CHARITIES in the town have received another blow after Swindon Council revealed it was withdrawing part of the discount it gives them on their local taxes.

It means charity shops, like the British Heart Foundation, Sue Ryder Care and Oxfam, will have to start paying business rates, which they have not been doing for years.

At a meeting on Wednesday nightSwindon Council’s cabinet decided to stop the 20 per cent discretionary business rates discount for national charity shops in the town.

The new rules will apply to 26 organisations such as national charity shops, housing associations and those charities that have their national headquarters based in the town.

It will mean that each of them will have to find an extra £1,811 a year on average. It will save the council £35,332 a year.

All charities are given an automatic 80 per cent discount on their business rates and the additional 20 per cent discount in Swindon meant they were paying no business rates at all.

It will not apply to locally-based charities such as the Prospect Hospice and all charities will continue to get the mandatory 80 per cent discount.

Shops like Sue Ryder Care, in the Brunel Centre, which is one of the largest charity shops in the country, and the British Heart Foundation, which has two shops in the town, are likely to be hit particularly hard.

Mike Lucas, the retail director at the British Heart Foundation, said: “The additional 20 per cent rate relief helps us keep our costs down, and we have always been grateful to receive this from Swindon Council.

“As a charity we strive to keep costs to a minimum, so this cut is of course very disappointing.

“Increased costs takes money away from the funds we raise to fight against heart disease.”

At Wednesday night’s meeting Swindon Council leader Coun Rod Bluh said the decision was being taken due to budget pressures.

He said: “Swindon will still remain more generous than other councils as the 20 per cent discount will still apply for local charities.

“However, times being what they are, we feel the time is right to differentiate between local charities and those based elsewhere.”

Coun Fionuala Foley said the decision had been taken with a heavy heart but added most of the shops affected already have to budget for rent, insurance and utility bills.

“While Swindon Borough Council wants to be supportive the bottom line is we don’t have the money,” she said.

And Coun Peter Greenhalgh pointed out that neighbouring authorities did not give additional business rates discounts.

“If charities are happy to not receive the discretionary business rate discount in Wiltshire, why on earth should Swindon be an exception?” he said.

The discretionary relief paid to the organisations totalled £47,110 in 2010/11, of which Swindon council paid £35,332. The Government met the rest.

Swindon Council declined to say which 26 organisations would be affected because it had not informed them yet.