Authority says it faces bankruptcy unless it makes desperate cuts

Moray Council has voted to withdraw rates relief for 17 charity shops across the region in a bid to balance its books.

Councillors took the decision after the local authority’s budget was slashed by £14m.

However they have been criticised for targeting charity shops after it emerged they would save just £65,000 by making the organisations pay full rates.

The British Red Cross, which operates four stores across Moray, said it would get in touch with the council about the changes as it counts the financial impact.

Aaron McLean, chairman of the council’s policy and resources committee, said it would only be charities with high street retail outlets that would be affected.

He said: “We value the volunteer groups that run village halls and community groups across the area. That’s why it’s important we continue to support them.

“For the ones that we have decided to stop giving rates relief to, we are simply coming into line with neighbouring authorities like Angus and Aberdeenshire.

“We have made exceptions too. Moray Foodbank and the Credit Union are classed as charity shops but it’s clear that retail is not the purpose of them.”

Charities are entitled to an 80% discount on their business rates bill. However most councils wave the remaining 20%.

But this week the council’s policy and resources committee decided to withdraw the financial support offered to 17 charity shops to cover the remaining 20%.

A spokesman for the British Red Cross’ retail division in Scotland said: “We have not yet been contacted by Moray Council about this decision but we will be seeking clarification from them.

“Obviously, the withdrawal of any rates subsidy will have a financial impact upon our charity shops but until we know the full details we can’t be any more specific.”