Local businesses are to be asked if they would pay a levy in exchange for up to an estimated £600,000 of improvements to the high street.
Brentwood Borough Council is looking to ask businesses in the area if they want to create a Business Improvement District (BID), incorporating the Brentwood, Shenfield and Ingatestone high streets.
A BID is an area in which a levy is charged on all business rate payers, in addition to the business rates bill.
This levy is then used to develop projects which hope to benefit those businesses within the BID.
Early indications suggest there is support for a BID proposal, which must set out who is liable for the levy, the amount to be collected and how it is calculated.
While yet to be determined, it is likely the rate would range between 1.5 per cent and 2 per cent of the business’s rateable value.
This means the potential levy income could be between £400,000 and £600,000 a year.
The council says it will now spend around £20,000 on further engagement with businesses to help define the exact benefits of any BID, levy rules such as thresholds and rates, and an estimated turnout and support for any BID proposal.
Chris Hossack, leader of Brentwood Borough Council, told the policy, resources and economic development committee on September 14: “It is an exciting opportunity, but again another thing we have to bear in mind as we talk about going out to consultation is the business community are hard-pushed, and part of the mechanism of this is to implement a levy.
“And that is the chicken and egg situation. If we improve our district and the businesses in those districts, will that assist economically and therefore is it worth the cost of a levy?
“But ultimately, that is for the business community to decide once the case is made.”
Supporters of BIDs say they create significant sums of investment and strong governance structures that help businesses make decisions about improvements in their area, which helps to attract external funding in addition to the cash raised through the BID levy.
The likely earliest start date for the formation of a Brentwood BID is October 1, 2023.
There are currently more than 300 BIDs across the country, including in nearby Chelmsford, Southend, Colchester and Romford.
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