Rebels refusing to pay levy on city centre improvement plan

A total of six of the 750 companies involved in the Hull BID are facing visits by bailiffs after declining to pay the scheme’s annual levy.

The dispute comes two years after 30 participating firms who refused to pay were taken to court by the city council – which collects the money on behalf of the BID – and a month before members will be asked to vote on whether the project should continue for another five years.

Bailiffs have now been appointed to enforce court orders against 44 businesses for non-payment since the scheme began.

The scheme, now the second largest of the 110-plus BIDs in the UK, was set up in 2006 with the aim of improving the city centre environment and its commercial output.

It charges all firms within the district one per cent of their rateable value but has faced opposition from within almost from the outset by some traders who say they want no part of it as it does little for them.

Opponents say many of the initiatives it funds, such as extra police patrols, removing graffiti and staging events, should be paid for from their existing business rates and taxes.

But BID manager Kathryn Shillito denied there was a problem and said the scheme was well-supported.

She said: “I meet businesses all the time and the feedback I get from the vast majority is they are happy about what’s happening in Hull city centre.”

Mrs Shillito said she was confident of securing a “yes” vote in next month’s poll.

“I can’t guarantee it but it’s my job of really getting that message across, spending time outlining what we have achieved and what we are looking to achieve over the next five years,” she said.

“It’s important to stress what would the city look like without the BID.”

She added: “It’s their (the businesses) money, it’s spent according to how they want it to be spent. Hull BID is funded by a one per cent levy and the amount in kind in support and funding we have drawn in is hundreds of thousands of pounds. I think it means the levy is a very reasonable amount to pay for what we recoup into the city.”

The scheme has generated £2m in income from the levy over the last five years.

Its operating costs over this period are £614,269, comprising £541,269 spent on wages, administration costs and collecting the levy, £30,750 on software, £22,200 on “sundry expenses” and £20,050 on renting office space.

Some critics say the BID’s events, such as last week’s Yum! food and drink festival, only benefit certain businesses.

Andrew Allison, national grassroots co-ordinator of the Taxpayers’ Alliance, said: “For the thing to work everyone has to pay but the only people who are going to benefit are people in the retail and leisure businesses.

“The local butcher doesn’t want to be in it because he’s getting nothing from it. And if you’re coming into the city for an event you are not going to buy a new bed. You can say the same about accountants and lawyers and I can see a case for them opting out.

“It’s what the council and police should be doing anyway.”

This year the BID has also organised a fashion week and produced 20,000 brochures advertising the wares of 34 of Hull’s finest cafe bars and restaurants, the latter in an effort to boost the city’s evening economy.

If the BID does continue it is proposing the introduction of a levy threshold that would see the charge waived for any company with a rateable value of less than £5,000.

Those firms below this threshold would still be able to opt in to receive individual support if they wish.

The result of the ballot will be announced on September 15.