28 March 2003
Plans to bring US-style regeneration to Britain's city centres could be undermined by a row over funding.
From April 2004, Business Improvement Districts (Bids), credited with turning around the fortunes of urban no-go areas in the US, will be launched in the UK.
They work by placing an agreed extra levy on a willing private sector who vote for the new tax to improve local surroundings, including improvements such as street cleaning and crime reduction.
But fears are rising that legislation paving the way for their introduction – part of the Local Government Bill passing through Parliament – could lead to Bids being ineffective.
Supporters are furiously lobbying MPs and Lords for property owners to be taxed. At present British Bids will only tax tenants, as there are fears that finding the correct property owner to tax will prove too complex and costly.
But Bid backers say that without extending the scheme to property owners, their benefits will be watered down. They argue if it is just aimed at occupiers, not owners, there will not be enough long-term interest to pay the new levy.
'The government does not believe such a system can be designed, given the different tax structures in the UK,' said Ian Fletcher, director of commercial and residential policy at the British Property Federation. 'We are thwarted at the moment.'
Already supporters have tried, without success, to amend Bid policy in the House of Commons. Now they are looking for a member of the Lords to try to force through the changes. Up to 20 Bids are ready to spring into action in the UK, once they become law.
PFmar2003
