Questions over future of Telford car park as parish council challenges huge rates bill

A Telford parish council has lodged an appeal with His Majesty’s Revenue & Customs (HMRC) after receiving a budget-busting rates bill for a car park at a beauty spot.

Randlay Valley Car Park, off Queen Elizabeth Avenue, in Hollinswood, has seen its rates bill increase from £9,500 to £15,000, a meeting heard this week.

The large car park has a gravel surface, is not laid out with spaces, and does not provide Hollinswood & Randlay Parish Council with a regular income, a meeting of the finance audit committee was told.

Although the car park is locked most of the time, it is used by the public during big parish and borough council events. It is also used by the Telford International Centre for overflow parking and police, the meeting heard.

Councillors were told that the possibility of closing the car park could be explored if the bill, issued in March, cannot be reduced or attract rates relief. Last year's bill had been paid following a challenge, the meeting heard.

Although rates bills are sent out by Telford & Wrekin Council, the one for the car park is based on a nationally set rateable value of £36,000, which works out as £8 per square metre.

Councillors were told that the parish council has lodged an appeal with HMRC and has been waiting for a response. An initial request to change the rateable value has been rejected, the meeting heard.

A spokesperson for HMRC confirmed that a rates 'challenge' from the parish council has been received and it aims to complete the process "as quickly as possible”.

The spokesperson said: "We’ve received the parish council’s challenge and are reviewing the relevant evidence in line with the process.”

The Valuation Office has 18 months to clear challenges but "always aims to do this as quickly as possible”.

Officials give priority to cases where customers tell HMRC they are experiencing financial hardship.

The committee meeting was told it has also approached Telford & Wrekin Council about the bill and the possibility that the parish council could look into closing it.

A Telford & Wrekin Council spokesperson said: “Business rates are based upon the HMRC’s rateable value of a property or location, as set by the Valuation Office Agency.

"If this rateable value is not correct or disputed, this should be appealed to HMRC directly.

"Telford & Wrekin Council must charge business rates based upon the HMRC’s published rateable value for a property.

"If this is amended, then a business rates refund or additional charge will then be calculated and sent out.”

The Local Democracy Reporting Service understands that the borough council has also been asking HMRC to clarify the situation.