Newtown Town Council warned grant refusal could be challenged

Newtown Town Council’s Resources Committee has been advised that rejecting a community grant application because it does not align with the authority’s environmental policy could leave the council open to challenge.

The report, due to be considered by councillors today, was prepared after the committee raised concerns about one of the grant applications received in May and asked officers to investigate the issue.

Officers found that there is “no requirement stated in either the grant-making policy or Terms of Reference / Guidance Notes that applications need to be assessed against, or align with, other town council policies”.

As a result, the report warns that “to refuse a grant application on this basis would be going beyond the town council’s published grant-making policy and terms of reference”.

The report goes on to state that such a decision “could also be seen as unfairly singling out an organisation, as no other applicants have been required to demonstrate alignment with other town council policies” and “could be challenged at audit or as maladministration”.

The committee is also warned to proceed carefully if it wishes to tighten grant criteria in future. Officers state that while members could review the policy and guidance notes, “caution is advised” because “creating more onerous grant criteria may prevent applications from the volunteer-led community groups that this funding stream is designed to support”.

Although the report recommends approval of a grant application from Open Newtown, it does not disclose what the application relates to, how much funding is being sought, or the nature of the environmental concerns raised by councillors.

Officers conclude that the application “meets the current, published grant criteria” and recommend that the committee approve it.

The Resources Committee will consider the recommendation when it meets today.