Govan Law Centre (GLC) has called for a Holyrood inquiry into the impact of council-owned property companies on voluntary organisations, warning that current practices risk forcing vital community services to close.
GLC has written to members of the Scottish Parliament’s Social Justice, Housing and Local Government Committee urging an investigation into arm’s length external organisations (ALEOs), including City Property Glasgow (CPG), which manages around 1,600 commercial, retail and office properties on behalf of Glasgow City Council.
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GLC claims CPG has adopted a more commercial approach towards charities occupying its properties, including seeking market rents when leases are renewed and pursuing substantial refurbishment costs under dilapidations clauses.
In response, Cara Vallance, associate solicitor at Holmes Mackillop, said: “In testing economic times the public rely on charities, which provide services which used to be provided by the state. Due to rising overhead costs, some charities are now feeling the pressure to wind up, which leaves a gap in services for communities.
“Charities should consider merging with another charity which provides the same or similar services to streamline costs and prevent competing for funding.”
