Contact: John Rees-Evans, Ext: 6628 email:[email protected]

1. Summary

1.1 This report outlines the proposal by Winchester City Centre Partnership for Winchester city centre to become a Business Improvement District. It explains what this means to both the local business community of Winchester and to Hampshire County Council. It recommends support in principle pending more detailed proposals being available, at which time a further Cabinet report will be presented.

2. Introduction

2.1 What is a Business Improvement District (BID)?

· Legislation to set up Business Improvement Districts was part of the Local Government Act 2003. A BID is a partnership between a local authority and the local business community.

· Businesses within the designated BID area pay an additional levy on their National Non-Domestic Rates (NNDR), which is ring-fenced to fund improvements to the area. These can be in the form of cleaner streets, improved security, better marketing etc., or whatever the business community decide they need to help the prosperity of their area.

· BIDs can be catalysts for business engagement, accountability and action, with direct benefits for business. They also provide fairness in ensuring that everyone who stands to gain shares the cost.

· A BID can be developed in any business location (anywhere there are non-domestic rate payers). A BID can be proposed by any non-domestic ratepayer, property owner, or other key stakeholder with an interest in the BID area. Businesses will identify the area and the issues, and put together a proposal in the form of a Business Plan which should include delivery guarantees, performance indicators and management and delivery structure.

· The "Levy" is collected by the Local Authority for the area in addition to the business rate collection and passed to a legally constituted body which manages the delivery of the Business Plan.

· BID proposals are voted on by the non-domestic rate payers who will be responsible for paying the BID levy. Businesses must vote in favour of a BID in order for it to be established. The vote is a postal ballot conducted by the local authority.

· Baseline data on current Local Authority investment or services in the area is always determined before a Business Plan is drafted, in order to ensure that any activity funded by the BID is additional to existing plans.

· A successful vote for a BID must meet two tests. More than 50% of votes cast must be in favour of the BID and the positive vote must represent more than 50% of the rateable value of the votes cast.  A BID's mandate is for a maximum of 5 years. A BID wishing to continue beyond 5 years must reaffirm their mandate through another ballot.

3. BIDS - The National Picture

3.1 BIDs were started in North America where there are now 1400 BIDs. 98% of these were renewed after the initial five year period. In the UK, 30 BIDs have been established including 4 Industrial Estate BIDs. These 30 BIDs involve 15,000 businesses who between them have raised £15million in their first year.

4. BIDS - The Regional Picture

4.1 In the South East, there are 3 BIDS - Reading, Kingston-Upon-Thames and Brighton. There are no Industrial Estate BIDS in the South East yet.

5. BIDS in Hampshire

4.1 Segensworth

Segensworth Business Forum is currently working with Hampshire County Council, Fareham Borough Council and Winchester City Council to achieve Industrial Estate BID status. Hampshire County Council Economic Development Office helped secure SEEDA funding for the Segensworth Business Forum for a Project Manager to take this idea forward. It is likely that a ballot will take place in 2007. Businesses will be working to address and fund issues such as transport, environment and security.

4.2 Winchester

The BID process was launched in October, led by Winchester City Centre Partnership with support from Winchester City Council(who have contributed £30k towards an additional post). A six month consultation with businesses has started with the vote planned for Summer 2007. The BID area is likely to cover the city centre, from the Station down to Chesil Street in which there are around 700 businesses including many retailers and many Hampshire County Council locations. The main messages to businesses in Winchester to persuade them to vote positively are that:

· The Winchester BID will seek to create a business-led programme of investment throughout Winchester City Centre, raising the quality of experience for businesses, residents and visitors The BID is an investment in the local trading environment providing services over and above the current service provision

· The BID will be managed by businesses in Winchester for businesses in Winchester

· Businesses will agree the content of the Business Plan and this will include delivery guarantees, performance indicators and management structure for the BID delivery.

4.3 The draft Business Plan for the Winchester BID states that the BID will seek to:

Improve street management e.g. through enhanced cleaning services, Winchester in Bloom, Street Furniture, Festive Decorations, Pigeon Management and Enhanced Recycling scheme for businesses.

Improve community safety e.g Extend the Shop-watch and Pub-watch schemes, employ City Centre Rangers, enhance graffiti and fly-posting service

Improve access e.g looking at parking, public transport, park and ride, cycling, pedestrians and information.

Better manage the evening economy by developing a co-ordinated programme of activities to reduce crime and the fear of crime

Promote business e.g raising awareness through a marketing campaign of Winchester as a quality destination to retail, leisure, employment and education markets

Increase the involvement of the business community e.g. through the creation of a strong lobbying voice, networking events and business support.

5. Benefits for Hampshire County Council

5.1 As the largest employer in the City, Hampshire County Council is making a substantial contribution to the welfare of the City both directly in the form of investments such as the new Discovery Centre, access arrangements etc., and indirectly through the expenditure of its employees. However, there continue to be threats to the economic vitality of the City and additional resources derived from the BID would help enhance the City's competitive position, and the benefit to County Council employees working in Winchester.

5.2 If a successful BID ballot is achieved for Winchester, Hampshire County Council will be seen as a key stakeholder and partner in the drive to raise the quality of experience for businesses, residents and visitors. Hampshire County Council's contribution will help the BID achieve the objectives set out above and staff will benefit from enjoying a safer, cleaner and more attractive environment.

6. Financial Implications

6.1 Winchester City Council, Hampshire County Council and Hampshire Constabulary are among the largest of non-domestic ratepayers to be included within the BID area. Combined with other large rate-payers, ( rateable value £250,000+) they will make a contribution totalling over 45% of the overall BID contributions. As a business ratepayer in the Winchester City BID area, Hampshire County Council will be balloted in 2007. The direct financial implication for Hampshire County Council would be £19,484.29 p.a. for five years adjusted for inflation (based on a total rates bill of £1,298,952.84 in 2005/06), if the proposed levy of 1.5% were approved.

7. Options for Hampshire County Council

7.1 Hampshire County Council is the largest employer in the BID area and already makes a strong contribution to the local Winchester economy in terms of our use of local businesses and staff patronage of shops. There are several options that Hampshire County Council can consider in respect of the BID for Winchester.

a) Hampshire County Council can support the proposal for a BID in principle and consider whether to vote in its favour when the Business Plan has been finalised - Hampshire County Council would then be supporting an initiative which offers an opportunity for engaging the business sector in a partnership working towards sustainable economic prosperity for the city.

b) Oppose the proposal in principle - this would give the impression that Hampshire County Council did not endorse initiatives to support the future economic vitality and the environment of its host city.

c) Not be involved and wait to see the outcome of the ballot - again this would be seen as lack of interest in the future of the City.

8. Impact Assessment

8.1 Race and equality impact assessment has been considered in the assessment of these applications. No adverse impact has been identified.

9. Recommendation

That Hampshire County Council, in principle, support the development of a Business Improvement District for Winchester City and be involved in the development of the BID Business Plan.

LINKS TO THE CORPORATE STRATEGY

Hampshire safer and more secure for all - Yes

Maximising well-being - Yes

Enhancing our quality of place - Yes

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

N.B. the list excludes:

1. Published works.

2. Documents that disclose exempt or confidential information as defined in the Act.

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