City centre businesses to be asked to vote for £2m-a-year tax
MORE than 1,000 businesses and organisations in Leeds will be asked to approve a new tax that plans to raise £10.9m over the next five years to fund a Business Improvement District (BID) covering the city centre.
BID4Leeds has been established as a not-for-profit company and will run the BID, if plans are approved in the next six weeks.
The business plan has been published and is being 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 with premises that have a rateable value of £60,000 or more will pay 1.25% of that value each year, regardless of whether they vote for the BID. The charge to individual businesses will range from £750 to £25,000, with the average payment being £2,000 a year.
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. It is estimated there are 1,090 businesses which would be subject to the payment.
If the BID is approved it will start work on April 1st, with the first term running for five years. A further ballot would then be required to renew it.
The BID must pass two tests in next month’s vote – first, a simple majority of voters and, second, those voting in favour must represent a majority of rateable value.
John Bywater, chairman of BID4Leeds, said: “Other towns and cities are investing in themselves and looking ahead.
“There is also now greater competition to the traditional high street model, heightened customer and client expectations and increased pressure on public sector resources. I am confident that Leeds can do better and the Leeds BID has an important part to play in this. I would urge local businesses to vote yes.”
A feasibility study has been carried out and this was followed by a period of consultation with the businesses that would potentially fall inside the BID area.
The key priorities which have been identified include aiming for higher standards in place shaping and investment in the city, raising the profile of the city with consumers in the immediate and wider geographic area to increase footfall, dwell time and spend along with coordinated marketing and event activities to ensure greater impact and visibility.
Leeds City Council’s executive member for transport and the economy Cllr Richard Lewis said; “Creating a Business Improvement District will create a step change in the ability of Leeds to improve and promote its city centre as a leading European business location, a top UK retail destination, and a source of new jobs and economic growth. Private sector led and public sector backed, Leeds City Council has given full support to the BID.”
