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.

Why would I want to pay an extra 0.5% to promote the town? Surely it is an unfair levey against me?

Can the council raise business rates?

I thought this was set by central government.

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.

Why not just drop the idea of a BID?

There is always that!!!

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?

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.

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=

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?

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?

Maybe those with the answers have better things to do that read this forum?

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.

is simply using misleading language

what for political gain?!? never!?!

btw - you can't opt out of a BID.

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.

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.

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.

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.

Exactly. There's no requirement to publish the plans to punters like you and I.

Last month, I thought an unelected group fronted by an architect, retailer, developer and lawyer about to ballot high street businesses for a 1% shops tax might be worth discussing.

However, I'd henceforth like to rename it the Boring Introspective Discussion.

Thanks RG.

I meant in general, but I see your guilty conscience has you on the defensive.

At the end of the day Bofem, if the proposal is a good one, nobody is earning a big salary, it's not one of the people setting it up running it and it's going to benefit all of the traders then great. If they can guarentee that all businesses will pay it, then it could be a really positive thing. It's just in my experience, these things tend to be about giving one or two people a high paid job, and businesses on the edge of the zone have a relatively small benefit than those in the middle of the zone. Most independents and smaller businesses are on the fringe because they can't afford to be in the thick of it, so if they are going to see very little return for a hike in business rates with the bulk of the cash being spent on directors and staffing, what's the point?

There are some good examples of how the BID scheme can work, Plymouth seems to be quite a good one. The people that need to be thought about most are the independents and stores that make our town centre diverse. If we end up forcing them out of town altogether through increasingly high rates, the town will be a worse place because of it. I for one would not like to see additional empty units of a town centre full of national retailers, some of the smaller shops are quirky and offer service you won't get elsewhere.

Also, some of the smaller pubs appear to be struggling to stay afloat as it is. Would they be forced to pay the extra levy?

HMV & Waterstones are struggling too. Should they have to pay up?

That's a good point Danny. If the decision is to have a BID, everyone should contribute, no exceptions. If local traders / pubs are forced to pay the levy, so should the national chains (struggling or not). The bigger picture is this: At a time where even national chains are closing stores because they are struggling to generate a profit or break even, is it right to expect local traders and pubs who already have some of the highest business rates in the UK to pay more in times of hardship? Would the BID levy be the difference between HMV / Waterstones staying open or not as an example)? How many other national chains haqve stores in town that are struggling to turn a profir? Would this additional levy encourage these companies to leave town?

So the best thing is not to bother with such things. The only people that do well out of them are the consultants.