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BUSINESS IMPROVEMENT DISTRICTS WORKING GROUP PAPER 04/06
MEETING: 17 AUGUST 2004, CONFERENCE ROOM 5, VICTORIA QUAY

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Chair:
Andrew Rushworth, Scottish Executive: Finance and Central Services Department

Members:
Euan Dobson, Scottish Enterprise (SEnt)
Geoff Huggins, Scottish Executive: Development Department Ken Jobling, Scottish Executive: Development Department
David Lonsdale, Scottish Chambers of Commerce (SCC)
Jane Morgan, Scottish Executive: Enterprise, Transport and Lifelong Learning Department
Fiona Moriarty, Scottish Retail Consortium (SRC)
Robert Nicol, COSLA
Gordon Reid, Association of Town Centre Management (ATCM)
Alf Strange, The British Property Federation (BPF)

Secretariat:
Billy McKenzie, Scottish Executive: Finance and Central Services Department
Anna Gilbert, Scottish Executive: Finance and Central Services Department

1. Apologies and membership (Paper 04/02)

1.1 Apologies had been received from James Thomson (COSLA), Bill Anderson (Forum of Private Business in Scotland), Niall Stuart (Federation of Small Businesses), and Jane Scott (Boots Group).

1.2 Andrew Rushworth suggested that COSLA increase the number of local authority representatives at future meetings so as a wider range of experience could be represented on the Working Group. Robert Nicol agreed to take this back to COSLA.

2. Agenda Item 2: Scoping Paper 04-03

2.1 Andrew Rushworth asked for comments on the remit of the scoping paper. There were no substantive comments and it was agreed that the remit covered the issues that needed to be addressed by the Group.

2.2 Jane Morgan asked however for clarification on the phrase "rural areas". Andrew Rushworth noted that it would be for the Working Group how it wished to interpret "rural area". To assist with this it was agreed that Secretariat would provide the transcript of the Local Government Committee report which recommended BIDs is looked at in relation to rural areas, so that members are clear as to how this proposal emerged.

2.3 Euan Dobson asked for clarification on whether the Group is tasked with identifying where pilots should be located, or simply whether pilots are required. Andrew Rushworth suggested that the Group should initially come to a view as to the necessity of pilot schemes in Scotland. Following that further work can be progressed if necessary regarding the location and context for any pilots.

2.4 Andrew Rushworth turned to the issue of how the Working Group would operate within the timescale of 7 months in which its proposals were to be submitted to Ministers. It was agreed that the Working Group meetings would be held roughly every 2 months and that Secretariat would arrange these now to avoid clashes with other commitments.

2.5 On wider consultation Andrew Rushworth asked if any other groups should be targeted for their views. Gordon Reid recommended inviting Jacquie Reilly, ATCM England and BID Pilots Project Manager, to a future meeting to relate her experience of BIDs in England and Wales. It was agreed that this would be worth pursuing. Fiona Moriarty suggested that RICS should be involved and it was agreed to keep them informed of the work of the Group and invite them to a future meeting if their expertise was required. Fiona Moriarty would also keep the CBI in touch with the Group's work. Alf Strange suggested the Scottish equivalent of English regional development agencies. However it was agreed that the local Enterprise Companies were adequately represented through Scottish Enterprise and that Euan Dobson would keep them and HIE informed of developments.

3. Agenda Item 3: Key Issues

3.1 The formal involvement of landlords

3.1.1 Andrew Rushworth noted that it was clear from the BIDs consultation responses that many respondents were in favour of mandatory involvement of landlords/property owners. Alf Strange commented that one of the obstacles to mandatory involvement lies with identifying landlords as many properties have several layers of tenancy between the landlord and the rateable occupier. There is also a problem in billing and collecting the money from landlords as there is no system set up at present to do this. Alf Strange observed that there are many landlords who are supportive of BIDs and will happily contribute towards their success, as on a long-term basis landlords could see significant benefits i.e. increased occupancy rates. It was noted that it may not be possible to have mandatory involvement of landlords and that the Group should not allow the issue to become a showstopper for the initiative. However the Group agreed that it should explore the subject thoroughly before reaching any conclusions on this important issue.

3.1.2 The review by ODPM on the involvement of landlords was raised and it was agreed that information on the review should be sought from ODPM, as well as any research papers that have already been compiled.

3.1.3 In summary the Group were keen that landlords are actively encouraged to participate in BID projects, whether by mandatory involvement or voluntary. However it was clear that there are several obstacles to this and that further research needed to be undertaken on the legal position in Scotland in relation to ownership. It was agreed that Secretariat would liaise with Estates colleagues and Solicitors within the Scottish Executive to obtain further advice on this issue.

