Agenda item

Report of the Leader

The Leader introduced the report and explained that the Cheltenham Business Partnership (CBP) had determined to support the introduction of a Business Improvement District (BID) in the town centre. A Shadow BID Board had been established and was progressing towards a ballot of businesses in the affected area, currently scheduled for April 2016. The Leader explained that he was the Council’s representative on the Shadow BID Board.

He reported that there were more than 200 BIDS in existence across the country with very positive feedback to date. A Business Plan is agreed for the 5 year life of the BID after which time it is reconfirmed. The Leader explained that the aim of this report was to alert Cabinet to its responsibilities, agree a method by which they are discharged and as far as is possible at the moment, identify the impacts. He highlighted that it was not for the Council to insist that a BID is implemented as this was a decision to be made by businesses in the town, via a referendum within the zone outlined in Appendix 2 of the report. The BID would be established if, through the ballot more than 50% of business rate payers voting were in favour and they represented more than 50 % of the business rate value of those voting. The annual cost of the levy would be an extra 1.25 % on business rates unless the business was located in a shopping centre.

The Leader explained that there was concern that the introduction of the BID and its levy would mean that businesses which paid the Late Night levy (which raises £70k per year) would be paying two local taxes. The Shadow BID Board was proposing that in year one of the BID, any business paying the Late Night Levy would have this amount reduced from their BID levy charge. In subsequent years, they would only pay the BID levy and the Late Night Levy would be discontinued. The BID would continue to fund initiatives related to the night-time economy.

The Leader explained that a loan of £32k from British Bids- a government funded body would be allocated to establishing the BID process in Cheltenham. The loan would be repayable by the BID Board in the event of a positive ballot.

In terms of the specific roles of CBC in the process the Leader explained that Cabinet would be required to delegate authority to the Managing Director Place and Economic Development in consultation with the Cabinet Member Development and Safety to collect the additional rates triggered by the BID process. The Council would be liable for the payment of the BID levy for any property for which it pays business rates and is in the BID area. Post ballot the Council would be able to claim 3 % of the BID Levy to fund its role in collection of the levy.

The Leader highlighted that there was a £9k shortfall in cashflow and an application to the Late Night Levy fund was being progressed to address this.

Finally, the Leader reminded Members that a seminar had been arranged for 28 January to discuss this in more detail.

In the discussion that ensued Members supported the establishment of a BID and whilst it would mean a financial commitment from the council as a considerable property owner it was important to look at the bigger picture in terms of contributing to the economic success of the town. The BID had the potential to make the town one of the most inviting and welcoming towns in the country. It represented a leadership opportunity to businesses to drive forward the prosperity of the town by drawing on their enterprise, initiative and knowledge. Members referred to the success of the implementation of the Late Night Levy and highlighted that the BID would assist day time and retail activities as well as the late night economy.

RESOLVED THAT

1.    the principle of a  Business Improvement District (BID)  in central Cheltenham be supported

2.    authority be delegated to the Managing Director Place and Economic Development in consultation with the Cabinet Member Development and Safety to make decisions in respect of the Council’s obligations under the BID legislative process

3.    the current predicted financial shortfall in the BID process be noted and officers be requested to identify a suitable solution to be reported to the Cabinet Member Development and Safety.