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Charity accuses council of ‘blocking access’ to relief rate
A charity is accusing Bristol City Council of “blocking access” to relief funds that could cost the future of the organisation.
The council, however, denied this claim and highlighted recent legislative changes to rate reliefs as a reason for their decision.
For over a decade, the Matthew Tree Project has provided support to thousands in the city battling homelessness, mental health crisis and poverty.
is needed now More than ever
But the charity is currently in what they call a “difficult period” as they await decisions on over £200,000 of active funding applications.
The charity’s crisis has further deepened after the council refused them access to small business rate relief, a concession which, according to the government website allows, businesses owning properties with a rateable value below £12,000 to pay zero business rate.
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The Matthew Tree Project applied for a small business rate relief for their property in Filwood Broadway which, according to the charity, has a rateable value of just £7,000. Despite being £4,000 lower than the value stated on the government’s website, the charity was denied the expected relief and instead offered mandatory charity relief.
If applied, the mandatory charitable relief would provide an 80 per cent monetary relief to the charity, whereas the small business rate relief could provide them with 100 per cent relief. The 20 per cent difference could be the tipping point between continuing and closing down for the financially stretched charity.
On August 1, the charity filed a complaint with the council, hoping to understand the grounds for the relief’s refusal. In a letter responding to the complaint, a council spokesperson clarified the “order” in which business rates are applied.
The Matthew Tree Project has a food growing site in Brislington
They explained: “The order in which reliefs are applied is not at the discretion of the local authority. Specifically, regulations ensure that mandatory charitable relief takes precedence over small business rate relief (SBRR).
“If a property qualifies for both, the mandatory relief must be applied first, which may result in the property no longer meeting the criteria for SBRR. This is a statutory requirement and not a matter the council can override or alter.
“Section 61 of the Local Government Act 2003 does not explicitly outline a hierarchy for awarding business rate reliefs, but instead, it amends Section 43 of the Local Government Finance Act 1988 to introduce provisions for rate reductions under specified conditions—primarily relating to small business rate relief (SBRR).”
But the charity’s chief executive Mark Goodway, in a following complaint insisted that there was “no statutory hierarchy of reliefs” that obliged the council to override a ratepayer’s preference on which relief rate they wished to pay.
The Matthew Tree Project was awarded Crisis Support NPO of the Year 2023-2024 at the South West of England Prestige Awards
He added: “The council is therefore empowered to disapply mandatory charitable relief where the ratepayer requests this, and apply small business rate relief instead, provided the eligibility criteria for small business rate relief are met, which they are in both of our cases.”
Apart from having a property with a rateable value lower than £12,000, the only other criterion as per the government’s website to be eligible for SBRR, is that the business only uses one property.
With 10 Filwood Broadway being the charity’s “sole or main property in Bristol since 2013” with a rateable value of £7,000, Goodway is confident of their eligibility.
“Bristol City Council’s position is that they must apply charity relief and cannot consider SBRR,” Goodway added.
“But there is nothing in current law or guidance that prevents a ratepayer from electing SBRR instead, as long as eligibility is met.”
Explaining the grounds for their decision in a statement to Bristol24/7, the council highlighted a series of recent legislative changes, including the Non-Domestic Act 2023, that had influenced their decision.
A council spokesperson said: “Over the years, central government has introduced a raft of legislative changes to rate reliefs with the aim of supporting businesses and certain sectors in the short or long term.
“The current legislative framework stipulates that, where both charitable relief and small business rates relief apply, only charitable relief is to be considered.
“While we understand this can be frustrating for organisations seeking further support, the council must follow the provisions set out in the current legislation.”
The council further clarified that the charitable relief has been in place since 1990, while the small business rate relief that the Matthew Tree Project are hopeful for, was only introduced under section 61 of the Local Government Act 2003.
In more recent changes, the council shared details about the Non-Domestic Act 2023, paragraph 9 of which “explicitly states that where both charitable relief (paragraph 2) and small business rate relief (paragraph 4) apply, the rates liability is calculated with charitable relief only”.
In his stage 2 complaint to the council, Goodway states the charity’s intentions to appeal to higher authorities if the next response is unsatisfactory.
He added: “If we are unable to resolve this matter at stage 2, we will be left with no choice but to file a statutory appeal to the Valuation Tribunal for England, and to submit a formal complaint to the local government and social care ombudsman for procedural unfairness and maladministration.
“We remain committed to working with the Council to reach a fair and legally sound outcome.
“This is not about asking for special treatment — it’s about asking to be treated fairly under the law.”
All photos: The Matthew Tree Project
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