community organisations helps to ensure that the facilities are available to help facilitate community participation and that this contributes to the Transforming Ipswich priority, “Strengthening the Community” and yet they appear to be determined to push through rent increases that will most decidedly weaken community effort!

To add insult to injury the consultation letter sent out in the last few days states that the tenant shall be responsible for the landord’s legal costs. The Maidenhall Resident’s Association for instance has been told that they will have to pay approximately £250 AND “a fair proportion” of any building insurance that the council arranges (amount not stated)

The Council has proudly announced that no group will pay a rent increase in the first year because a grant will be given to cover any increase, but they have failed to mention that community groups would be stung for the legal costs of drawing up the new leases.

The affected groups now have until 10th February 2012 to respond and the matter will go back to the Executive on 13th March.

If you have been helped by groups like the Ipswich Furniture Project, ISCRE, Maidenhall Residents Association, Chantry Residents Association, Whitehouse Residents Association, the Waterfront Community Group etc then please write letters to the local Press and to the Council and make your feelings known at the new Area Committees: after all this is certainly a case where decision-making  should be brought closer to the people.

Ipswich Community Radio (ICR) kindly gave me a chance to speak on their Breakfast Show yesterday, on this issue, so they are asking for comments too.

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