Owner of Peterborough department store Beales criticises BID bosses over levy payment terms

A business owner in Peterborough has criticised bosses of the city’s BID for not allowing firms to pay their levy contributions in instalments.

Tony Brown, chief executive of the department store Beales, in Westgate, says the decision is a disgrace – particularly as businesses come under increasing pressure from record inflation rates, higher interest rates and soaring energy costs.

Mr Brown said it seemed that the Peterborough BID was ‘deaf’ to the needs of companies.

He said: “I think it's an absolute disgrace.

"We work with a number of BIDs all of them have given us time to pay as other BIDs understand the true nature of the cost of living crisis we are all going through but Peterborough BID has lost the plot by simply saying ‘no’.

He added: “We are not asking for anything other than time to pay, my email to them explains the difficulties every business is having to deal with.

Mr Brown added: “I believe this affects all Peterborough BID levy payers.

"The BID is void of understanding in this matter it simply has no idea what levy payers are having to contend with if they did they would be helping not acting deaf to the situation.”

Under the rules of the Business Improvement District (BID), most of the businesses within its defined area have to pay an annually levy of 1.5 per cent of their rateable value to fund the BID’s work. The levy is expected to raise about £1.8 million over five years.

About 84 per cent of the 419 businesses within the area voted last year in favour of the BID being set up and so also agreed to the levy.

In an email reply to Mr Brown, and which has been seen by the Peterborough Telegraph, the Senior Local Taxation Officer for Peterborough City Council, which collects the levy, states: “I appreciate this is a difficult time for your business but please be advised that there is no discretionary facility to allow payment of the BID levy in instalments.

"All businesses in the Business Improvement District are required to pay the BID Levy in full as stated on the rear of the invoice and this is a corporate decision.

She adds: “Money from the levy paid by businesses is ring-fenced and invested into the city’s Business Improvement District (Peterborough Positive) and pays for initiatives out-lined in the business plan, which was written alongside Peterborough’s business stakeholders ahead of the ballot vote in autumn 2021.

The levy bills were issued to businesses in the Business Improvement District area last July for the financial year April 1, 2022 to March 31.

The BID’s goals are to improve safety in the city centre by offering a well-managed, welcoming and safe city centre, to organise and co-ordinate events to ensure a memorable experience for all city centre users, and marketing to promotes the city to attract shoppers, tourists and business investment opportunities.

The BID is also expected to build a business community within the city centre and to improve communication between businesses and with the council and other partners.