Local government minister, Bob Neill, has shown support for not-for-profit social enterprise the People's Supermarket following a decision by Camden Council not to grant rate relief, lumbering the organisation with a £33,500 bill.

Neill has written to the council to request it reverse its decision not to provide the discount to the supermarket's premises costs, a decision which can only legally be taken by the local council. 

"There is a clear public benefit from the People's Supermarket to the local community and a broader public interest in promoting co-operatives and the Big Society," said Neill. "I am concerned that Camden's actions could undermine this important Big Society initiative," he added.

Under section 47 of the Local Government Finance Act 1988, local councils have the discretion to offer up to 100 per cent discount on rates for non-domestic premises used by not-for-profits. When this is the case, the government bears 75 per cent of the cost while the local authority only pays for the remaining 25 per cent.

The People's Supermarket is a sustainable food cooperative which has been praised by Prime Minister David Cameron and was brought to the nation's attention when it appeared in a Channel 4 documentary. 

Neill's appeal to Camden Council follows a court order for the supermarket to pay £33,500 remaining unpaid from a total £39,500 rates bill, which was issued before taking the decision to refuse the discretionary relief application.