ST HELENS Council will make a “financial contribution” to assist a High Court challenge involving NHS trusts around the country.

Back in March the Local Democracy Reporter Service reported the council was preparing to have to pay out £2.6 million in backdated tax pending the outcome of a High Court legal battle.

The Local Government Association (LGA) has advised all councils that a law firm acting on behalf of 20 NHS foundation trusts have issued proceedings in the High Court against 49 billing authorities.

While it is not one of these authorities, St Helens Council has now taken a delegated decision to support the defence of the claim by making a financial contribution to the LGA.

The council declined to say how much it is contributing to the defence.

The claim related to backdated business rates appeals and the matter of NHS trusts seeking mandatory charitable relief based on their legal status.

Currently, private hospitals are entitled to the tax breaks through their charitable status while NHS trusts are not.

The council’s business support manager Jon Ridgeon told the audit and financial monitoring overview and scrutiny panel in March that the authority could be liable to pay back around £2.6 million.