Business Rate Supplements Bill

The hon. Gentleman raises a pertinent point. I am going to address that in detail later in my speech, so if he will bear with me, I will come back to the point, which is relevant and has exercised people. I should stress at this stage that it was not so much a problem of certainty that deterred us from introducing a property owners levy as a basis for BIDs when BIDs were introduced. The obstacle was the cost and time involved in creating a register throughout the country, which would have been necessary, when there was no certainty that BIDs would receive positive votes anywhere. There could have been a lot of abortive cost. Now we are in a different situation, as I will explain. The Government took the decision, and I do not in any way resile from it, in 2002-03 to proceed with the BIDs on the basis of an occupier levy that could be easily and quickly implemented on the basis of the existing business rates register. At the same time we encouraged the concept of voluntary contributions from property owners to supplement the levy on occupiers, so as to spread the burden and ensure that owners had an involvement and were not excluded from the BID. That has worked reasonably well in a number of BID areas, but not everywhere. It has worked to a considerable degree in key retail locations such as London's West End, in the area including Regent street, Oxford street and Bond street, which has a BID: the New West End Company, which has been very successful. It has an annual BID levy income of £2.5 million from property occupiers, but it receives an additional £900,000 a year in voluntary contributions from property owners, so the contributions from owners represent about 36 per cent. of the levy income.