MELLO Mello are to look at restructuring parts of their business in a bid to achieve charitable status, following a meeting with Liverpool's Deputy Mayor yesterday.
It came within 24 hours of our plea for swift action.
It will mean that Mello Mello can continue to operate while they put a new business plan in place and, although there is a long way to go, the immediate threat of closure has abated.
Councillor Paul Brant said the council is fully committed to working with the Slater Street arts organisation to stay open in the restructuring period and “wants to see the service they provide flourish”.
After meeting general manager Rob Longson, Mello have agreed to look at restructuring the arts and culture side of business – in other words everything that isn't the cafe/bar - to become charitable. This would enable mandatory business rate relief to apply on those bits of the organisation, reducing their liability.
In the interim period, it will be supported so that it can remain open.
An online petition attracted 6,000 signatures.
A council source told Liverpool Confidential: “The issue is that we have to pay a proportion of rates relief to the Government, hence why we have been tightening the eligibility criteria and concentrating on organisations linked to priority services, such as vulnerable adults and children.
“There is a wider national issue here in that the Government is talking about the importance of social enterprises and there is all sorts of legislation being passed encouraging them, but they still don’t get mandatory rate relief and it is left to the discretion of councils…and we’re having to cut left, right and centre.”
Deputy Mayor Paul Brant said: “Liverpool is a huge champion of the arts and cultural sector and we invest £5 million of funding every year to creative organisations in the city.
Relief
"At the same time, we have had to make some extremely tough budget choices in order to save £141 million over the last two years, with over £50 million to be found over the next two years. This has meant difficult decisions over business rate relief, as we have looked to align applications with the priorities of the council, such as vulnerable adults and children. As a result, a very small number of organisations have lost out.
“I fully appreciate that this may be difficult for them and I have therefore asked the Director of Finance and Culture Liverpool to carry out a review and see if there is a different way in which we can help those organisations that we also grant fund. It is possible they could apply for charitable status, which would entitle them to Government funded mandatory rate relief.
.“Although we do not grant fund Mello Mello, I understand the majority of the business rates is in relation to the bar, and am mindful that there are other licensed premises in the area that do not get business rate relief. Given the competing pressures on the city council, we cannot afford to financially support this part of the business.
"However, I have met with them to discuss the situation and they are considering restructuring to make much of their activity charitable for which they will be entitled to Government funded rate relief."The Council is committed to working with them to help them over the restructuring period, and wants to see the service they provide flourish.”
Liverpool Confidential yesterday approached an arts funding agency which has agreed to look at Mello Mello's case and work with them to see what community interest grants and other awards may be applicable to its operations.
We will, of course, keep a close eye on the story.
Mello Mello's response
Last night Mello welcomed the swift response and manager Rob Longson issued the following statement to Liverpool Confidential.
"We met with Councillor Brant today who was keen to illustrate to us the unfortunate and unpopular steps that Liverpool City Council believes it has to take in order to cut its sizeable budget gap.
Mello Mello Liverpool
"It would certainly appear that the worst is yet to come in terms of council cutbacks and that the reasons for this fall firmly at the feet of inexplicable decisions made by central Government.
"Whilst Cllr Brant was kind enough to take the time to talk to us he explained how the council is unable to reinstate any discretionary rate relief for us.
"Cllr Brant also keenly stressed that the council does not want Mello Mello to close and has offered us some considered advice regarding the structure of MelloMello CIC which we are now considering as a means of being able to stay in business.
"We are grateful to have had an opportunity to speak in person and air our case to Cllr Brant; we are similarly grateful to have been given a large-scale indication as to why our relief has been stripped.
"We remain committed to exploring all possible avenues of survival."
"I'd like to personally stress how massively grateful everyone at Mello Mello is for the overwhelming response and support that has been shown to us and will hopefully continue to be shown to us - so many supporters have offered invaluable advice and everyone has helped to bring a highly contentious issue to light.
"It is important that debate on this issue continues."
You can still register your support and read some compelling reasons to keep Mello Mello alive here
