SIC to vote in favour of Living Lerwick renewal
The council owns six properties in the business improvement district area
SHETLAND Islands Council is to vote in favour of the Lerwick business improvement district (BID) being renewed for another five years.
The council has a vote in the ballot as it owns six properties within the BID area which would be liable for levy payment.
At a meeting this morning (Thursday) councillors decided against exercising a right to veto and instructed officers to vote in favour of renewal.
Living Lerwick operates the BID in an attempt to “create a more vibrant, viable and sustainable town centre”.
Businesses within the BID pay a compulsory levy based on the rateable value of their property.
Concern has been shown at a planned 20 per cent uplift in the levy, which would increase annual rates to between £240 and £1,020.
However, Living Lerwick bosses said the levy has not increased in the last 14 years.
A business plan for the next term, from 2026-31, says it has been agreed by the BID board that there will be no increase or decrease in the levy over the next five years.
This is because of a non-domestic rateable revaluation occurring during the BID term.
Having started in Lerwick in 2012, the BID comes up for renewal every five years, with businesses given a vote. Ballot papers for the upcoming vote on a fourth term need to be returned by 20 August.
The upcoming term comes with a revised BID boundary, which will reduce the number of eligible properties from around 150 to approximately 115.
In return for the levy payments Living Lerwick carries out a number of activities during the year including Christmas lights and a parade, flowers, bunting, the Spend at da Street loyalty scheme, marketing and other events.
A report to elected members highlighted that the total BID levy the SIC stands to pay is £4,200 a year. Among its six properties in the BID is Lerwick Town Hall.
The council has previously provided grant funding of £5,000 to Living Lerwick Ltd towards management costs, and an application to continue funding at a similar level for the period 2026-31 will be reviewed by officers.
The council also has a statutory obligation to manage the levy collection either itself or through a third party.
At Thursday’s meeting councillors spoke out in favour of the BID continuing, with Shetland Central member Catherine Hughson saying Living Lerwick’s work has made the town centre a “really nice, welcoming place to come into”.
Her ward colleague Moraig Lyall also said in her view Living Lerwick provides things that people in the community would miss if they stopped, such as Christmas events and flower planters.
Davie Sandson, also representing Shetland Central, said he finds the street “pretty attractive” compared to some other town centres in rest of Scotland.
He added that despite some negativity now and again, “there’s a lot going for it”.
Earlier in the meeting councillors were told that there are some instances of property owners not paying the BID levy, or submitting it late.
Finance manager Paul Fraser said for example that in 2025 around £15,000 was received which related to between 2021 and 2024.
Meanwhile Sandison questioned if there had been any discussions about extending the BID area to the entire of Lerwick, so there is “equality” for all.
Lerwick South councillor Dennis Leask said he used to own two businesses on Commercial Street, and added that the benefits of the BID tend to be centred there.
He suggested that, if extended across Lerwick, some businesses outwith the street would say they are not receiving the full benefits.
Leask said he also wanted “debunk” some theories that the SIC holds a lot of sway in the ballot – whereas in reality the council only owns a small number of properties in the BID area.
Meanwhile in a comment that convener Bryan Peterson described as verging into “Dragons’ Den” territory, Lyall suggested Living Lerwick could create an app with a list of every business in the BID.
She also said it would be beneficial to have a “wallet” within the app containing not only Living Lerwick’s Spend at da Street card but also loyalty cards from individual businesses.
Lyall added that Living Lerwick could seek to use the services of local firms involved in app building.
Lerwick South member Neil Pearson also raised concerns around parking in the town centre, questioning if the SIC is able to influence the priorities in the BID business plan.
Coutts said the business plan is a matter for the BID board, however he said he knew parking was a regular discussion topic among those involved in Living Lerwick.
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