CITY licensing chiefs have rejected a company’s bid to raise funds for two Birmingham hospitals from doorstep clothing collections – because only five per cent of their takings go to charity.

The council committee refused to give Local Community Recycling Services (LCRS) a permit saying residents would expect a higher return for charity from their donations, instead of just £50 for every £1,000.

But LCRS, which operates across the country said it needed 85 per cent of the money they raised – £850 out of every £1,000 – to cover its costs. Despite the high outgoings the company said it would have raised up to £3,000 a month each for Birmingham Children’s Hospital and charity Cure Leukaemia, which is based at the QE.

Director Mark Fitzgerald said the company already has permission to collect for national charities, and that Birmingham would miss out.

“It is very sad that we will still be able to raise money for orgnaisations like the RNLI in the Birmingham area, but Birmingham City Council will stop us collecting for local charities,” he said.

Mr Fitzgerald said a five per cent level of donations was not unusual for doorstep collections.

He explained that his company received about £1,000 per tonne of used clothes from East European wholesalers.