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> Alternative to the BID?
Richard Garvie
post Jan 4 2011, 11:57 AM
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I've been thinking a lot about the bid, and how national companies can opt out yet have a say on the ballot for the project. As the council would support the BID project, could we not have a hybrid version of the scheme where instead of doing it as a BID enforced levy, the council could raise business rates by .5% for everyone in an agreed area and then hand the money to the TCP to use to promote the town? Rather than creating a new post, have Newbury Events as part of the TCP to look after this money. If it proves a success, similar schemes could be run in Hungerford, Thatcham and Theale.

I've came to the conclusion that the BID scheme as it is operated around the UK is an unfair levy against local businesses and those national chains who do the decent thing and make a contribution. Unless there is a way to stop companies like TESCO from opting out, I just don't feel I can support it.
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dannyboy
post Jan 4 2011, 01:24 PM
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Why would I want to pay an extra 0.5% to promote the town? Surely it is an unfair levey against me?
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user23
post Jan 4 2011, 01:55 PM
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Can the council raise business rates?

I thought this was set by central government.
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Richard Garvie
post Jan 4 2011, 01:57 PM
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Good point. Just thinking of a way to close that loophole, suggestions on a postcard then!! It just doesn't seem fair that some will pay the levy, whilst certain national firms will be allowed to opt out.
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Iommi
post Jan 4 2011, 02:04 PM
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Why not just drop the idea of a BID?
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Richard Garvie
post Jan 4 2011, 02:06 PM
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There is always that!!!
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Simon Kirby
post Jan 4 2011, 05:28 PM
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Richard, I've not seen any reference to nationals being able to opt out of a BID. Can you show me how that's possible please?


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Simon Kirby
post Jan 4 2011, 05:33 PM
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QUOTE (Iommi @ Jan 4 2011, 02:04 PM) *
Why not just drop the idea of a BID?

What Richard is struggling to understand is that a BID is something the retailers in the defined district of the BID do for themselves, or indeed don't do if that's what they decide. Point is it has little to do with the state and is accountable only to the retailers themselves.


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user23
post Jan 4 2011, 05:57 PM
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QUOTE (Simon Kirby @ Jan 4 2011, 05:33 PM) *
What Richard is struggling to understand is that a BID is something the retailers in the defined district of the BID do for themselves, or indeed don't do if that's what they decide. Point is it has little to do with the state and is accountable only to the retailers themselves.
You're forgetting that Richard now represents retailers in Newbury.
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Richard Garvie
post Jan 4 2011, 06:09 PM
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I don't struggle to understand it, it is perfectly clear that companies such as TESCO opt out of the BID style projects all over the UK. There is a direct quote in this article RE: TESCO

http://www.pressandjournal.co.uk/Article.a...779146?UserKey=
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Richard Garvie
post Jan 4 2011, 06:10 PM
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QUOTE (user23 @ Jan 4 2011, 05:57 PM) *
You're forgetting that Richard now represents retailers in Newbury.


Not quite, but as a business owner I share simlar concerns and interests as other small businesses. Working in the retail development / regenration sector also gives me a little knowledge on this subject too.

EDIT: Notice how nobody is forthcoming at answering the following questions:

Who is paying for the research and study into the feasability of the proposed BID scheme?

Who will be apointed to run it, what is the selection process and how much will they earn?

What are the benefits to smaller traders and businesses / independents?

Will all nationals have to pay the levy? If not, why not?

And is there a place we can see the plans?
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user23
post Jan 4 2011, 06:22 PM
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QUOTE (Richard Garvie @ Jan 4 2011, 06:10 PM) *
Not quite, but as a business owner I share simlar concerns and interests as other small businesses. Working in the retail development / regenration sector also gives me a little knowledge on this subject too.
Sorry, it's just you said you were speaking for traders in another thread.

