Children’s charity issues judicial review proceedings over Leasehold and Freehold Reform Act 2024

London’s leading grant-giving charity has issued judicial review proceedings against the government, arguing that the Leasehold and Freehold Reform Act 2024 (LFRA 24) will “jeopardize the financial stability and operational capacity of a handful of charities that depend on property assets for funding”.

John Lyon’s Charity observed that the former Conservative government “failed to acknowledge” the “significant adverse impact” the LFRA 24 has on charities who rely on income from leasehold estates.

It argued that the implementation of the Act will have a “particularly devastating” impact on its own work – meaning that children will be left without support and critical organisations will face severe underfunding.

Since 1991, the charity has awarded more than £208 million in grants, supporting over 1,700 organisations that provide vital services for young people across North and West London.

John Lyon’s Charity warned that many of these organisations rely on the charity as their primary or sole source of funding.

It said: “The Charity’s future grant making capacity of giving £16 million a year will be compromised, as the former Tory government failed to acknowledge the significant adverse impact the LFRA 24 has on charities who rely on income from leasehold estates. Nor did they put any compensatory safeguards in place to protect the property interests of freeholders.”

The charity warned it could lose around £1.4 million annually, and revealed it is subsequently imploring exemption from “critical parts of the Act”.

Dr Lynne Guyton, CEO of John Lyon’s Charity, said: “Since 2010/11, the CYP [Children and Young People] sector has faced a 69% funding cut, losing over 4,500 youth work jobs and closing 750 youth clubs. It is a sad reality that the CYP sector in London has only survived due to John Lyon’s Charity funding, and to continue bridging the gap left by public funding cuts, long-term sustainable funding is essential. Any reduction in the amount of funding we have available will put even more organisations and jobs at risk.”

Lottie Winson