Former conservative Environment Secretary Lord Jenkin today attacked government proposals for business improvement districts (BIDS).
At a conference on the future of the US-inspired initiative, which encourages landlords and tenants to co-operate in order to improve areas, the DTLR confirmed that they would not oblige landlords to contribute. The cash will instead be raised as a top-up of business rates, but only if the majority of local businesses agree.
Jenkin, who introduced a private members bill on BIDS into the Lords in 1997, said that this would place a burden of providing long-term improvement on short-term leaseholders. “If you are a short-term leaseholder, you won’t be very interested in long-term change. But if you do pay for improvements, the landowner will get the benefit,” he said.
BURA managing director Jon Ladd also expressed doubts about the way BIDS would be funded. “There is mileage in looking at making owners pay. The schemes in the US work brilliantly, because owners, who have a vested interest in the area, are the investors.”
Lord Jenkin added that businesses would end up paying twice: “They will pay to improve the area, and once it improved the landowners will push up their rents. They aren’t going to like that.”
EGi News 20/09/01
