Burley Gate Community Shop Case Study | Good Finance

Burley Gate Community Shop and Post Office

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Burley Gate Community Shop raised money from the local community using Social Investment Tax Relief. 

Duration 
4 years for loans
Cost of capital 
Between 2 - 3%
Turnover 
£80,000
Invested 
£57,000

Problem

Burley Gate’s existing Post Office and Village Shop were under threat of closure as the current business owners were due to retire and could not find a buyer for the premises. As the only shop and post office on a 15-mile road between Bromyard and Hereford, it is a valuable asset to local residents.

Solution 

A Community Benefit Society was created to set up a new shop and Post Office. Money was raised from local residents to buy a new portable building for the shop and buy the existing Post Office contract.

Revenue Model 

Individuals invested either through community shares or loan stock. The investment will be repaid through income generated by the shop and Post Office services.

Impact

Burley Gate Community Shop and Post Office serves a community in rural North-East Herefordshire, with a combined population of over 1000 people drawn from the surrounding 8 local parishes.The new larger store offers a wider range of groceries to meet local needs and promotes local food and drink products.

SITR provided another incentive for local people to invest.

        Leon Dodd,Treasurer, Burley Gate Community Shop and Post Office