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Charity law: u-turn on Government proposals to charge charities for licences to operate markets

Posted: Thursday 31 December 2009

On 17 December 2009, the Scottish Government announced something of a u-turn on its plans to bring in new legislation which may have led to charities intending to hold fundraising markets or fairs as having to apply for a licence.

The proposals were contained in the Criminal Justice and Licensing (Scotland) Bill which is currently making its was through the parliamentary process. Currently, section 40 of the Civic Government (Scotland) Act 1982 allows local authorities to require operators of ‘private markets’ to be licensed but it also contained an exemption for functions held by churches, charitable and other similar organisations. The new Bill would have removed that exemption and would leave it to each local authority to decide whether to charge for the issue of such licences. The result could have been that charitable organisations may need to purchase licences in order to conduct fundraising sales or fairs, and there would be no consistency of approach as between local authorities.

However, after concerns were raised by charities and community groups, Ministers have agreed that the plans should not now go ahead.

Lucy McTernan, Deputy Chief Executive of the Scottish Council for Voluntary Organisations is reported as saying:-

 "Today's change of heart from the Scottish Government is a very welcome Christmas Present for charities across Scotland. SCVO strongly opposed this section of the Bill. It would have allowed local authorities to charge charities and voluntary organisations for holding fundraising events - the bread and butter of our sector. Although amendments had already been lodged, the Scottish Government's u-turn on this issue is great news for the voluntary sector."

For more information go to http://scotland.gov.uk/News/Releases/2009/12/17115522 and www.scvo.org.uk/scvo/Home/Home.aspx

Tags: Charities

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