Council to increase community centre rent to ‘fair market rates’
CONCERN RAISED OVER IMPACT ON GROUPS WHICH ARE ‘VALUABLE ASSETS’ TO THE CITY
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.