Item 08 - Non-Domestic Rates Hardship Application
West Dunbartonshire Council · 25 March 2026
Back to West Dunbartonshire Council — 25 March 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Council: 25 March 2026 ___________________________________________________________________ Subject: Non-Domestic Rates Hardship Application 1. Purpose 1.1 The purpose of this report is for Council to consider a non-domestic rates hardship application. 2. Recommendations 2.1 It is recommended Council: a) Confirms the Chief Officer – Resources recommendation to not award hardship relief b) Delegates authority to Chief Officer – Resources to determine any future applications for Discretionary Relief from Non-Domestic Rates. 3. Background 3.1 Section 156 of the Local Government (Scotland) Act 1994 makes provision for a council to settle (in whole or in part) a business’s Non-Domestic Rate liability if it is satisfied the business would sustain hardship if it did not do so and that is reasonable for the Council to do so, having regard to the wider interests of its local taxpayers. The powers under Section 156 are discretionary and it has been the practice for the Council to decide whether to make a settlement. 3.2 On 25 October 2000 Council considered a Discretionary Relief from Non- Domestic Rates – Hardship paper and agreed that hardship relief would be submitted to the Director of Corporate Services, who would forward applications with appropriate recommendations for Council to consider. The position of Director of Corporate Services no longer exists in the Council’s establishment and with the relevant officer now being the Chief Officer – Resources. 3.3 Although Non-Domestic Rate income is collected locally and added to the national pool of rates income, 25% of any hardship relief awarded must be met from the Council’s General Fund. ITEM 6
Page 2
4. Main Issues 4.1 The Council has received a Non-Domestic Rates Hardship application. This is the first one received since the policy was agreed in October 2000. The Non- Domestic property the application relates to is Dalmoak Castle which is in Dumbarton. The property has been empty since December 2013 and is classified as a Class 8 – Residential Institution (Nursing Home). 4.2 The application for hardship was based on the following information provided by the applicant: Since the insolvency of the nursing home company in 2013, we have been maintaining Dalmoak Castle at significant personal financial cost. We continue to bear heavy mortgage commitments and repair costs for this listed heritage property, while at the same time investing what limited resources we have into upgrading the building in the hope of bringing it back into productive use. Payment of non-domestic rates at this stage would cause us severe financial hardship and force us to halt the upgrading works. This in turn would make it impossible to progress with our plans to reopen the property for community benefit, such as the health and wellbeing project. We therefore respectfully request hardship relief for Dalmoak Castle from 1 April 2024 until the property is either sold or brought back into viable business use. This would allow us to continue maintaining and upgrading the property, safeguarding it as part of the local heritage, and eventually contribute positively to the local economy. 4.3 The property was in receipt of 100% Empty Property Relief from 19 December 2013 to 31 March 2024. The rates relief value for this period was £165,583.73. Entitlement to Empty Property Relief ended from 1 April 2024 following Council’s approval of the Non-Domestic Rates Empty Property Relief Policy on 20 December 2023 which removed the 100% relief previously awarded to listed buildings. 4.3 The outstanding charges for 2024/25 and 2025/26 are £28,635. 4.4 Following receipt of the hardship application on 25 August 2025, the property was visited was by two Council officers on 19 September 2025. This was to allow the applicant to discuss their business plans and work carried out on Dalmoak Castle and allow the officers to provide a report to Chief Officer – Resources. 4.5 The report which details the professional views on the work completed and work required to bring the property back into use stated: The external fabric is in reasonable condition, and the grounds of property are being maintained.
Page 3
All timber windows and doors are in urgent need of decoration and the there is a need to renew sand mastic sealant. Internal floors, walls and ceilings are in reasonable condition and property is dry and free from dampness. Bedrooms have screeded pipes chases to radiators and are broken up in areas. First floor room doors have been upgraded to fire doors but the condition of the door closers and fire seals are poor. Bathrooms throughout property are dated and in need of refurbishment with some work started on replacement showers in two ground floor ensuite rooms. Catering kitchen is dated and in need of replacement. Two dehumidifiers were running on the first-floor landing. Oil-fired central heating was running when visit was carried out however condition of boiler is unknown. Condition of hot and cold water system and drainage system unknown. Fire alarm requires inspection and testing. Many radiators are corroded and the enamel finished is damaged. Decoration is tired and needs refreshed The report summary states there appears to be minimal investment on the property for a number of years due to the Care Home business ending and is in need of major investment to bring it up to a habitable standard for any functional use. The cost of the works is likely to run to several hundred thousand pounds, and an estimation of the timescale for refurbishment could be up to 24 months. 4.6 The applicant was emailed on 6 October 2025 for clarification on the points noted below: During the visit, the applicant advised there was no business or building plan in place. Confirmation was required if this remained the case. Information to be provided on costings and timescales required to bring the property up to a standard to allow the business to commence. If consideration had been given to any planning applications that might be required to change the use of the property. 4.7 The applicant responded on 15 October 2025 confirming there was no business plan in place however they were developing the concept. The reply addressed the planning consent and provided further information on the planned building works as follows: Refurbishment of three ground-floor bedrooms, upgrades to fire safety systems, replacement of the main electrical fuse board, and installation of appropriate security measures. Refurbishment of three additional rooms on the upper floor and further restoration as resources permit.