3.2 BID pilots in Scotland

3.2.1 Gordon Reid suggested that the use of the phrase "pilot project" was misleading and it was agreed that "Pathfinder" might be used instead. The question here was whether a genuine pilot project should be set up, or should Scotland follow England and Wales by targeting preparations for the introduction of BIDs in specific areas where there already is some enthusiasm, without actually conducting a formal pilot project as such.

3.2.2 Gordon Reid also reported that there is a current BID project taking place in the Exchange District of Edinburgh. The project has taken 2 years to encourage businesses in the district to come together to fund improvements in order to promote a "clean and safe" area. The project was initially funded (in 2001) by the City of Edinburgh Council, and after negotiations with the proprietors in the district it is now funded by the private sector.

3.2.3 Euan Dobson suggested that different pathfinder projects should be set up to reflect each of the different contexts a BID could operate under (i.e. a small town BID, a large city BID, a BID in a declining area, one in a successful area, and a rural BID). This would give those who are interested in a BID to point to specific examples to help back their case. It was agreed that Euan Dobson would produce a paper which will address this proposal for the next meeting.

3.2.4 Jane Morgan mentioned that BIDs could contribute towards key areas for regeneration, albeit on a small-scale.

3.2.5 Alf Strange emphasised that the best way to start BIDs was for them to be identifiably local and relatively small-scale, with the additional income being clearly ring-fenced and there being visible benefits to the business community in question.

3.2.6 Andrew Rushworth suggested that more information would have to be gathered on how England went about establishing the pilot projects. It was agreed that Secretariat would contact Jacquie Reilly to request information on how the BID pilots in England and Wales where set up, why each area was chosen, and specific information relating to the size and aims of each pilot. Alf Strange offered to provide existing English documentation also.

3.3 BIDS guidance document

3.3.1 Andrew Rushworth referred to the guidance produced by ODPM for BIDs and asked if anyone had any comments on it. Gordon Reid noted that a lot of work had been done in England to produce this document and that it would be worthwhile using it as a basis for drafting. Euan Dobson pointed out that the provision of baseline services needed to be addressed more comprehensively in the Scottish version as it was an area where disagreement could occur between local authorities and business.

3.3.2 A discussion took place regarding the different forms of urban regeneration schemes and ensuring guidance was available so that BID projects did not clash with other development work which was underway. It was agreed that Geoff Huggins would provide an initial brief guide which would set out current work in relation to urban regeneration/renewal.

3.4 BIDS in rural areas

3.4.1 Billy McKenzie noted that it had been suggested by a local authority that a BID could be set within an entire rural local authority in order to promote tourism. This would address the problem of low business presence within rural areas. Gordon Reid expressed reservations as it is vital that a BID is seen to be business led, rather than by a local authority. Where a local authority is seen to want to promote something it may well be perceived as an additional taxation by business, especially if applied throughout the local authority area

3.4.2 David Lonsdale suggested that there may be a market for rural BIDs on the outskirts of Scotland's National Parks. Geoff Huggins observed that if a BID is spread over a large area, small communities may not see any benefit to them as they will not see where the money goes. Alf Strange pointed out that the whole point of a BID is that it is a specific project and that the money is ring fenced and spent specifically on BID ideas, and led by business.

3.4.3 It was agreed that COSLA would seek a paper from a rural authority on how BIDs could be taken forward in a sparsely populated area, and that this paper would be brought to the next meeting.

4. Agenda Item 4: Any other business

4.1 There was no other business.

5. Agenda Item 5: Date of next meeting

5.1 It was agreed that Secretariat will take forward arrangements for the Group to meet up to March 2005. The first of the meetings will take place the first week in October.

Summary of action points for next meeting of Group:

Secretariat to liaise with Estates colleagues and Solicitors within the Scottish Executive to obtain further advice on the involvement of landlords.

Secretariat to provide the relevant section from the transcript of the Local Government Committee report which mentioned the use of BIDs in rural areas

Secretariat to contact Jacquie Reilly, ATCM England and BID Pilots Project Manager, to invite her to a future meeting so that members can be updated on the pilot schemes in England and Wales.

Secretariat to contact ODPM to obtain information on the review into the involvement of landlords, as well as any research papers that have already been compiled

Secretariat to arrange meetings of the Group through to March 2005

Euan Dobson to produce a paper setting out the different contexts a BID pathfinder project could operate under.

Geoff Huggins to provide an initial brief guide to set out what work is currently underway in relation to urban regeneration/renewal.

Alf Strange to provide documentation on BIDs from the British Property Federation.

COSLA to provide a paper on how BIDs could be taken forward in a sparsely populated area.

COSLA to suggest two more local authority representatives for the Working Group.

Scottish Executive
August 2004