WIREDGOV

Consultation on exemption scheme launched.

Third sector organisations are to have their say on Scottish Government proposals to exempt charities with a turnover of less than £75,000 per year from water and sewerage charges.

Currently an exemption applies to charitable organisations that qualified in 1999, but does not include newly formed charities.

Extending the scheme would mean up to 5,000 third sector organisations would be exempt from the charges.

To extend the scheme to all charities with low incomes the Scottish Government is proposing to remove the exemption from organisations who now have a turnover of more than £75,000 averaged over the past three years.

The introduction of this would be phased in to allow those organisations to plan their finances in order to meet the charges in the future.

Published recently (November 18), the consultation will run until February 14 2014. All third sector organisations, as well as business customers who currently pay for the costs of the scheme and stakeholders involved in the operation of the scheme, are being asked to give their views on the proposals.

Deputy First Minister Nicola Sturgeon said:

“The third sector is essential to Scotland’s well-being and prosperity. However, many organisations within the sector operate on low incomes and water and sewerage charges can be a significant burden.

“Since the creation of Scottish Water in 2002, the third sector has benefited from a scheme originally designed to exempt small organisations from water and sewerage charges. Many of these organisations are now much larger, so it is only fair that we review the scheme and bring it up to date so newer charities can also benefit.

“I recognise that such a scheme comes at a price to other customers. It is therefore essential that we find the right balance between those who benefit from exemption and those who must bear the cost.”

Martin Sime, Chief Executive, SCVO said:

"This consultation sends a strong signal about the Scottish Government's commitment to creating a water and sewerage rates exemption scheme that is fair for everyone. The current system is unnecessarily complicated, so it's encouraging that we now have this important chance to develop a simpler and more effective approach.

"It's vital that exemption from water and sewerage charges continues for smaller third sector organisations which make a huge contribution to communities in all parts of Scotland.

“SCVO will work closely with the third sector to encourage a positive response to the consultation. This will ensure the new exemption scheme delivers the greatest possible benefit to charities and third sector organisations and that everyone is prepared for the changes which will come into play when the new system is introduced in 2015."

Notes to editors

Launched in 2002, the current water and sewerage charges exemption scheme applies all charities who qualified in 1999. The current scheme comes to an end in March 2015.

The full consultation can be accessed at: http://www.scotland.gov.uk/Publications/2013/11/9119