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May 2020

Last Updated: 07/05/2020

Politics

Harrogate landlords criticise council's decision not to charge rent to its tenants during crisis

by Calvin Robinson

| 07 May, 2020

Landlords in the Harrogate district have criticised the borough council’s plan to give commercial tenants free rent during the coronavirus pandemic.

Some landlords in the Harrogate district have criticised the borough council’s plan to give commercial tenants free rent during the coronavirus pandemic.

The authority made the decision back in March as part of its response to the coronavirus outbreak.

Businesses which rent from the council were given three months free rent and could also apply for emergency grants from the government.

While other authorities offered local companies in their area rent deferrals, the borough council decided to give businesses in the district a period of rent for free.

At the time, a joint statement from chief executive Wallace Sampson and council leader Richard Cooper said the council wanted to encourage others to offer support.

It said: "Our commercial tenants will be offered three months’ rent free and we’ll be doing all that we can to encourage other landlords in the district to consider what support they can offer their tenants."

But some landlords in the district have described the decision as “unnecessary” and pointed to the fact that the authority has estimated a £15 million shortfall in its budget.

John Warren, a housing landlord in Ripon, said while some business will need help, the cost is going to eventually have an impact on the taxpayer. He said:

“My concern is as a council taxpayer.

“We have a council which is giving money away perhaps unnecessarily and no doubt in 12 months time council tax will be put up.

“I am sure they have done it for the best of reasons, but when times are hard you have to think of the greater good which is the council taxpayer.”

Mr Warren contacted The Stray Ferret and said he was unhappy after it was revealed that the borough council is expecting a shortfall of £15 million and may have to furlough some staff to address the funding gap.

Another landlord, who did not wish to be named, said: “It does not seem fair, it will screw the market.”

In response to an e-mail from Mr Warren, Councillor Margaret Atkinson, member for Fountains and Ripley, said the authority was doing all it can to support local business.

“The council has to do everything it can to help these businesses on the instructions of the government,” she said.

“The government has given Harrogate council over £40 million to issue grants of £10,000 to small businesses that meet - 1) They are in the Harrogate district, 2) They qualify for small business rate relief or rural rate relief and 3) the business occupies the property.

“They have already had over 2,000 applications.”

However, Mr Warren described Councillor Atkinson's response to his concerns as "very unsatisfactory".

Meanwhile, Councillor Pat Marsh, Leader of the Liberal Democrats group on the borough council, said she thought the decision was rushed.

“I think in hindsight it was maybe a decision which should have been tempered,” she said.

“For me, I think it was a bit of a rushed decision that I wish I had given more thought.”

Harrogate Borough Council has been approached for comment but had not responded at the time of publication.