CAMPAIGNERS fighting to secure tax free status for a former leisure centre are celebrating after an Ombudsman backed their case against a county council.

Ferryhill Community Partnership took over the running of Ferryhill Hub, the former leisure centre in the town, from Durham County Council two years ago.

The hub group, as tenants of the Lambton Road site, applied in 2013 for 100 per cent non domestic rate relief from the council as a charitable organisation.

The authority approved the partnership’s bid for 80 per cent mandatory rate relief but it refused to apply 20 per cent discretionary rate relief.

The hub group lodged an appeal and in a draft statement the Ombudsman has supported the Ferryhill team.

Dave Farry, chairman of the partnership, said: “We’re pleased with the Ombudsman’s draft decision. It’s a massive boost to the partnership running the hub.

“We were always under the impression that we qualified for full non domestic rate relief like any other charitable organisation.

“This will free up extra funds which we will look to use to replace the old heating system.

“We’re looking to work closely with the county council to further improve the facilities in the hub.

“We are up to date with our non domestic rates. We hope this decision is backdated to when we made the claim. I hope that any money recovered is used to help at the hub.”

The Ombudsman ruled that the council did not initially explain why the discretionary rate relief bid proved to be unsuccessful.

A few weeks later in September 2013 the council did explain its decision.

It said that Section 47 of the Local Government Finance Act 1988 gave councils the discretion to grant up to 100 per cent rate relief.

Groups seeking 100 per cent relief must drop into one of three categories: the ratepayer must be a charity and the premises used for mainly charitable purposes, the premises are occupied by groups whose main objectives are charitable or the premises are wholly or mainly used for recreation by clubs not seeking to make a profit.

Ferryhill Hub said it fell into two categories of the requirements but the council disagreed.

An appeal was lodged but the authority upheld its decision.

A further appeal for discretionary rate relief was made for the tax year 2014 to 2015 and it is still to be determined.

Paul Darby, the council’s head of finance, said: “We are carefully considering the Ombudsman’s views.

“We will take this into account when reassessing the Ferryhill Hub’s applications for rate relief.”