Concerns Over Ending of Concessionary Rents

Glasgow City Council's decision to end concessionary rents to voluntary organisations in commercial properties hit the headlines again this week.  The policy, passed at a meeting of Glasgow City Council's Executive Committee in December 2010, means that some organisations face rent increases of over £20,000 which, in turn, could lead to the loss of valuable services.

GCVS has been contacted by a number of our members in recent months about this issue and we are very concerned about the impact this policy will have on voluntary and community organisations in the city.  We surveyed our members and networks and found that most who responded - covering a wide range of voluntary sector activities including childcare, domestic violence support, cultural groups and health services - see this as a detrimental measure which will reduce their services significantly.   In some cases it may lead to the complete closure of much needed support to vulnerable groups.

GCVS and our partners in the Interface are concerned about the speed at which the proposals are being implemented at a time when voluntary sector organisations are already struggling with budget cuts. It is hard to see how full market rates will be achieved when many of the rented properties exist in areas of low demand and charities often ensure that such premises are not left vacant and neglected.  Furthermore, the added value of the many local volunteers involved in delivering services is also being put at risk if the organisations have to re-locate or close.

Glasgow's Third Sector Interface Executive Committee met on 12 May 2011 and discussed the changes to Glasgow City Council's Concessionary Rents Policy, the general increase in property rental costs across the city and the impact of this on the sector.   A report of the GCVS members survey on Concessionary Rents was considered as part of the discussion and the Executive Committee have agreed to seek a meeting with GCC to discuss this development and to try to mitigate the "unintended consequences" of the policy.

The GCVS report can be viewed here.

Read the coverage in Friday's Evening Times

Tags: Local Authority, Policy, Voluntary organisations