Westminster calls for legislative change to tackle unlicensed street fundraising

In a letter to the Secretary of State for Culture, Media & Sport, the council's leader, Cllr Paul Swaddle, said Westminster is under particularly acute pressures from the practice, which involves people approaching members of the public to ask for donations to non-charitable organisations such as community interest companies (CICs).

According to Cllr Swaddle, the collectors often operate outside major train stations, including Victoria and Marylebone Station. He said that, due to the CIC status, people often do not realise that donations can go to a variety of sources, including towards paying directors' salaries rather than directly to the cause they are purporting to support.

"These CICs often focus on emotive causes such as veteran support and rough sleeping preying on the good will of our residents and visitors, who have provided evidence that those collecting can use intimidation to encourage people to donate," he added.

The leader also said that the council has seen an increase in the unauthorised collectors operating without a licence in Westminster.

The Police, Factories, & c. (Miscellaneous Provisions) Act 1916 allows local authorities and some police forces to regulate collections of money or sales of articles for charitable and other purposes in streets and public places.

Cllr Swaddle said the Act fails to adequately support licensing authorities to effectively enforce illegal activity and to safeguard the integrity of charitable fundraising for the public. 

The Metropolitan Police is the responsible licensing authority in Westminster.

Cllr Swaddle said: "Enforcement action against those who break the law is cost prohibitive as the fines issued and recovered amounts through the courts are lower than what it costs for licensing/local authorities to act against CICs. They continue to act with impunity knowing that they are likely not to be held to account."

His letter comes a year after a coalition of enforcement and regulatory bodies, convened by the Fundraising Regulator, found that the 1916 Act was not fit for purpose in dealing with aggressive or misleading street fundraising.

The coalition proposed removing a £200 cap on fines, with the option of a custodial sentence, and the introduction of fixed penalty notices to allow local authorities to take swift enforcement action without costly court proceedings.

It also called for the Government to extend the law to cover offences by company directors to prevent individuals from avoiding penalties by dissolving and reforming organisations.

Cllr Swaddle said Westminster "fully supports" the coalition's recommendations, adding that the relevant licensing authority should have the ability to issue Fixed Penalty Notices when CICs are caught operating without a licence.

He added: "I urge you to take the necessary legislative steps to enable councils such as Westminster the ability to clampdown on this unruly behaviour for everyone’s benefit and prevent the nuisance it causes not only to those who approach but to the legitimate charities who strive to support our society in an appropriate and ethical manner."

Adam Carey