Some business owners in Carlisle have warned they will boycott paying the bills now arriving to fund the city’s new Business Improvement District.
A campaign to promote the BID, a company set up to boost economic growth and paid for by the businesses in a certain area, was held last autumn with a ballot held between October 31 and November 27. 234 votes were cast in the postal ballot with 128 in favour of the scheme.
The BID promised to ‘create a city that is energised, entrepreneurial, and people-focused’ and covers the wards of Belah, Stanwix Urban, Botcherby, Harraby North, Harraby South, Upperby, Currock, Denton Holme, Castle, Morton, Yewdale and Belle Vue.
It also extends to Houghton and Irthington, Wetheral and Dalston and Burgh wards that lie closest to the urban area.
Business rate payers whose properties have a Rateable Value of £15,000 or more are eligible to pay the levy which is calculated at 1.58% of their rateable value up to £15,000 a year.
The money goes towards running the BID company as well as paying for marketing and other initiatives aimed at boosting business in the BID’s area.
At a meeting held last night at the Old Fire Station in Carlisle, around 40 businesses gathered to voice their opposition to the idea which some say has not been fully thought through.
“There was a totally one sided ‘yes’ campaign which promised unicorns and rainbows,” Will Morgan, managing director of Greystone Leisure, told Business Crack.
“The reality is 954 businesses were eligible to vote yet only 24% did. Some didn’t even receive a ballot paper. With an increase in National Insurance, business rates and the effects of the war in the Middle East affecting the cost of energy, enough is enough.”
He added that the mood of the meeting was that some businesses would have little option but to pass the cost of being part of the BID onto customers so ultimately shoppers will end up paying more.
He also expressed concern at claims one of the BID’s initiatives would be to clean the city’s streets, an activity he says the council was already responsible for.
“I don’t think it is too late to carry out another vote,” Chris Scott from Border City Autos told Business Crack. “I’m not against promoting festivals and nightlife but as a car dealership I can’t see how I would benefit from it.”
Failing to pay the levy could result in court action but Lynn Steadman, of Aztec Adventure Play, feels it is an idle threat and believes if enough businesses refuse to pay the BID would be forced to think again.
“We voted against it and while we can afford to pay it, the idea wasn’t explained properly and there was no detail in brochures about what the BID will actually do for Carlisle,” she told Business Crack.
Great Border City BID said in a statement:
The Great Border City BID was approved through a formal ballot of eligible businesses late last year. The levy is collected by Cumberland Council under the national regulations that govern Business Improvement Districts.
The BID is currently being set up, with a Board now in place and work underway to develop a programme of activity including events, promotion of Carlisle and engagement with businesses across the city.
The BID Board will expand over time to include a wider range of businesses from across Carlisle, and businesses/people interested in being involved are able to apply via the BID website.
These are still the early stages of establishing the BID, and the focus at present is on putting the organisation and its programme in place so businesses can begin to see the benefits.
As with any ballot process there will be a range of views, and the BID remains open to constructive engagement with businesses as the programme develops.
