Councils await response after rejecting NHS claims for rates relief running to millions
0A clutch of around 100 councils are waiting for NHS trusts to make their next move after rejecting a claim for backdated business rates relief worth hundreds of millions of pounds.
In January, Room151 revealed that property consultancy Bilfinger GVA issued demands to the councils for mandatory charitable relief on NHS property.
After receiving legal advice commissioned from the Local Government Association (LGA), the councils have written back, rejecting the claims.
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Thelma Stober, corporate legal adviser to the LGA, told Room151 this week: “The LGA has sought legal advice from counsel on behalf of a number of councils who have received applications for mandatory relief from business rates on behalf of NHS trusts.
“It believes that NHS trusts and foundation trusts are not charities, and that the applications for rate relief are therefore unfounded.
“Affected billing authorities have responded accordingly to applications received.”
Room151 understands that a number of NHS trusts have lodged similar claims in the wake of the Bilfinger GVA claim.
A spokesman for Bilfinger GVA refused to comment on what its next move would be.
One local government source, who did not want to be named, told Room151: “Looking at the national non-domestic rate returns for this year, it looks like there isn’t any recognition of the issue by the affected local authorities.
“I guess councils have just parked it. They don’t want to be the ones setting a precedent by granting the relief.”
The Department of Communities and Local Government has washed its hands of the issue, telling councils earlier this year: “We are fully aware of this issue but, as you will appreciate, it is for local government to decide applications based on the facts of each case and we have no current plans to issue any guidance.”
