Spalding traders launch fight against Business Improvement District after receiving backdated bills
Angry traders have questioned the validity of a vote that established a new Spalding business group which they will be forced to pay for — with some saying they never had a ballot.
Firms in the town centre have received their first Spalding Business Improvement District (BID) bills — which have been backdated to September despite only back office work happening in that time and no manager having been appointed yet.
Almost 20 business owners gathered at a meeting on Tuesday and shared their anger at the levy which some labelled an unaffordable burden. Some even said they are considering moving out of the town centre.
The meeting was organised after the Spalding Against BID Facebook page was set up.
The BID — which organisers promised could raise £1million over five years to help boost the fortunes of the town — was brought in as a result of a very narrow ballot last summer, with just one vote tipping the balance.
A total of 115 votes were cast from a business community of more than 400 during the ballot, with 58 in favour. South Holland District Council had 18 votes due to the number of properties it owns in the town centre and cast them in support of the BID.
This week’s meeting was told that one beauty salon has received the bill but did not get a voting form, while another firm said it did not receive all three votes it should have had, despite chasing organisers.
Traders now want to hear from others who may not have received a vote in order to help challenge the decision.
Julian Wheeler, of Welland Photo Services, said: “As a group coming forward we would like to hear from any trader within the catchment area who didn’t receive a ballot paper but have subsequently received a levy demand.
“If traders didn’t receive the ballot it will help to reinforce our potential room to challenge the validity of the whole ballot on a couple of fronts rather than the fact that we are relying on one spoilt ballot paper.
“We will be exploring every avenue we have to challenge this ballot on a legal front.”
Any business which did not receive a vote or would like information should contact julianmisty61@gmail.com
The council said work had been taking place behind the scenes to set up the board along with administration which includes allowing the levy to be sent out and received.
A spokesman said: “As is standard practice for these processes, a verified list of data was provided by the council to Civica, an electoral services provider, who sent a notice of ballot to all eligible businesses as well as the voting slip for return by post. As with any election conducted, the council’s returning officer oversaw this process with the usual checks, proofing and sign-off taking place throughout.”
Questions to be posed to BID leaders
Traders will be posing questions to the leadership of a new business group after a call was made to pause its implementation.
Retailers, hairdressers, beauty businesses, undertakers, nurseries and other town centre companies have come together to fight against the Spalding Business Improvement District as they face a bill which has been backdated six months.
The levy demands, which covers the period between September 1 to March 31, were issued on February 17 with an onus to pay the amount within 14 days. This bill is one of the main ways in which the BID will be funded to undertake work outlined in its business plan which includes tackling anti-social behaviour, management of pedestrianised area and organising events.
Some of the town’s traders agreed during a meeting on Tuesday, following the creation of the Spalding Against BID Facebook page, have agreed to compile a list of questions to be posed to Spalding Town Board - which was established to govern the BID.
However, Julian Wheeler questioned why the BID could not be paused for two to three years to give firms some breathing space due to the changing economic climate.
He said that the initial feasibility study was carried out prior to the Ukraine War and the resulting issues with inflation and rising costs.
Mr Wheeler said: “Since then prices have risen, the new elected government has taxed businesses by increasing employer national insurance. Can you say with hand on heart that this is a necessary business expense? This is going to cause hardship.”
He has also questioned how the members of the BID board were appointed.
Mr Wheeler said: “Who elected them to spend our money? There’s no accountability in the voting procedure.
“This is going to take a lot of good will from business owners. It’s the one bill we have to pay up front. It’s a money grab.”
He also questioned why the payments for the levy could not be spread out.
But Mr Wheeler also suggested that more is made of the river to improve the fortunes of the town and called for the Coronation Channel to be used as a paddle board venue.
Emma Peake, who runs Daisy’s in The Crescent, has expressed concerns about the billing period and the fact that a BID manager has not been appointed - which could have a knock on effect by missing out on important forthcoming events.
She said: “Nothing is planned out for the 80th anniversary of VE Day. These events are going to be missed - what are we paying for over the last six months?”
Paul Parkin told the meeting that he was a taking a ‘long shot’ in challenging the BID levy.
The physiotherapist said that his type of business was not specified on the list which was sent out with the ballot paper.
He said: “I don’t sell anything I am a physiotherapist. I am a physiotherapist in law and not on the list.
“That might be a good way in to get it looked at by the Secretary of State.”
Mr Parkin went onto say that firms had 28 days after the vote was published to lodge objections but did not know he was liable to pay until the bill came through in February.
Rachel Beresford, owner of Munchkins Nursery in Priory Road, has received a BID levy for £264.27 but does not feel that the new body will benefit her business.
She highlighted the challenges faced by nurseries, which includes the change of business rates to number of children registered with Ofsted rather than floor space, along with increased national insurance costs.
Rachel said: “This is a further burden - and one that I expect no benefit from.
“I am tempted to leave the town centre.”
BID is a ‘positive’ development for town
A new business group says it promises a ‘new and positive opportunity’ for Spalding traders to make changes to the town.
The team leading the new Spalding Business Improvement District (BID) says it understands the concerns raised about those now receiving their mandatory bills for the new body — but said larger retailers will bear the brunt of the cost.
Catherine Duce, of the BID board, said: “The creation of a Business Improvement District is a new and positive opportunity for Spalding’s businesses to have a real and meaningful say on the change and improvement they want to see in our town centre.
“This is money from businesses, for use by businesses, in the interest of businesses, and all those who contribute are encouraged to get involved with shaping our plans and to help dictate how these funds are spent.
“The overwhelming majority of businesses within the BID will pay no more than £1 per day, with the vast majority of the funds coming from a small number of large national operators within the BID area, namely the national supermarkets in the town.
“We understand the concerns some may have about an additional cost to pay, but nobody understands both the challenges and opportunities our businesses and Spalding are faced with better than all of us who depend upon it. This is why it is so important that businesses in the town come together and use the pooled funds in a way that returns value to local businesses and supports our trading environment."
Petition launched to fight BID
A concerned town trader has set up a petition to fight the imposition of a levy on businesses.
Lynne Thorne, owner of Afterglow tanning salon, has already attracted 174 names on her petition which calls for a challenge to the mandatory fee town centre traders must pay to fund the Spalding Business Improvement District.
The BID effectively passed by one vote, with one ballot rejected.
She said: “It’s going to a hard year for any business in any town with the increase on taxes.
“Trying to survive the additional costs incurred without passing them all on to our consumers is worrying for small businesses in Spalding.
“We are not averse to improving the town centre, but we have questions surrounding the BID. How did this come about in the first place?
“Who made all of the decisions for our money, because we certainly didn’t. We didn’t want the BID in action, so for it to win by one vote because one wasn’t readable is astonishing.
“If we are paying to make improvements to our town do we get a say in how our money is spent? Or is it just another money grabbing tactic for already struggling businesses?”
The petition is available to view at the Change.org website under the title ‘Challenge the Imposition of Business Improvement District in Spalding’.
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