Festivals stung by business rates blitz

11 December 2014 - News

FESTIVAL ORGANISERS and their site landowners have accused the government’s Valuation Office Agency (VOA) of acting arbitrarily and detrimentally towards festivals, by charging business rates on formerly zero-rated agricultural land.

The farmer/landlord of one event, Cropredy Festival (cap. 17,500) in Oxfordshire, received a “five figure” demand for business rates, backdated to 2010, followed by a court summons when he failed to pay.

The VOA confirmed in a statement that it was, “Reviewing unassessed festival sites to ensure that all are correctly rated. This treats all businesses equally and ensures that they pay their fair share of the overall rates bill."

Festival understands that other events affected include Glastonbury (cap. 140,000), Wakestock (25,000), Boomtown Fair (40,000) and Latitude (35,000).

“This business rates issue has come out of nowhere,” says Cropredy’s Gareth Williams. “Our main landowner, was visited by a valuation officer who reported that the VOA has to put a business rates valuation on the land, because of its use for a festival.

“But we only use the site for three weeks of the year. We also use about six other landowners’ fields, but they are not being targeted,” he says. “The rest of the time it is all arable farmland.”

While the rateable value is set by the VOA, the charge is levied by the local authority, in Cropredy’s case it is Cherwell District Council, with whom the festival already works on licensing and organisational issues.

“We are appealing against it,” says Williams. “It doesn’t matter who gets the invoice, the festival will end up paying it.”

Wakestock (15,000) promoter Stuart Galbraith of Kilimanjaro Live confirms, “Our farmer was given a rates demand backdated to 2010. He contested it, but the rates authority threatened to take him to court, so he paid.

“I don’t think it’s fair or just to apply a rate for something that happens for three days of the year,” he says. “The rating office is being very aggressive about it. It has a detrimental effect on the festival.”

Quantity surveyor Ian Sloane, who is working with Cropredy on its appeal, says, “The VAO is allowed to backdate the rates to 2010. But we can look at ways of mitigating losses [for the festival], which could set a precedent.” He points out the council has the discretion to offer up to a 100 per cent rates rebate to events which it believes benefit the local economy.

Steve Heap, general secretary of the Association of Festival Organisers, which largely represents folk-oriented events, says a joint response is being discussed with the Association of Independent Festivals (AIF).

“We have to challenge this decision and make the case that these events bring money to the local economy,” he says.

AIF chairman. Jim Mawdsley adds, “A city centre club pays business rates because they use all the amenities, like refuse collection and street lighting, but a festival organiser pays for all that themselves, and makes sure the land is reinstated.

“If festivals have to pay business rates, they’re paying twice for these facilities.”

This article first appeared in Audience magazine. Subscribe here.