Councillors will this week decide whether to back a controversial scheme which could force traders to pay a supplementary tax to make parts of the city centre more attractive.

Members of Brighton and Hove's policy and resources committee will vote on whether The Lanes and the North Laine should be turned into a business improvement district (BID).

A BID is where traders pay a levy on their business rates - usually about one per cent - which is spent on items such as Christmas lights, graffiti removal, marketing and street cleaning.

Traders decide how the money is spent. In this instance, it could be up to £850,000 over five years.

If councillors approve the idea, the Brighton and Hove Business Forum, which is driving the proposals, will hold a referendum in March to see which businesses wanted to take part.

If more than 50 per cent of traders who vote say yes to a BID, it will be implemented.

Those who vote against or who do not vote would then be compelled to join the scheme.

Spiralling rates are a huge problem for traders in Brighton and Hove, who often complain they get little in return for their money. Convincing them to pay more may prove tricky.

Confusion over how BIDs work, financial hardship and a deep-seated hatred of the universal business rate among small businesses may conspire to block the scheme.

But advocates says BIDs are the best way for businesses to shape their own destiny.

Tony Mernagh, chief executive of the Business Forum, said: "A BID is an opportunity for the business community to decide how their money is spent and make improvements that will translate into increased profits.

"One of the main benefits is that you get rid of the free-loaders, people who enjoy the benefits of Christmas lights and cleaner streets but aren't prepared to put their hand in their pocket.

"There is a guarantee that the money that is raised is above and beyond the minimum that councils are expected to provide, so businesses are not paying twice for services they should be getting anyway."

Deputy council leader Sue John said: "The Lanes and the North Laine are a unique part of the city and if they were to become part of a BID it would attract still more shoppers to sample their wares."

BIDs originated in America in Seventies and have rejuvenated hundreds of cities in the past 30 years. So far 16 BIDS have been established in the UK, the latest in Liverpool which was approved earlier this month.

Critics say they are too costly - roughly £50,000 is spent on feasibility studies and referenda before a BID is launched - and give businesses too much influence in how towns and cities are shaped.

The policy and resources committee meets on Thursday.

Tuesday, November 8, 2005