‘Rain tax’ a disaster for churches

CHURCH members from across the region have staged a protest over a new water billing which they described as “a disaster for churches, charities and clubs”.

Many of these organisations face huge increases in their water bills as these cease to be calculated on the rateable value of the property and take into account their size.

In Cheshire, protesters gathered at the Rolls -Royce showroom, in Knutsford, which the Church of England has calculated would be billed less than the local parish church.

The Vicar of Knutsford, the Rev Nigel Atkinson, said the change in the way charges are made had left hundreds of Cheshire parishes facing massive hikes in what they were being asked to pay for rainwater drainage.

He added: “Churches in the Diocese of Chester are rallying round this campaign because what is happening is so unjust.”

In Knutsford, posters were unveiled which stated: “The ‘rain tax’ will drain churches and charities of £100m a year. Only water companies and big business will benefit.”

Where certain charitable or faith buildings have low or even zero rateable values, the new charging system classes all non-domestic buildings as commercial, making no distinction between factories and buildings owned by churches, charities and clubs.

It means they will be billed at the same level as commercial premises and the Church of England says annual bills for the average size church will rise from around £300 to £3,000. Bills for churches with big paved areas or car parks could potentially face annual bills of up to £10,000.

The Diocese of Liverpool supported the launch of the DontDrainUs.org campaign which aims to permanently end the so-called “rain tax” recently imposed on churches, clubs and charities.

A spokesperson for Liverpool Cathedral said: “As the fifth largest cathedral in the world, we stand to be penalised for the great space that we occupy.

“Our cathedral is not a place which can recoup costs by passing on costs to our visitors and worshippers. We have for many years stood by the principle that Liverpool Cathedral should be a place that is free to access and enjoy. This rain tax will create huge challenges for us in terms of fund raising.

“We want the people of Liverpool to benefit from this great cathedral not be financially punished by it.”

Last night, United Utilities denied they would benefit and said the changes would mean organisations with small premises, which had previously faced a high rateable value, would see significant decreases in their water charges.

However, despite this, the water giant said it had agreed with the regulator Ofwat to suspend the changes in billing.

A spokesman for United Utilities said: “We agree with Ofwat that charging for surface water drainage on the basis of site area is the fairest policy for all customers.

“However, we have been listening to the concerns of some groups and looking for ways of minimising the impact on organisations which have seen large water bill increases – particularly faith buildings, community amateur sports clubs and Guide and Scout Association buildings.

“We are pleased Ofwat and the Consumer Council for Water agree with the proposals we presented to freeze the charges for these groups at the current year’s rate (08/09).

“We will not phase in any more of the charges for these customers until Ofwat agrees that we can implement a longer term solution.

“In addition, we will continue to work with our most affected customers to help them minimise their charges and their impact on the environment.”

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