ORGANISATIONS and businesses hoping to qualify for maximum 100 per cent rate relief will have to prove they need it under new means-testing rules being proposed by West Somerset Council.

But the authority is adamant those who need financial help will still receive it.

The new policy which, if approved at next week’s full council meeting, is due to come into force in April 2016.

Village halls are earmarked to receive 100 per cent rate relief, while charitable bodies and registered community amateur sports clubs will automatically receive mandatory 80 per cent rate relief.

Rural businesses, post offices, village stores, filling stations and pubs will get 50 per cent mandatory rate relief.

And all those receiving mandatory relief will then be able to apply to the council for a discretionary top-up based on their takings, profit margins and reserves.

Non-profit making organisations, community interest companies and those in financial dire straits will also be able to apply for discretionary relief.

However, national charity shops will only be eligible for 80 per cent mandatory rate relief.

Cllr Mandy Chilcott, the council’s lead member for finance, told Wednesday’s cabinet meeting: “Up until now we’ve given 100 per cent rate relief to whoever wanted it, regardless of whether they could afford it or not.

“We’re not looking to stop it, we are looking to support our communities, our charities and our voluntary sector.

“Yes, we have made some changes, but as a council we have to be fair to all our ratepayers and if some can afford to pay we feel they should pay something into the kitty.”

But some councillors said they had misgivings about the policy, partly because it would create additional work for officers who would have to deal with annual rate relief applications and also because no-one was certain of the impact on local groups.

Cllr Karen Mills, lead member for economic regeneration and tourism, said: “The only certainty I can see if that there will be an additional cost to us to implement this policy.

“Until the applications are in we won’t know how much this will cost us or how it is affecting our residents.

“I know we have to make savings, but I hope we are not jeopardising the wellbeing of our communities.”

Officers estimated the policy change could save the council between £21,500 and £31,500 a year by reducing the amount of discretionary rate relief paid out.

Additional income would also be generated for the council by those organisations and businesses which no longer qualified for full rate relief and would have to pay more in rates.

Cabinet members voted to recommend the policy to full council after being told it could be reviewed at any time if members had concerns about it.