Ah yes, the Newbury Stadium Project you put on your CV. How's that going by the way?
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dannyboy
post Jan 4 2011, 07:02 PM
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QUOTE (Richard Garvie @ Jan 4 2011, 06:10 PM) *
Not quite, but as a business owner I share simlar concerns and interests as other small businesses. Working in the retail development / regenration sector also gives me a little knowledge on this subject too.

EDIT: Notice how nobody is forthcoming at answering the following questions:

Who is paying for the research and study into the feasability of the proposed BID scheme?

Who will be apointed to run it, what is the selection process and how much will they earn?

What are the benefits to smaller traders and businesses / independents?

Will all nationals have to pay the levy? If not, why not?

And is there a place we can see the plans?

Maybe those with the answers have better things to do that read this forum?
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Simon Kirby
post Jan 4 2011, 08:01 PM
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Richard, the Regulations that enable BIDs in England are here. There does not appear to be an opt-out. The BID proposal must define the geographical area of the BID, and it must say whether all of the non-domestic ratepayers pay the levy or just a specified class. I'm assuming the regulations are substantially the same in Scotland as in England so my guess is that the person complaining about Tesco opting out in Elgin is simply using misleading language and in fact the BID's area simply doesn't include a Tesco store.



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dannyboy
post Jan 4 2011, 08:27 PM
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is simply using misleading language

what for political gain?!? never!?!

btw - you can't opt out of a BID.
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Richard Garvie
post Jan 4 2011, 08:36 PM
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I don't know how I've used misleading language Danny, I think you will find Simon was referring to the article. As for opting out of the BID, if you google TESCO and BID opt out or something along those lines you should find various references.
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Simon Kirby
post Jan 4 2011, 09:03 PM
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Like I say, the Regulations don't appear to have an opt out. I've googled as you suggested, but other than this thread here I can't find a reference to it.

An opt-out would be pointless when you think about it - the whole purpose of making the levy mandatory is to defeat the kind of moral hazzard an optional contribution to improving a retail district creates.


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Richard Garvie
post Jan 4 2011, 09:07 PM
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I have to admit I stumbled over the reports by accident when researching the bid. An aquaintance who worked on the Spaldind bid said there were a number of companies who would "opt out" had that project ever got off the ground. I'll keep digging to see what the detail is.
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Simon Kirby
post Jan 4 2011, 09:18 PM
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QUOTE (Richard Garvie @ Jan 4 2011, 06:10 PM) *
EDIT: Notice how nobody is forthcoming at answering the following questions:

I'll have a go then:

Who is paying for the research and study into the feasability of the proposed BID scheme?
Don't know, but the development costs can be recovered from the levy, and the details of this form part of the BID proposal.

Who will be apointed to run it, what is the selection process and how much will they earn?
The BID is run by a not-for-profit company set up just for that purpose, but I suspect you're asking how much that company will pay its directors and staff. It'll be up to the BID who will be accountable to its board.

What are the benefits to smaller traders and businesses / independents?
The BID benefits everyone in the BID. Exactly what those benefits are is part of the BID proposal, and if a majority of the businesses in the district don't agree that the benefits are worth the levy then the BID proposal fails and it doesn't happen. Perhaps the question you are asking obliquely is whether the town's independent traders have the business insight to invest in their success?

Will all nationals have to pay the levy? If not, why not?
Everyone within the scope of the BID pays the levy, though the BID's scope is both geographic and by business class so not every business in Newbury will be in the BID. The BID proposal defines this scope.

And is there a place we can see the plans?
Are you a town-centre retailer? You could ask the TCP, but there's no particular reason why they'd want to publish the details before they're ready.


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user23
post Jan 4 2011, 10:13 PM
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QUOTE (Simon Kirby @ Jan 4 2011, 09:18 PM) *
And is there a place we can see the plans?
Are you a town-centre retailer? You could ask the TCP, but there's no particular reason why they'd want to publish the details before they're ready.
Exactly. There's no requirement to publish the plans to punters like you and I.
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