Scouts lobby MPs in bid to beat "rain tax"

Ofwat is seeking to bring in a new wastewater tax by 2010, which will bill organisations based on site surface area instead of the current rateable value charges.

This could mean the average Scout hut seeing its annual water charges rising by 500 a year, equivalent to 25 to 30 per cent of annual income.

At present voluntary groups have exemptions or discounts for business rates, but this will not extend to water rates.

The national campaign, led by the Scouts, is 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, Scouts and Guides groups, and community amateur sports clubs from unacceptably high charges.

David King, Rother Scouts leader, recently attended a lobby at the Houses of Parliament, accompanied by MP Greg Barker, in a bid to get the rain tax overturned.

Seventy MPs attended the meetings during the course of the day.

Mr King said: "The change to "site area" charging by Ofwat for non-household customers is understood to include large companies, industrial users, small businesses and public sector oraganisations.

"More to the point it also includes community groups, charities and places of worship.

"Scouting has 4,500 group HQs within the UK which should the known intended tax come into force, it would mean an annual expenditure of 1.5million."

Scouts are requesting MPs to sign Early Day Motion 985, which is against the implementation of the new wastewater tax. So far, more than 100 MPs have signed.

It reads: "That this House notes the enormous contribution Scout groups and other voluntary organisations make in helping local communities; notes with dismay Ofwat's decision to change the way water companies charge small charities and community groups for surface water run-off, and the impact that this will have on the financial future of organisations that rely on fund-raising and members' subscriptions for income, and are therefore particularly ill-placed to afford the huge increases in bills as a result; considers that this highlights the need to protect the ability of such organisations and the communities they serve to access water services; and therefore 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."

MP Greg Barker said: "It's time to axe this unfair "rain tax" which threatens our precious local volunteer groups. 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 our community life."

Mr Barker also met residents and community leaders at St Martha's Church hall in Bexhill to warn them of government plans for large increases in water bills on church halls and community groups.

A spokesperson for Ofwat said: "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.

"We believe that charging all non-household premises by site area complies with the Secretary of State's guidance."