Changes to non-domestic rates bills could have 'a huge impact' on community groups
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The bills being faced by some Caithness charities and community groups for non-domestic rates could have "a huge impact" and might put some on the brink of closure.
That is the concern expressed this week after a revaluation of the scheme by the Scottish Government resulted in changes which came into operation at the start of this month. Charities and community groups that were previously exempt may now have to pay a percentage of the rates as they could lose a 20 per cent small business top-up benefit.
Yvonne Hendry, development officer for Caithness Voluntary Group and secretary of Second World War Air Raid Victims – Wick (known as the memorial garden committee), said: "This could have a huge impact on community groups and needs to be fixed as soon as possible.
"The situation is causing concern to quite a few of them since they received the letters last week. So many halls and voluntary groups could be hit by this and it is stressful for them."
It comes on top of increased utility and other bills and could put further financial pressure on community groups in Caithness and elsewhere in the Highlands that are already struggling due to rising costs and inflation.
"On top of that they are getting these bills for non-domestic rates and that will be alarming," Mrs Hendry said. "I can't believe Highland Council, although short of cash, wants to hit groups that have the least amount of money.
"I am sure it will be resolved but it will still be stressful getting that letter. I would like to think it is an error and somewhere along the line it will get sorted."
She pointed out that many groups may not have the money to pay these bills and could get "very close to going out of business".
She said: "It will put a huge strain on them because of the financial problems at the moment."
Mrs Hendry said the letter received by the memorial garden group – which looks after the garden in Bank Row commemorating the victims of two air raids on Wick in 1940 – gave no explanation about the apparent change in policy, and she added that in previous years such bodies were exempt from non-domestic rates charges.
"Every year it was zero. Some are still getting a 100 per cent discount but not all and it is causing concern," she added.
Mrs Hendry stated that organisations have 28 days to appeal and suggested those affected should contact Highland Council if they think they have received an improper assessment.
Ron Gunn, a Thurso and Northwest Highland councillor and chairman of the Caithness committee, knew the Scottish Government had undertaken a revaluation of rates for small businesses but did not realise it included charities and community groups.
He said: "That would be a shock to these groups if they have to pay these bills. It will be quite a worry to try and find extra money to pay at a time when there is growing demand for the type of services they provide."
Councillor Gunn added: "I will try and get some clarification on the situation for these community groups and charities."
A Highland Council spokesperson said: "Up until March 31 2023, many charities and voluntary groups were awarded a 20 per cent small business bonus top-up in addition to the 80 per cent mandatory relief awarded.
"Following the 2023 revaluation, carried out by the assessor, and the changes to the Small Business Bonus Relief scheme introduced by the Scottish Government on April 1, 2023, the Highland Council is carrying out a review of all Small Business Bonus entitlements."
However, the spokesperson pointed out these organisations need to re-apply for any potential top-up.
