Landlords will not be allowed a free ride in business improvement districts if amendments to the Local Government Bill are approved this week.
Under the legislation contained in the Bill, which is at committee stage in the House of Lords, only business rates payers will have to pay for a BID, while landlords will contribute only if they wish. The BPF claims that the policy will encourage “free-riders” and will make BIDs unsuccessful.
Amendments submitted this week by former environment minister Lord Jenkin of Roding will oblige all landlords in a BID to vote on whether or not to set up a BID, and if the vote is passed, they will have to contribute towards its costs.
The government has so far opposed the change, which is supported by the BPF and the Central London Partnership, claiming that it would effectively create a new tax. But Jenkin said: “It is not a tax. It is a debt that can be enforceable in a court, which is triggered by the vote. It is a payment that is raised by specific services. And moreover, without it, these BIDs will fail.”
In 1998 Jenkin submitted a private Bill to introduce BIDs, which was thrown out by the government.
