The People’s Supermarket faces court over £33,000 unpaid rates bill

Published: 3rd March, 2011
EXCLUSIVE by RICHARD OSLEY

THE celebrated People's Supermarket, which was at the centre of David Cameron’s attempt to launch his “Big Society” programme, is being taken to court over failing to pay business rates.

Government ministers have already tried to intervene in the case which relates to an unpaid £33,000 bill dating back to last May, the New Journal has learned.

Conservatives say the venture in Lamb’s Conduit Street, Holborn, credited for its unique set-up which sees staff work in the store for discounts on their food shopping rather than salaries, should have been given special relief from the council demands.

The brainchild of Camden-raised chef Arthur Potts Dawson, the People’s Supermarket has been the focus of a Channel 4 documentary detailing how its operation stands apart from multinational chains. It aims to cut down on waste and form a community spirit with its collective workforce.

Prime Minister Mr Cameron visited the supermarket last month re-launching his push to get the Big Society taken seriously, a strategy which Conservatives says amounts to people giving up spare time to run services locally for the common good. Staff have been told a business rates prosecution hearing has been set at Highbury Corner Magistrates Court for March 17.

Bob Neill, an MP in Eric Pickles’ Department for Communities and Local Government wrote to Camden’s Labour leader Councillor Nasim Ali yesterday (Wednesday) calling for the shop to be helped.

“The People’s Supermarket is a great example of a sustainable food cooperative working within a local area, providing healthy, local food at reasonable prices. The fact it is high profile by virtue of the Channel 4 documentary also provide positive publicity and inspiration to  other co-operatives around the country,” he said. 

“I would therefore ask you to reconsider your council’s decision in relation not to grant them non-profit rate relief. This should be seen in light of the clear public benefit of the People’s Supermarket to your local community and the broader public interest of promoting co-operatives and the Big Society.”

Mr Neill said the government had received “representations” over the case.

Nobody from the People’s Supermarket could be reached last night with calls to Mr Potts Dawson going through to his answerphone. Its supporters are said to be shocked that the council has gone straight for the “nuclear option” of taking the business to court. 

Conservative leader Councillor Andrew Mennear said: “This is exactly the sort of thing that the council shouldn’t be doing. 

“If they had passed our amendments to the budget this week the council would be supporting good enterprises like this – not making life harder for them.”

Labour finance chief Councillor Theo Blackwell said: “We can’t just offer rate relief to businesses because the Prime Minister visited it and I think Camden taxpayers would agree with that. The truth is that discretionary tax relief has overheated in Camden – it doubled during the last Conservative and Lib Dem administration in Camden and we have to get control over it.” 

A council press official said: “Where businesses do not qualify for an exemption, discretionary rate relief or do not pay the business rates due on the premises they occupy we work with them to find a practical solution that ensures that payments are made and kept up to date. 

“In this case we have provided the People’s Supermarket with several payment options that have not been taken up. Despite providing several options for their arrears to be paid, we have now issued a summons and the case will be heard in court.”

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