Business / Concern at increase in Living Lerwick levy but businesses can vote against continuation of BID
“IT’S very simple – if the businesses don’t want it, they can vote it out.”
That was the message from Living Lerwick chairman Steve Mathieson at a meeting of the town’s community council on Tuesday ahead of a vote later this year on whether to continue the business improvement district (BID).
It came after community councillor Amanda Hawick expressed concern about a proposed 20 per cent uplift in levy fees.
She said this would hit small businesses hard in an increasingly difficult financial climate, adding that the street is “so fragile” already.
But Mathieson said rates had not increased in the last 14 years and that come August businesses can vote against the town centre continuing as a BID – if that is what the majority wants.
However, a survey of businesses has indicated that around 70 per cent would support the BID continuing.
The vote will take place in the form of a ballot of Living Lerwick members, and if more than 50 per cent show support it would mean the BID carries on for another term.
Living Lerwick, which has overseen the BID since its first term started more than a decade ago, aims to “create a more vibrant, viable and sustainable town centre”.
Since 2013 there have been a few ballots held, with the BID continuing each time.
Businesses have to pay a compulsory levy based on the rateable value of their property, and at the moment it varies between £200 and £850 a year. Mathieson said there are more than 140 eligible properties.
Living Lerwick tends to receive around £70,000 a year in levies, while also bringing in some external funding too.
In return it carries out a number of activities including Christmas lights and a parade, flowers, bunting, the Spend at Da Street loyalty scheme, marketing and other events.
Its business plan for 2021-26 says that “for as little as £0.55p per day, a BID can work on your behalf to deliver projects, activities and support to help our town centre thrive and make it a better place to live, work and do business”.
Lerwick Community Council was asked if it would write a letter of support ahead of the ballot which would be included in a BID proposal to the Scottish Government and Shetland Islands Council.
However Hawick raised concern about the financial impact it is having on small businesses, especially with fees going up.
She said they are already being hit hard with the cost of energy as well as, in some cases, other costs like accommodation licences.
Hawick said she was at a hairdresser who said they were in “despair” at the proposed increased BID levy.
“If you’re going to increase the rates when folk are already struggling, it’s hardly encouraging people to come on the street,” she said.
But Mathieson said Living Lerwick has to rely on listening to the businesses directly rather than hearing second-hand.
He added: “Businesses can vote it out – it’s a democratic vote.”
Mathieson also said there has been a lot of “misinformation” on social media, and he highlighted that directors of Living Lerwick are volunteers.
“All we get out of it is giving up our time,” he said.
“There’s nothing in it for us other than we see the value of it. But if people don’t see the value of it, they can vote it out.”
Mathieson also said in order to keep the minimum service provided by Living Lerwick, the levy needs to go up.
Hawick, who is the chair of the Shetland Tourism Association, highlighted how the tourist office will be levied more than £1,000 “once we open the doors in a couple of weeks”.
Community councillor Karen Fraser said she knew it was difficult for businesses at the moment, but “on the other hand it would be difficult, and perhaps even more difficult, without the BID” because it helps to bring people to the street.
Chairman Jim Anderson also said he felt Living Lerwick has had a positive impact on the town centre.
After a vote the decision was made to write the letter saying the community council was generally supportive, while noting some of the concerns raised.
Members also approved a grant application from Living Lerwick worth £1,000 which will go towards its summer planting and bunting scheme.
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