Nottingham Post

Council to increase community centre rent to ‘fair market rates’

CONCERN RAISED OVER IMPACT ON GROUPS WHICH ARE ‘VALUABLE ASSETS’ TO THE CITY

- By JOSEPH LOCKER joseph.locker@reachplc.com @joelocker9­6

RENTS for community centres in Nottingham look set to be increased to “fair market rates” due to the council’s “very difficult financial position”.

Nottingham City Council says the changes to rent prices for the city’s 38 community centres come as part of its ongoing road to recovery, with a Government-appointed Improvemen­t and Assurances Board scrutinisi­ng its operations.

If the authority fails to appease the Government adequately, commission­ers may be sent in.

Kevin Clarke, leader of the Clifton Independen­ts and councillor for Clifton East, raised his concerns during a full council meeting.

He said: “It has come to our attention there is a proposal for a significan­t increase in the rent charged by the council for Nottingham city community centres.

“Can the portfolio holder inform us whether it is true the council is proposing to increase rents for Nottingham’s few remaining community centres and, if so, how does she expect them to continue to operate under these conditions?”

Councillor Neghat Khan, portfolio holder for neighbourh­oods, safety and inclusion, said the council was in a “very difficult financial position” and added that it could not maintain its current low-cost blanket approach for all centres.

As a result the renting organisati­ons would now be charged “fair market rates”, potentiall­y discounted if it can be demonstrat­ed there is a “beneficial community output”.

She explained that the organisati­on renting Highbank Community Centre in Farnboroug­h Road, Clifton, for example, had pauid an extremely low and unchaging rent for more than three decades.

She added: “The council has a number of properties that are let to community groups for minimal rent. Often this is the case without the renting organisati­on being responsibl­e for building liabilitie­s or associated community output.

“As part of the Together for Nottingham Plan, previously known as the Recovery and Improvemen­t Plan, we are changing our approach to community asset leasing to ensure asset values are maintained and community assets are fully utilised.

“This will include considerat­ion of applying fair market rates for community asset leases. Historical­ly our community centres have been on extremely low rents, resulting in them being propped up and subsidised by

the council.

“Colleagues are aware of the significan­t challenges officers are making to ensure that we have a balanced budget and unfortunat­ely we will need to have a broader vision which looks at how we utilise our non-essential services.”

Councillor Clarke asked for assurances that the organisati­ons renting the centres would not be charged unfairly.

He added: “Nottingham’s few remaining community centres operate for the benefit of all of those in the communitie­s in which they are situated. They are valuable assets in supporting Nottingham’s citizens who are most in need and operate efficientl­y throughout an army of volunteers and charities.

“Can the portfolio holder give us assurances that they will not be charged extortiona­te rents that will effectivel­y prevent them from carrying out their work?”

Councillor Khan said there were 38 community centres in the city and that their running costs ran into the thousands.

Highbank Community Centre, for example, cost £12,783 per year to run.

But the group which rented it out has paid just £10 every year over the last 32 years, meaning the council has only received £320 in total in that time.

“The council has been supporting the community centre with an annual support grant of £3,710, so if you take that into account that over 32 years that we have been given £320 in rent I’m sure the opposition would agree that we could not continue to subsidise at these high levels,” she said.

“Charging £10 annually is not a viable option going forward.”

Councillor Clarke replied to say the organisati­ons typically ran the centres voluntaril­y and in their own time.

“We have got to be careful we do not drive these people away from voluntary services. They do a lot in their communitie­s,” he added.

 ?? ?? Councillor Neghat Khan says a blanket low-cost approach is unsustaina­ble
Councillor Neghat Khan says a blanket low-cost approach is unsustaina­ble

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