| MP 'angry and disappointed' at Government U-Turn on Rain Tax |
| Wednesday, 24 June 2009 | |
 Southport's Lib Dem MP, John Pugh, says he is ‘angry and disappointed’ at a Government decision not to exempt faith buildings and non-profit making groups from huge hikes in water rates.
The rate increase – which has been dubbed the ‘rain tax’ – had been put on hold for 12 months after protests from Dr Pugh and others. However, the Government now says that it will press on with plans to charge water drainage charges according to size of land occupied rather than rateable value. The result is that large churches could start paying £8,000 instead of £140, whilst big cathedrals are facing charges soaring from £5,000 to £70,000. The Scouts Association has estimated that it will incur £1.5million annually in increased charges as a result of the rate change. Furthermore, there is inconsistency in the proposals: sports clubs can apply under an old-style system to prove they are registered as a Community Amateur Sports Club to receive rate relief – but such an option is not available to faith buildings and other not-for-profit organisations. A long-standing opponent of the rain tax being applied to such groups, Dr Pugh has already signed EDM 985 which calls on Ofwat to support The Scout Association's call for a social tariff regime for community and voluntary groups, by enabling such a pricing system to be used by water companies. Furthermore, he will be attending the All Party Parliamentary Scouts Group meeting on 15th July to further pursue the rain tax issue. Commenting, Dr Pugh said: “I am angry and disappointed at the Government U-turn. It appears that the 12 month delay in bringing in these charges was nothing more than a tactic to defuse the justified anger of those who are faced with astronomical rate hikes.” He continued: “Small concessions – such as exempting playing fields and graveyards from the rate calculation – don’t compensate for the fact faith buildings and non-profit groups will suffer a huge rain tax that puts money into the pockets of privatised, profit-making water companies. This is simply wrong.” |