Rent doubled at community hall in Bromley to leave its future in jeopardy

By Joe Coughlan, Local Democracy Reporter

A Bromley community group is facing a ‘crippling’ increase to its rent which could result in its closure, with over 1,100 residents throwing their support behind a petition to stop the hike.

The petition called on Bromley council to review its proposed rent increase for Melvin Hall Community Group in Penge which would reportedly see the group’s bill more than double.

The group claimed that the authority had put forward a rent increase from its current rate of £27,500 a year to £58,835. Melvin Hall offers a range of services to the area including a food bank and lunch clubs, as well as hosting a variety of charity partners.

Johnathan Clyde, trustee and treasurer of Melvin Hall Community Group, said at a Bromley council meeting on Monday: “Bromley council owes a duty of care to its vulnerable clients measured in more ways than money. We believe that the 114 per cent increase in rent to £58,835, and the money on top needed for running costs, is unachievable.”

The treasurer said out of the group’s annual turnover of £53,755, over half of the sum went to Bromley council for rent. He said the rest of the figure was spent on utility bills such as gas, electricity, water and internet.

Mr Clyde said the group had been negotiating with the authority on the figure for ten months and several recently hired members of staff had left the group over fear of its closure.

Conservative councillor Christopher Marlow, portfolio holder for resources, commissioning and contract management, said at the meeting that Melvin Hall was an important community facility in Penge and the borough as a whole. He said that over 20 groups made use of the space at little to no cost to users, but only one of these groups, the Gateway Club, was financed by the council.

Cllr Marlow said at the meeting: “As a council, our policy is clear. We will always prioritise statutory services over non-statutory services as it is our statutory services which provide support to the most vulnerable residents of the borough.”

He added: “It would not be proportionate that the council subsidise a venue that overwhelmingly provides non-statutory services, particularly if the financial impact of doing so negatively impacts statutory services.

“The rent for this property was originally set in 2017. Since then, prices have risen by 30 per cent, reflecting the economic disruptions brought about by the Covid-19 pandemic and the Russian war in Ukraine.”

Councillor Kevin Kennedy-Brooks put forward an amendment on behalf of the Labour Group asking the council to offer a revised rate structure to the community group which would not ‘financially cripple’ it but still provide increased income to the council.

The motion also called on the authority to confirm its support to the group, which he said helped a large number of disabled residents, and to work with it to create a sustainable business plan.

Cllr Kennedy-Brookes said at the meeting: “Melvin Hall is a safe place, it’s been there for a long time. I know from my day job of working for people with similar health issues, it takes a lot of time and effort to build that confidence of people who have learning disabilities to move into a new place where there are new faces.”

Councillor Simon Jeal, leader of the Labour Group, seconded the amendment and claimed the Melvin Hall Community Group had not been given enough time to structure a business plan in response to the council’s planned rent increase. However, Cllr Marlow claimed that the council had since made a revised offer to the group last week and the authority was willing to compromise.

Cllr Marlow said: “We urge the management of Melvin Hall Community Group to agree to the proportionate increase as soon as possible. If the process cannot be concluded, then the council may need to consider disposal of the property in question either to provide additional funding for the capital program or secure a higher rate of return to fund statutory services.”

The Labour amendment was voted on and not carried at the meeting. The council voted to carry the original motion put forward by Cllr Marlow, which stated that the council noted the petition and that the executive committee would continue to pursue an increase in rent from the property.

It added that the authority would consider potentially selling the property if an agreement could not be reached.

Pictured top: Melvin Hall, based on Melvin Road in Penge (Picture: Google Street View)