East Yorkshire businesses hit out over tourism tax summonses

More than 1,300 businesses from Staithes to Spurn Point with a rateable value of more than £12,000 have to pay a levy, equating to 1.5 per cent on their rates, to a private company, the Yorkshire Coast Business Improvement District (BID).

It follows a ballot in 2018, which was passed by a margin of 217 in favour with 175 against, on a turnout of just above 29 per cent.

The BID aims to raise £5m over five years to spend on projects that promote tourism and improve trade, with East Riding (ERC) and Scarborough Councils collecting the money.

Three years of bills have gone out, but a total of £717,310 is still outstanding, according to figures in a freedom of information request.

ERC has summonsed a number of businesses refusing to pay the second and third year bills, after taking legal action last year over non-payment of the first year’s bills.

However Scarborough Borough Council, which held the original ballot, has not taken legal action despite being owed the lion’s share – a total of £627,819 for the first three years. A total of 668 accounts had no payments in 2020/2021.

SBC didn't respond to a request for a comment.

In contrast, East Riding Council is owed a total of £89,491, with 89 unpaid in 2020/21. Bridlington hotelier Adrian Vodden and amusement arcade owner Eddy Chapman, vice chairman of Bridlington Leisure Association, are among businesses summonsed to Beverley Magistrates’ Court on March 10.

Mr Vodden said his gas bill had nearly doubled to £6,872 a month and he needed the BID money to pay for utilities.

One of the BID’s latest ventures is installing statues of puffins along the coast, but Mr Vodden said his guests come for golf, not puffins. He said: “My guests come to Bridlington to play golf, go on the beach, eat and drink round the town. We don’t need the BID, it’s not wanted, it’s not needed. It’s so unfair we feel as though we have been singled out.

"If there’s 1,400 BID members across the Yorkshire coast, why is just East Riding Council pushing this? Scarborough (Council) must be concerned about something not to push it.”

The BID said it was up to the councils “to use measures they feel necessary” to collect the payments.

A statement thanked business who support what they are doing, adding: "We are pleased and excited to be able to mobilise the delivery of many projects, including Route YC, The Odyssey as well as supporting 35 different projects across the Coast.

"The BID is incredibly excited about the positive impact these projects will have for businesses, residents of the Yorkshire Coast and visitors to the area."

An East Riding Council spokesperson said: "East Riding of Yorkshire Council will continue to recover monies due following receipt of a Liability Order on Year One debts. If payment is not received, the outstanding cases will be sent to our Enforcement Agent for recovery.

"The Council are instructed by the Yorkshire Coast BID Company on the stages of recovery, as such we have acted on their request."