An uncertain future for Britain's charity shops

The humble charity shop will be hit by further financial burdens thanks to the government's new business rates scheme.

We’ve all got a local charity shop. Like the bank, the post-office or the news agents, they’ve become a staple of the British high street ever since the first one was set-up by Oxfam in 1947. It’s easy to take these unassuming shops for granted. Quietly, they chug-along in the background, minding their own business, recycling and re-selling unwanted possessions; but unlike other high street institutions, these small establishments are exceptionally important to our communities.

Last year alone, charity shops raised over £220m for their parent charities, which funded a variety of vital projects, from medical research to local community care work. Staffed by over 160,000 volunteers nationwide, who benefit from social-interaction and retail training, charity shops also prevent a huge amount of rubbish entering the waste stream through encouraging re-using and recycling. But as of this month, charity shops will have a tougher time remaining on our high streets, thanks to the government’s new business rates retention scheme.

Designed to create a direct link between business rates growth and the amount of money available for councils to spend on local services, the business rates retention scheme will allow local authorities to retain 50 per cent of all business rates revenue from their area – an increase of 25 per cent.  The scheme’s focus on economic growth is a concern for the National Council for Voluntary Organisations, who warns that it will “potentially stunt the growth of local community action”, as councils withhold discretionary rate relief payments.

At present, organisations occupying a building solely for charitable purposes are entitled to 80 per cent mandatory rate relief, funded by central government. Local authorities can then choose to grant the remaining 20 per cent rate relief at their discretion. But once underway, the new scheme will require councils to fund 75 per cent of all discretionary relief payments. For local authorities, already feeling the effects of budget cuts, it would be self-defeating for them to grant discretionary rate relief which they must fund substantially from their own resources, especially when they have the chance to earn more revenue from businesses paying rates.

Councils have already begun to grant less discretionary rate relief because of pressures on budgets, according to Wendy Mitchell, head of policy and public affairs at the Charity Retail Association: “Rate relief to charity shops is important, as any reduction in relief impacts the amount of money that goes to the parent charity. So it’s important that relief is given in recognition of the social and philanthropic benefits to services – local hospices for example.”

Not only does this new legislation create further financial burdens for a sector already feeling the effects of the recession, but the government’s lack of consideration for charities contradicts their ‘localism’ ethos. Outlining their desire for a rejuvenated high street last July, communities secretary Eric Pickles, and former minister for high streets Grant Shapps, asserted: “Shared and public spaces are vital ingredients. Creative thinking is needed so these spaces can become the focal point for the social interaction that is the epitome of the high street experience – an area that is enjoyed by all members of the local community.”

Charity shops are exactly the kind of spaces where community interaction takes place; where volunteers meet with members of the public and where social interaction and community-cohesion is encouraged. It is totally counter-intuitive, therefore, to create a scheme which makes it tougher for charity shops to survive on our high streets. Although, as Wendy Mitchell asserts, the charitable sector “understands that local authorities are under a lot of economic pressure”, it is nonetheless important for the government to recognise the importance of relief payments to charity shops; and in turn, the importance of charity shops in creating a community-focused high street.

A dramatic example of what may happen to charity shops is being played out in Wales: proposals from an independent business review want to reduce the amount of mandatory rate relief for charities from 80 to 50 per cent, and restrict the premises charity shops are able to occupy. The plans have been vehemently opposed by the Charity Retail Association, who submitted a petition of 22,600 signatures to the Welsh government in January. “Charity shops are being looped in with chicken shops and betting shops, and their wider context is being forgotten,” says Mitchell. “Our petition shows that most people do use them, they are popular, and we need to make sure that that voice is heard. These shops raise money for a huge range of worthwhile causes.” According to Mitchell, if the changes are accepted it will force charity shops to close, creating more empty shops on Wales’ already abandoned high streets.

Though no decision has yet been made regarding cuts to mandatory rate relief in Wales, it provides a stark vision of what could happen if attitudes towards charity shops remain unchanged. Incentivising councils to focus on economic growth rather than charities, the business rates retention scheme ultimately puts at risk the very organisations that contribute most towards the government’s idyll of a community-focused high street. And, more dangerously, should these small but mighty fundraising establishments be forced out of our town centres, it will be the more vulnerable members of our communities who will suffer most.

Oxfam worker looks for clothes that have been sold via their online store at the Oxfam online hub warehouse in Portishead, England. Photo: Matt Cardy/Getty Images
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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear