Monday Interview: Big business ‘expects Leeds to step up’

“COMPANIES are investing hundreds of millions of pounds in Leeds and they expect the city to do more,” said John Bywater, chairman of BID4Leeds. “They want the city to step up to the mark.”

BID4Leeds is pushing for the creation of a business improvement district (BID) that would generate £10.9m over the next five years to be invested in Leeds city centre.

The proposed BID area covers the city centre within the ring road and the river taking in south of the railway tracks to the water, east to Quarry Hill, north to the cultural quarter, arena and university and west to Wellington Street and Whitehall Road.

If the BID is approved if the voting period that begins this week, then all businesses within its boundaries that have premises with a rateable value of £60,000 or more will pay 1.25% of that value on top of their existing business rates. It is estimated there are 1,090 businesses which would be subject to an average payment of £2,000 a year, although the cost to individual businesses would range from £750 to a maximum capped at £25,000.

“With business rates the money goes to London, then comes back to Leeds and the city council have to spend it on what they have to spend it on. It does not get fed back to the business area,” said Mr Bywater.

“If we can get the businesses of Leeds to sign up and use the money that is raised – about £2m a year – the BID board will be responsible for the business voice.”

Support has already come from Trinity developer Land Securities, Mr Bywater’s former employer Hammerson – who are building Victoria Gate – Leeds Chamber of Commerce and Pinsent Masons, among others.

“When we spoke to Leeds General Infirmary and Leeds University, they said ‘include us in the BID’,” he said.

“The BID company will have a strong group – retail, leisure, offices, night-time economy, education, health and more. The group will be the people who say what the city centre needs.

“Does it look attractive? How do we make it look more attractive? What about marketing? The business voice? Get out to the wider world, be part of the Northern Powerhouse.

“The BID will get Leeds and its business voice to be heard. We will do what we can to raise the profile of Leeds as a destination for international businesses as we compete against London, Manchester, Liverpool, Newcastle, Paris.

“We have set out the priorities for the next five years and it’s all to do with growing business.”

BID4Leeds’ business plan focuses on projects around the themes of Welcome, Experience and Voice with the priorities being aiming for high standards, raising the profile and adding value. The projects, which range from small interventions through to large scale strategic investment possibilities, are designed to ensure a well-rounded provision for all business sectors being asked to invest in the BID.

The business plan has been published and sent to all organisations which are eligible to vote. The ballot will then be open from January 29th to February 26, with the result announced on February 27.

Businesses that will be subject to the levy can vote, and it will be approved if the yes vote achieves a majority of those who vote on two counts, a simple majority of voters who must also represent a majority of the rateable value of those organisations which voted.

“If I do have a worry it is people asking ‘why am I paying this money? Why aren’t the council doing this?’,” admits Mr Bywater. “The simple answer is the council can’t afford it.

“We have agreed with them a baseline document which sets out all of the things the council do and which will continue to be done by the council. The BID is all about additional activity.”

If the BID is approved it will start work on April 1st, with the first term running for five years. Although Mr Bywater does not want to commit the future executives of the BID company to specific projects, he is clear that the organisation will be judged on outcomes and achievements.

“In five years it will be measured on ‘has the BID delivered what the business plan said it would deliver?’,” he said, before clarifying the difference between the BID and some other partnership and pressure groups within the region.

“This is a delivery of business initiatives. It’s not a networking club.”