COLCHESTER town centre businesses have begun a month-long vote on whether they want a Business Improvement District (Bid) in Colchester town centre.

A Bid is an area in which businesses pay a levy on top of their business rates - 1.85 per cent - used to fund projects to improve the town centre.

About 674 businesses will get to vote as they have premises with a rateable value of more than £10,000. They will also pay the levy.

Another 499 will not vote because they fall under this threshold and they will not pay the levy.

More than half of eligible businesses must vote yes for a Bid to be established.

Here, Bid manager Chris Kirvan and Colchester Retail Association chairman Simon Taylor make the case for and against a Colchester Bid based on four points - the Bid concept, levy, projects and rateable value threshold.

FOR A BID
Chris Kirvan, Bid manager

Bid concept
A Bid is an exciting opportunity for businesses to improve by taking control of a local budget and the projects it will buy.

There are now over 55 established Bids, including Ipswich, Great Yarmouth and Bedford. Bedford Bid's first Annual Report shows shoptheft down by 25 per cent, footfall up by five per cent and Christmas trading up by three per cent - see what a difference a Bid could make to Colchester.

Bid levy
The Colchester Bid levy has resulted from costing out the projects which are required to make a real difference, it is proposed at 1.85 per cent of business ratable value. Nationally Bid levy rates vary from 0.5 to four per cent. Colchester businesses have said they want to generate enough money to make significant improvements.

The levy collected will be totally ring-fenced and will be spent by a new Bid company, all Directors will be businesses based in the Bid area 74 per cent of businesses will pay less than £1.27 per day and many will pay much less. £4million will be raised to spend on direct benefits for the town over the next five years.

Bid projects
All Colchester Bid projects will provide additional benefits. Colchester Council and Police will guarantee what they do now, the Bid will provide extra police, extra cleaning, extra promotion and a more attractive environment. Look at the Bid Proposal and DVD for more details on www.colchesterbid.co.uk Rateable value threshold
Small businesses with a rateable value of less than £10,000 will not have to pay the levy, but they will still benefit from the projects, and have a seat on the Bid Board. From existing town centre Bids, 61% have agreed a levy threshold.

More information from the Colchester BID Office 01206 760000, e-mail chris@colchestertp.co.uk visit colchesterbid.co.uk. For other Bid information visit ukbids.org

AGAINST A BID
Simon Taylor, chairman, Colchester Retail Association (CRA)

The Bid concept
The CRA began looking at Bids with an open mind and the belief that the concept is, basically, a good one, but the more research we did the more worried we became. Finally we had to admit that we could find no convincing evidence that comparable Bids have delivered on their promises of increasing total footfall or customer spending.

Bid levy
Many Bids manage to secure commitments for significant inward investment through voluntary contributions from local councils and other stakeholders which reduces the cost to businesses. The real reason why the Colchester Bid would have to charge businesses over 80 per cent more than most town centre Bids is its failure to get this vital extra support.

Bid projects
The Colchester BID proposal booklet lists over 20 separate projects, plus 8 to "work towards", which appear to be aimed at offering something to everyone in order to gain their vote. These are repeated in the Business Plan which not only fails to reveal any detailed costs but also adds the disturbing comment that it will not be finalised until after the BID vote.

Rateable value threshold
We reject the proposer's excuse that small businesses include a high proportion of bad business ratepayers, increasing the levy collection cost, and maintain that any scheme should be fully inclusive. The promise of a non-levy paying board member is no substitute for true accountability. Not only does this disenfranchise many independent shops, but it places an unfair burden on those above the cut off who would see no more benefits than their non-paying neighbours.

More information from shopincolchester.com/bid