Farming News - Showground's future in jeopardy after huge tax bill
Showground's future in jeopardy after huge tax bill
THE Lincolnshire Agricultural Society (LAS) is challenging West Lindsey District Council’s decision to remove its charitable rate relief.
The LAS, which operates from Lincolnshire Showground, is a non-profit making charitable organisation, set up in 1869 with the aim of educating people across the county about food, farming and a sustainable environment.
Because of the work it does for the Lincolnshire community in terms of education on food and farming with schools, colleges and charitable organisations, the LAS has had an 80% charitable rate relief for decades, but this has now been called into question by the council – which has taken the matter to court.
The LAS is fighting the action saying that without the rate relief, some of its events could be scaled back – including the size and scale of the Lincolnshire Show, causing a “domino effect” on local businesses.
With an additional burden on finances imposed by West Lindsey, entry prices could rise at the Lincolnshire Show and we may have to charge entry to some of the other educational events we host, which are currently free of charge, says Jane Hiles, LAS chairman.
She said: “This has been a really difficult time for us. All of the work that the LAS carries out is for the good of the county – and its people and therefore, we strongly believe we should receive a charitable rate relief.
“Without the charitable rate relief, the LAS could be faced with an annual increased cost of almost £70,000 per year – money that is currently earmarked in delivering our educational work.”
The LAS, which has had a permanent home at the Lincolnshire Showground for more than 60 years and celebrated its 150th anniversary last year, gift aids 100% of surplus funds from non-charity bookings into maintaining the showground and delivering its educational work.
As a non-profit making organisation, the LAS does not make money from its events or endeavours, says Jane – and this includes the Lincolnshire Show.
“We do not make a profit on the Lincolnshire Show. It is a showcase event held every year for the good of the community, businesses and the farming network. It may seem that we are securely funded, but in fact our margins are extremely tight and we have to constantly review costs,” added Jane.
“The wet show in 2019 and the burden of the legal costs we incurred in the action with West Lindsey District Council, resulted in a trading loss of more than £100,000 in the year 2018/19.”
It could be a landmark case if the showground is forced to relinquish its charitable rate relief, said Jayne Southall, CEO of the Lincolnshire Showground.
“The showground operates in the same way as around 20 other major agricultural showgrounds across the UK. The UK agricultural industry relies on its county showgrounds to be centres which host conferences, meetings and major events,” she said.
“We believe the showground plays a pivotal role in allowing the LAS to achieve its charitable objective and that, as such, the venue should qualify for the charitable rate relief that it has always historically received.
“The Lincolnshire Show requires year-round planning and organisation to ensure high standards of safety, quality and educational value and not only do we fulfil our charitable objectives with the show and the showground, but we also make a huge difference to the local economy, supporting local businesses and providing lots of temporary jobs.”
Employing more than 20 staff, the charity team works all year-round to meet the aims and objectives of the organisation as defined by the Charity Commission and in addition to the annual show also provides satellite educational events and activities throughout the year, benefitting thousands of local children, farmers and their families.
Jayne added: “Hosting such a large event as the Lincolnshire Show and maintaining the showground’s 243-acre site, including its additional buildings and infrastructure, costs money and the only way we can uphold such important charitable work is by generating income outside of charity events.
“We fully intend to challenge the decision taken by West Lindsey District Council to remove charitable rate relief for the showground so that we can ensure the future of our much-loved show, charitable work and the viability of other businesses and organisations that rely on our events and venue for income.”
NFU East Midlands regional director Gordon Corner said: “Lincolnshire Agricultural Society plays an absolutely crucial role as an educational charity, teaching young people about the vital part farming plays in the county and the country.
“The innovative and exciting activities LAS puts on demonstrate not only how much work the society does but also how important it is that this progress continues.
“The Tractors into Schools project is always hugely popular and I took agriculture minister Robert Goodwill around the Schools’ Challenge at the Lincolnshire Show which involved dozens of schools and hundreds of children. We were both amazed by the experience; it was utterly inspirational.
“People today have never been more removed from how their food is produced, despite a massive surge in interest into the subject and, on that basis, the charitable and educational work LAS does must be allowed to continue for the benefit of everyone.”
In addition to hosting events ran by the LAS, the showground acts as a venue for other charitable organisations such as the national Scouting Jamboree, Lincolnshire Rural Support Network and St Barnabas Hospice.
Bill Meredith, chief executive and principal at Riseholme College, which is a part of Bishop Burton College, said: “We have a strong relationship with the LAS – our new Showground Campus is located just a short distance away at the Lincolnshire Showground, which is a huge benefit and really helps strengthen our partnership.
“We share similar objectives in terms of educating people about food, farming and a sustainable environment and we work together to host joint events to help get young people interested in agriculture and to improve their understanding on where their food comes from. The LAS also helps provide work experience for our students – something that is invaluable and incredibly important from an educational aspect and future-proofing the farming industry. We are also extremely supportive of the Lincolnshire Show and we work together on the School’s Challenge, involving nearly all the schools in Lincolnshire.”
Mary and Michael Davenport, owners of Cote Hill Cheese from Osgodby, Lincolnshire, have been dairy farmers for more than 50 years and have been exhibiting at the Lincolnshire Show for more than ten years.
Michael said: “We exhibit at the Lincolnshire Show, Food and Gift Fair and Countryside Lincs. It produces brilliant results for our business, brings in a lot of local and new customers and helps make the connection between us and our consumers – we rely on the showground events to sell our produce and help our business grow.”
Jane Haigh, owner of Bridleway B&B located one mile from the showground, consistently sees an uplift in room bookings that mirrors the showground events calendar. As an artist she is also a regular exhibitor at the show and Food and Gift Fair; selling her work.
Jane said: “Our small business benefits hugely from the events held at the Lincolnshire Showground – the Lincolnshire Show in particular brings in a flood of customers for us.
“The Showground has had a big helping hand in growing my artwork business. I have had an increase in customers and have received lots of positive feedback from exhibiting at the show - it is fantastic to see the showground encouraging and promoting local start-up businesses like mine.”
Amy Conyard, director at Louth-based gin producer Pin Gin and winner of the Lincolnshire Showground’s Grow with the Show competition in 2018, said: “Our stand at the Lincolnshire Show is our biggest event of the summer and our stand at Food & Gift Fair is our biggest event of the Christmas season.
“We see a huge increase in profits during these times and the events help give us the exposure to as many consumers as possible. As a new local business, we have really felt the support from the showground since we launched three years ago and we are incredibly appreciative.”
The Lincolnshire Show: The facts and figures:
100% - of surplus funds are gift aided back into the charity
£11 million – the amount spent at the show itself and in surrounding restaurants, hotels and other facilities in Lincoln over the two-day event
£1 million – is how much the LAS has to pay to stage the Lincolnshire Show on average every year
60,000 – is the average number of visitors attending the show each year
12,600 – is the number of young people involved in the LAS education programme
6,000 – is the number of local school children attending the show every year
4,000 – the number of LAS members who give donations to help fund education work
104 – the number of businesses, representatives and supporters involved in the LAS education programme
27 – the number of charities attending the Lincolnshire Show in 2019
22 – the number of permanent jobs created by the Lincolnshire Agricultural Society
For more information visit www.lincolnshireshow.co.uk