A charity has expressed concerns after facing what it calls its "hardest year," with financial challenges mounting as a local council considers reducing its support for the sector.
Andrea McCombie, Chief Executive of the Ark Trust in Bracknell, explained that the combination of rising national insurance costs and increases to the minimum wage had made it particularly difficult for charities to maintain operations. These financial pressures have intensified as charities are already struggling with limited resources, and the potential reduction in council support only adds to their challenges.
Currently, Bracknell Forest Council provides charities with a 20 percent business rate relief on properties they occupy. This is in addition to the mandatory 80 percent relief from the government. This combined relief has offered charities a significant financial cushion, allowing them to better serve their communities and carry out their work. However, Bracknell Forest Council is now considering reducing this relief. Most other councils across the country offer varying degrees of business rate relief, with the average rate being around 2.5 percent, far lower than Bracknell’s generous 20 percent.
The financial burden of providing the full 20 percent business rate relief is estimated to cost Bracknell Forest taxpayers around £155,000 annually. With the council facing increasing financial constraints, including a tightening budget, it has become more difficult for local authorities to sustain such generous relief packages for charities.
Kathryn Neil, the Cabinet member for finance and corporate improvement, defended the council’s stance, stating that the 20 percent relief was "much more generous" than relief offered by many other authorities. She explained that due to the growing financial pressures faced by the council, it must consider making changes to ensure its budget remains sustainable. These changes are necessary, as the council has seen its resources become "more and more squeezed" in recent years.
The Ark Trust, along with many other local charities, now faces an uncertain future. The potential cut in business rate relief could significantly impact their ability to continue providing vital services to the community. As the financial situation becomes increasingly strained, charities will need to explore alternative funding avenues to cope with the challenges ahead.