Page 4
The applicant advised they have upgraded the central heating system, which involved a significant expense. That several radiators and valves still need to be replaced, and that internal painting and furnishing will also be required to make the rooms suitable for occupation. 4.8 Due to an error made in the Non-Domestic Rates (Scotland) Act 2020 which accidentally removed the legal right for local authorities to charge owners of unoccupied properties, consideration of the hardship application had to be paused to allow the Scottish Government and local authorities to seek a legal opinion. Emails were sent to the applicant on 12 and 26 November 2025 to advise and confirm once this was resolved, contact would be made with them. 4.9 On 25 November 2025, Scottish Parliament agreed a motion to treat the Non- Domestic Rates (Liability for Unoccupied Properties)(Scotland) Bill as an Emergency Bill. This was agreed with the bill passing on 27 November 2025 and became an Act on 7 January 2026. This Act resolved the issues raised at point 4.7 and the rate payer was updated and advised that the application would be considered by Chief Officer – Resources and recommendation made to Council on 25 March 2026. 4.10 Having considered the application, the report provided by the Council officers and subsequent information from the applicant, the Chief Officer Resources recommendation is that hardship relief is not granted. 4.11 As stated at point 3.1, the Council must be satisfied that the business would sustain hardship if the application was not granted. Currently this is not an active business but an empty property that has benefited from rates relief as stated at 4.3. 4.12 The Council Officers professional opinion is that the property requires major investment to bring it up to a habitable standard for any functional use. Without completing a full inspection, the officer estimates the costs could run to several hundred thousand pounds and take up to 24 months to complete. 4.13 The rate payer has confirmed that there is no business plan in place and no evidence of funds in place to complete the required works. 4.14 In reaching this decision on the hardship relief, the Chief Officer Resources must fully consider the above information, the probable completion date considering business planning and financials, the viability of the business model and if the relief would be in the interest of council taxpayers. 4.15 While the proposed business could benefit residents suffering from diabetes, help with obesity management and wellbeing, there are concerns over the investment required to make this a reality and over whether this is a viable business model. 4.16 Recommendation 2.1b) recommends that all such future applications are determined by the Chief Officer: Resources. This reflects the fact that
Page 5
applications for relief may often consider detailed financial, technical and personal information which is not appropriate to place in the public domain and which may require professional knowledge and expertise to best consider. If agreed, the appropriate policy and scheme of delegation will be amended to permit determination by the Chief Officer: Resources except in those circumstances where he deems it is not appropriate to exercise such delegation. In these cases a report will be submitted to Council with the appropriate safeguards taken in respect of commercial and personal data. 5. People Implications 5.1 There are no people implications. 6. Financial & Procurement Implications 6.1 If approved, the cost to the General Fund for the years 2024/25 and 2025/26 would be £7,158.75. 7. Risk Analysis 7.1 None 8. Equalities Impact Assessment (EIA) 8.1 An equalities screening carried out did not identify any equality considerations. 9. Consultation 9.1 The views Legal Services have been requested on this report and have advised there are no issues 10. Strategic Assessment 10.1 Sound financial practice and budgetary control are imperative to assist with the governance of the Council and supports officers of the Council in achieving the five strategic priorities of the Council’s Strategic Plan. This report forms part of the financial governance of the Council. …………………………………………… Laurence Slavin Chief Officer - Resources Date: 25 March 2026
Page 6
Person to Contact: Ryan Chalmers, Section Head, Church Street, Dumbarton. Email: ryan.chalmers@west- dunbarton.gov.uk Appendices: None Background Papers: Report to Council, 25 October 2000 Wards Affected: All Council wards.