NERVE “cannot
be classed as ‘not for profit’”
Culture Liverpool
Readers of Nerve will know that we struggle to raise money to keep our
organisation going and to publish this magazine. So when we were accused
of profit making by the Culture Company we were puzzled to say the least.
In September 2010 we completed five weeks of hugely successful events
at the Nerve Centre in the old Rapid paint shop on Renshaw Street, only
to be landed with a rates bill for £1,448 by Liverpool City Council.
Culture Liverpool (who organised our
lease of the building) had told us, halfway through, that we would be
receiving this bill, but that it was just a paperwork exercise. All we
had to do was fill in a form and they would arrange payment with the Rates
Department; we would get 80% rates relief and the owners of the building
would pay 20%.
We received the rates forms off Culture
Liverpool on 8 November 2010. Then a court summons to pay £1,500
five days later. Although this was stopped, Culture
Liverpool said they needed a years’ worth of audited accounts
(only legally required if turnover is £3 million) and Memorandum
& Articles (only required if Limited Company) for the rates team who:
“…need this information to progress the rates reduction –
without this info Catalyst [Nerve] will remain liable for the whole rates
amount for the period of occupancy.”
Culture Liverpool know that Nerve
is an unincorporated collective. They were quite happy about this, and
our finances, when they negotiated for us to take the building. Why were
they now asking for such detailed information? Long story short, we approached
the rates department directly and were told that all they needed was bank
statements.
At this point, an explanation for those not up to date with how the council
works. Culture Liverpool is controlled
by the council, while the Rates Department is part of Liverpool Direct
(LDL), an arms length organisation run by BT, a private company. Do they
talk to each other? That’s a good question.
We were awarded 50% rates relief, so this meant that Culture
Liverpool had to pay the other 30%. They then accused us of being
profit making, which is rubbish. In fact (because we checked with the
rates department) 50% is the standard relief - only charities get 80%.
Surely Culture Liverpool should have
known this?
Culture Liverpool are supposed to
look after the interests of the arts community in this city. But our dealings
with them have been very mixed. Their inconsistency, helpful on the one
hand and bureaucratically controlling on the other, does not make it easy
for groups like ours to have any confidence in them. The way the council
has been cut up and hived off to private companies does not help either.
We would be interested to hear of other’s experiences of working
with Culture Liverpool. Letters to
the editor for the next edition of Nerve.
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