Many churches, Scout groups and amateur sports clubs will have to pay hundreds of pounds more every year because of new charges being introduced for surface water drainage.

            Although Cumbria’s water supplier, United Utilities, has put the so-called “Rain Tax” on hold until next year, some voluntary organisations could then find themselves spending up to a third of their yearly revenue on drainage.

            The new charge will be based on the size of a building’s roof, not on the site’s rateable value as in the past.

            Ofwat, the water industry quango, has instructed all water companies to introduce the new charges, saying “there is no reason why a church or charity should not pay for surface water drainage in the same way as a business as both the church, charity and the business would be making a similar demand on the service”.

            This means that the “Rain Tax” falls disproportionately on churches, sports clubs and other buildings with large roofs, open areas or sizeable car parks.

            Voluntary groups currently have exemptions or discounts for business rates, but this will not extend to water rates. As a result the new charges could cost the Church of England £15 million a year, while the Scout Association estimates that the changes could cost scout huts £500 a year.

            Ministers – upon whose “guidance” Ofwat’s decision was based  – have refused to do anything to help, or even to accept responsibility.

            But the Conservatives are calling on the Government to use the forthcoming Flood and Water Management Bill to ensure that water companies are given the freedom they need to protect places of worship, Scout and Guide groups, and community amateur sports clubs from unacceptably high charges.

            They say water companies should be allowed to levy “social tariffs” to ease the burden on churches and voluntary community organisations.

            “While Labour Ministers sit on their hands and do nothing, Conservatives are standing up for the local community and calling for a change in the law,” John Stevenson says.“Water companies should be able to reduce the charges for voluntary groups and treat them fairly, given the vital role such not-for-profit groups play in community life.”

JULY 21, 2009

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