Business district spurned

Plans for a business improvement district in Newark should be abandoned, according to the town council.

The council’s finance and policy committee agreed not to support moving to the second stage of the process.

Members noted a report by Mosaic Consulting, of Radcliffe, and said they did not wish to have a more detailed briefing on the initiative.

They also agreed not to offer support, in cash or kind, to Newark Town Partnership, which is considering the idea.

If it went ahead, Newark could raise more than £350,000 a year for five years by becoming a business improvement district, according to Mosaic’s report.

Mosaic Consulting was commissioned by the town partnership, through the East Midlands Development Agency, to investigate setting up an improvement district.

The status would enable businesses in a designated area to vote on whether to pay higher business rates, of between 1-2%. If most voted in favour all within the area must pay.

The extra money would be spent on improvements in the area instead of being given to the government.

Mr Max Cope said 114 invitations were issued to a workshop in March but representatives from only 14 businesses attended.

He questioned how the report could say there was a will among the business community to take it forward.

Mr Peter Foster said he attended the meeting with an open mind but most of those to whom he spoke were absolutely against it.

He said: “You could end up with the minority forcing the majority to fork out money.”

The cost of staff, office, administration, marketing, communication, legal, financial and consultancy support to set up a district was estimated to be about £80,000 over a year.

Mr John Clark said people throughout the district would pay for it through higher council tax.

He said there would be little benefit for people who did not live in Newark.

Mr Tony Roberts said offices would pay the most.

He could not imagine any school heads who would want to pay even 1% of their budget for something that would have no direct benefit to pupils.