City Property Glasgow (“CPG”) is a group of two limited liability partnerships, owned, controlled and run by Glasgow City Council (“GCC”).
They own and manage 1,600 commercial, retail and office premises – including lets to 130 charities in Glasgow – and are an arm’s length external organisation (“ALEO”) of the council.
Historically, GCC or CPG leases to charities have been on “peppercorn” or non-commercial rents, recognising that voluntary sector organisations provide free vital services to local communities with limited funding.
Recently, CPG has adopted an aggressive commercial approach to Glasgow charities: renewing or terminating leases for full commercial rent and seeking massive sums of money for refurbishment costs under “dilapidation clauses”.
Current practices have already wiped out some city charities and/or services: see https://eblknd.leaflet.pub/3mg6akzx3n22l & https://www.thenational.scot/community/25518929.demanding-800-000-turning-point-scotland-bad-look-city/
Govan Law Centre’s (GLC) concern is that CPG’s policies now risk wiping-out vital services for thousands of people across Glasgow.
Third sector charities provide a wide range of essential services across Scotland: prevention of homelessness, justice, drug and alcohol treatment services, social care, financial inclusion, advice and welfare, mental health, community and cultural services.
Such services are indispensable for local councils to meet their national performance framework obligations for the health and wellbeing of Scots; and contribute to the UN’s Sustainable Development Goals, adopted by the Scottish Government in July 2015.
GLC has written to the Convener and members of the Social Justice, Housing and Local Government Committee of the Scottish Parliament to suggest an inquiry into the adverse impact of Scottish ALEOs, such as CPG, on the ability of third sector organisations to provide essential free services to people in Scotland. A copy of our letter is available below:
Our Principal Solicitor and Solicitor Advocate, Mike Dailly, said: “GLC believes the time is right to look at reforming the law on local government ALEOs. These publicly funded bodies lack transparency and accountability for their activities”.
“As we’ve seen in Glasgow, local government ALEOs can wipe out the vital services of charities for local people and appear to have little regard to their statutory duties under the Equality Act 2010”.
“The Scottish Parliament needs to shine a light on the practices of ALEOs and we hope other third sector charities in Scotland will write to the Social Justice, Housing and Local Government Committee and support our call for an evidential inquiry”.
Coverage of this issue in the media
Glasgow Times
Govan Law Centre calls for Holyrood probe into rents | Glasgow Times
SCVO Third Force news
Glasgow ALEO targets third sector demanding exorbitant new charges – TFN
Law centre demands Holyrood inquiry into Glasgow charity rents – TFN
