Agenda item

(Cabinet Member with Special Responsibility Councillor Hanson)

Report of Chief Officer (Resources)

(Cabinet Member with Special Responsibility Councillor Hanson)

Cabinet received a report from the Chief Officer (Regeneration & Planning) to consider the proposal for reinstatement of Morecambe BID feasibility funding on the basis of a proposal from Lancaster District Chamber.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

There is a clear way forward for investigating the feasibility and progression of a Morecambe BID.  The Lancaster District Chamber have confirmed that £40K resources agreed for the Lancaster BID are sufficient for the purposes of BID Proposal development.  This follows the experience of successfully progressing the Lancaster BID through both proposal and implementation stages.  The preferred option is therefore Option 2 – to reinstate the £40K feasibility study budget and award via funding agreement to Lancaster District Chamber.    Members should be aware that the £40K is not currently included in the council’s agreed budget framework (refer to Financial Implications).     

Should Members be minded to approve the recommendation it is intended to make the £40K allocation subject to a formal funding agreement administered by the Regeneration and Planning Service in line with processes used for Lancaster BID.  This will ensure payments are staged according to the achievement of key activities/milestones, made in arrears and the BID proposer adopts governance arrangements and formal reporting systems consistent with the level of funding. 

Enabling and assisting with the BID Proposal and post ballot BID body arrangements will require significant input from the city council over and above the feasibility cash resource.  The duties and potential resource issues are discussed in more detail in Legal and Financial Implications sections.  BID legislation allows for administrative costs to be absorbed in the BID levy. This must be discussed and negotiated with the BID proposer so that any charges are appropriate, commensurate with the task, and clear to those who will vote.

To date BID support work has been undertaken by officers within Regeneration & Policy team with assistance from other departments, particularly Revenues Section.  A Regeneration & Policy officer will continue to lead and be the initial point of contact for BID development with the Lancaster District Chamber but cross-departmental work is needed over the next year which may have resource/business implications.  An officer working group has been convened to support BIDs and manage and review implications arising from BID Proposal development and post ballot arrangements in.  Any major resource implications which cannot be absorbed within existing budgets/resource will be referred to Members.

An immediate issue is the Morecambe BID proposed ballot date of March 2016. The timescale is in line with national BIDs best-practice and has also been prudently chosen to avoid a clash with the Lancaster BID renewal campaign which will end in a ballot around November 2015.  However, should the Morecambe vote be successful, with regard to Revenues Service required lead in times for levy billing the following scenarios emerge:

a)     Morecambe levy billing is undertaken to the council’s preferred standard rates billing run at the beginning of the financial year, which means implementation in April 2017 at the earliest.

b)     The first round Morecambe levy billing is undertaken part way through the 2016/17 financial year.  Future years would be billed to the standard rates billing timetable. 

Clearly the loss of the best part of a year for billing purposes as envisaged in scenario (a) is detrimental to the momentum of the Morecambe BID, although there could be some slippage in the project as it progresses, which would lessen any impact. However, while (b) is preferred by the Chamber, certainly there are implications for Revenues staffing and workload, which in turn could impact on the BID through higher administration charges in the first year.  This scenario would need to be managed (refer to Financial Implications).     

Members should also be aware there is no automatic exemption from the BID levy for local authorities.  The city council will be liable for the levy on the rateable property it occupies/holds should a ballot be successful (refer to Financial Implications).  As a potential levy payer the council is also eligible to vote in a ballot.  It will be up to Members to decide how the council’s active participation in the ballot may be viewed in the light of the ongoing consultation and development of the BID proposals.  The ‘weight’ of the council’s property holding, both in terms of outright rateable value and number of hereditaments, could be significant in the ballot outcome.

It is generally accepted that BIDs create an effective opportunity for local businesses to have a voice and direct impact on subjects relating to the environment and circumstances in which they trade. Development of BIDs has been proven to help build business confidence, performance and encourage local economic growth. In the current economic climate, the City Council’s ability to directly stimulate the visitor economy is limited although it can encourage investment through appropriate use of its regulatory functions e.g. property improvements through the Section 215 scheme. This means that it is increasingly important that the Town’s businesses take the initiative in improving the trading environment.

This report has reminded Members of the BID concept and highlighted potential implications for the city council in supporting a Morecambe BID feasibility stage as proposed by The Chamber.  Officers have a close working relationship with the staff and Board of The Chamber and a clear way forward has emerged.  Members are invited to support the feasibility stage with £40K funding and nominate a cabinet member to represent the city council on the Morecambe BID Steering Group.  

Councillor Hanson proposed, seconded by Councillor Leytham:

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)            That Cabinet supports the intention of Lancaster District Chamber to lead on BID feasibility and BID Proposal development for Morecambe.

(2)            That Cabinet approves the reinstatement of a £40K budget, to be funded from corporate savings achieved to date, to be allocated to the Lancaster District Chamber via a funding agreement.

(3)            That the Morecambe Area Action Plan (MAAP) Implementation Reserve is updated to include the £40K reinstated budget for the purpose of supporting the Morecambe BID and that delegated authority be given to the Chief Officer (Resources) to update the MAAP Reserve and General Fund Revenue Budget once profiling of expenditure is known between financial years.    

(4)            That Councillor Bryning be appointed to the Morecambe BID Steering Group.   

Note: Councillor Barry returned to the room after Cabinet voted on this item.

Officers responsible for effecting the decision:

Chief Officer (Regeneration & Planning)

Chief Officer (Resources)

Reasons for making the decision:

In supporting progression towards a Business Improvement District for Morecambe the Council will be contributing to achieving and/or potentially impacting on a number of its Corporate Plan and Priorities for 2014/15 including Our Vision, Sustainable Economic Growth, Community Leadership and Clean, Green and Safe Places.