Crisis-hit businesses plead with council to find way out of controversial Yorkshire Coast DBID

A plea has been made to Scarborough Council to find a way out of the controversial Yorkshire Coast Business Improvement District (DBID) to help those impacted by the pandemic.
The DBID covers an area from Staithes (pictured) to Spurn Point.The DBID covers an area from Staithes (pictured) to Spurn Point.
The DBID covers an area from Staithes (pictured) to Spurn Point.

A solicitor acting on behalf of the Yorkshire Coast Levy Payers' Association, a group of local businesses who oppose the DBID, has written to the council outlining its concerns about the project and asking the authority to act.

The council’s Audit Committee will meet via Zoom on Thursday to examine the results of the Association of Electoral Administrators (AEA) review into the council’s role in the ballot, which lead to the DBID’s formation.

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The report had been due to be scrutinised in March but it was cancelled due to the coronavirus pandemic.

The report by AEA chief executive Peter Stanyon found flaws with the 2018 ballot process but concluded that “on the evidence presented to me I am satisfied that the ballot process was generally undertaken in accordance with the process prescribed by the [DBID] regulations”.

He went on to say that the ballot was “not administered as well as it might have been” and that he had “significant concerns” over parts of the process.

The DBID is made up of more than 1,300 businesses in the tourism industry from Staithes in the north to Spurn Point in the south with a rateable value of more than £12,000, who have to pay a mandatory levy into the DBID, calculated at 1.5% of their rateable value.

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The 2018 ballot of businesses, which was run by Scarborough Council, was passed by a margin of 217 in favour with 175 against, on a turnout of just above 29%.

However, it later came to light that 71 of the yes votes came from the councils involved in the process, including 38 from Scarborough Council.

The Yorkshire Coast Levy Payers Association have had Gareth Pinwell of Ashfords LLP outline their concerns ahead of Thursday’s meeting.

In a letter to councillors, Mr Pinwell says that the authority has the power to end the DBID.

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He writes: “I would be as bold to say that the council could possibly consider the termination of the current bid arrangements in light of the issues arising out of the Covid lockdown.

“Regulation 18 of the BID regulations provides grounds for termination of bid arrangements if in the opinion of the council the BID body has insufficient finances to meet its obligations for the current bid period.

"In these times many of the businesses will not be able to make their BID levy payments and as such the funding stream of the BID company will be compromised and will not be able to meet their liabilities.

“The regulation allows you to hold a public meeting for those affected by the BID levy to meet and make representations to you.

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“It seems that in these unprecedented times this is the correct way to proceed, to liaise with those most affected and take action on the views that those key stakeholders provide to you as the council.”

Mr Pinwell adds that these are “unprecedented times” and the business community in the borough finds itself in a situation out of its control.

His letter adds: “I am sure you will agree that the businesses are operating in a totally different world will need all the encouragement and assistance they can get in order to get back trading and generate income and stimulate the economy of the borough.

“In these circumstances, the additional burden of a bid levy on these businesses will be most unwelcome and I suggest it would be very difficult to collect in the current circumstances when businesses are struggling to meet their existing outgoings on top of an additional burden of a bid levy.”

The Yorkshire Coast DBID aims to invest approximately a £5 million over five years into projects and initiatives that will develop the Yorkshire Coast into a thriving tourist destination.

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