Derby Teaching Hospitals NHS Foundation Trust & Ors v Derby City Council & Ors

Derby Teaching Hospitals NHS Foundation Trust & Ors v Derby City Council & Ors

NHS foundation trusts are not established for charitable purposes only due to the breadth of their statutory purposes, which include activities 'related to' and 'in connection with' health service provision, allowing non-charitable purposes. Therefore, they do not qualify as charities for the purposes of section 43(6) of the Local Government Finance Act 1988.

Parties
Claimants: Derby Teaching Hospitals NHS Foundation Trust and 16 others; Defendants: Derby City Council and 44 others; Intervener: Charity Commission for England and Wales
Jurisdiction
England and Wales
Judgment Date
12 December 2019
Procedural Posture
Civil / Preliminary Issue Determination
Outcome
Claim dismissed on the preliminary issue
Legal Topics
Definition of Charity, Mandatory Relief From Non Domestic Rates, Charitable Purposes, Public Benefit Requirement, Statutory Interpretation
Charity Law Local Government Law Public Health Law Definition of Charity Mandatory Relief From Non Domestic Rates Charitable Purposes Public Benefit Requirement Statutory Interpretation

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Parties

Derby Teaching Hospitals NHS Foundation Trust and 16 others

Claimants

Derby City Council and 44 others

Defendants

Charity Commission for England and Wales

Intervener

Procedural Posture

Civil / Preliminary Issue Determination

Legal Issues

  1. 1 Whether NHS foundation trusts are charities for purposes of section 43(6) of the Local Government Finance Act 1988
  2. 2 Whether NHS foundation trusts are established for charitable purposes only
  3. 3 Whether NHS foundation trusts are subject to the control of the High Court in its jurisdiction relating to charities

Ratio Decidendi

NHS foundation trusts are not established for charitable purposes only due to the breadth of their statutory purposes, which include activities 'related to' and 'in connection with' health service provision, allowing non-charitable purposes. Therefore, they do not qualify as charities for the purposes of section 43(6) of the Local Government Finance Act 1988.

Court Disposition

Claim dismissed on the preliminary issue

Orders

  • Derby Teaching Hospitals NHS Foundation Trust is not a charity for the purposes of section 43(6) of the Local Government Finance Act 1988