Glasgow baby charity hit with 'devastating' £20,000 bill amid claims council agreed £50 yearly lease

A Glasgow charity has been hit with a ‘devastating’ £20,000 bill from the council’s City Property despite claims they had an ‘agreement for a peppercorn £50 a year lease‘.

Glasgow’s No 1 Baby and Family Support Service, which has been based at its current east end building in Germiston for seven years, suddenly received the huge rent bill in May.

Charity founder Audrey Dempsey said there had been a “verbal agreement” set up in 2018 when the organisation moved into Forge Street to pay a tiny annual fee of £50.

Glasgow City Council has denied that was the case.

Councillor Dempsey claimed that since the charity moved into the premises, City Property have not issued an invoice to the charity requesting any rent.

Claiming that a council official and Labour councillor Elaine McDougall were aware of the situation at the time, Reform councillor Dempsey said: “There was a verbal agreement in 2018 that there was a £50 per year peppercorn rent.”

Councillor McDougall has denied any knowledge of the agreement and it is understood the council official involved has now left.

Describing her reaction to the surprise invoice, councillor Dempsey said: “I felt devastated. All we received was the invoice. There was no covering letter. I thought we would fold. But I started this from my garage. It is my baby – I built it from scratch.

“We support 9,000 people a year including giving Christmas parcels to 3,000 kids. It won’t finish us. It was a massive bill to the charity. This charity has never had debt in its life.”

The local politician said the organisation, which provides clothes, prams, and other essentials including furniture to families, will draw on its reserves to try and meet the unexpected cost of £20,416 for the surplus stock property rent.

She said: “It will totally wipe out our reserves.”

She hopes the charity will have enough to survive for two years but is hoping they may be granted a community asset transfer to ensure more affordable rent.

Charity volunteer Carolann McGurk who is the board’s chairperson said: “I’m disappointed in the council that they feel it is on to send an invoice seven years down the line with no prior notice – even a covering letter.”

A source who wants to remain anonymous said they recall an agreement being set up involving the charity paying a concessionary rate – which would have amounted to far less than £20,000. They said they can’t recall the exact amount and whether it was definitely £50 but believe at the most it would have been £500 per year – which would bring the amount owed by the charity to £3,500.

The charity receives referrals recommending people who need help including from the council and NHS joint health and social care partnership, GPs, health visitors and other professionals.

Clothes, fridges, washing machines, toys, bedding, towels, pictures and ornaments are among the goods handed out.

A Glasgow City Council spokesman said: “The charity agreed a lease and rental terms on the property in 2018, and in line with the Concessionary Rental policy, rent is set at 50% of market rental levels.

“City Property have been acting entirely within the terms of the lease that was agreed with the organisation. Both the council and City Property remain in dialogue with the organisation to reach a mutually agreeable conclusion.”

Labour councillor Elaine McDougall said she “never had any of the details between councillor Dempsey and the council.”

She added: “This would be considered an operational matter, which the councillors would not have been involved in.”

City Property is owned by the council but is a separate legal entity.