Members of Westmorland and Furness council cabinet voted unanimously to use the councils ballot as a business rates payer to back the ballot for the Penrith Bid with a Yes vote.
Members of the councils cabinet spoke about the work done by Penrith BiD and others in the district and the important role the BiD had played in Penrith over its original 10 years.
Penrith BiD like all business improvement districts must hold a renewal ballot every 5 years that enables the business levy payers in the BiD area to decide if they wish the BiD to operate for a further 5 year term.
The Penrith business improvement district was originally established in 2013, and ran for a 5 year period until 2017. A renewal ballot took place in November 2017 confirming a second term of 5 years running until 31 March 2023.
The Penrith BiD held a renewal ballot on the 30th November 2022 on the proposal for a third term for the Penrith BID, the proposal was for a five-year term from 2023 to 2028.
For a third term of the BID to be approved legislation requires, two threshold tests be met in the ballot. Firstly more than 50% of votes cast as turnout must be in favour of the BID. Secondly the positive vote must represent more than 50% of the Rateable Value of the votes cast.
The total number of votes cast in the November ballot, excluding rejected ballot papers, was 115, representing a rateable value of £2,642,650. The votes in favour were 89, representing a rateable value of £1,084,850.
A majority of the business ratepayers in the proposed BID area who voted, voted in favour of the proposal, but not by aggregate rateable value. As both of the threshold tests were not met, the proposal for a third term of Penrith BID was not approved.
Following the November renewal ballot failing to allow a third term, the Penrith BiD board decided to go for a fresh ballot that will take place this month an the 28th of June 2023.
Penrith BiD is not currently in operation due to the last approved 5 year term ending on the 31st of March 2023.
A it’s meeting this morning Westmorland and Furness Cabinet were informed that if the June 28th ballot is not successful then the BiD board do not plan to hold any further renewal ballot.
Cabinet members were informed that the need for the rateable value threshold to be passed in the ballot resulted in the larger rateable business in the town holding the balance of the vote result and even if majority of the towns smaller businesses vote Yes. If the larger business rate payers vote No or do not vote at all this could result in the ballot not been approved again on the 28th of June.
Westmorland and Furness Council own 13 properties and land holdings at present in the Penrith BiD area with a rateable value over £4,000 which would be subject to the BID levy with a total rateable value of £423,400.
The council owned properties and rateable value are:
Tourist Information, Middlegate £13,250
Mansion House, Friargate £58,500
Car Park, Sandgate £25,500
Public Conveniences, Little Dockray £5,200
Bus Station, Sandgate £6,500
Town Hall, Corney Square £71,500
Car Park, Princes Street £9,600
Car Park, Bluebell Lane £37,750
Car Park, Drovers Lane £17,500
Voreda House £76,500
Brunswick School £64,000
Penrith Library £32,750
Unit 1, 5 Corney Square £4,850
If the Penrith BID renewal ballot is successful, Westmorland and Furness council will rates liability falling on the Council will pay a levy of £6,351 per annum.
Westmorland and Furness Cabinet members were also told that there is no guarantee that a BID Renewal Ballot will be successful and If there is a ‘no’ vote any remaining funds from the second BID term will be returned to the council who will distribute it back to levy payers under the procedure set out in legislation.
In March this year the Penrith BiD board received a briefing from the British BiD’s organisation that informed the Penrith BiD on the voting position of most of the bigger rateable value businesses and organisations in Penrith based in national voting patterns in BiD ballots.
The Penrith BiD board were informed that Morrisons normally vote No and B&M vote No in BiD ballots. The BiD board were also informed that Royal Mail, Premier Inn and Mountain Warehouse don’t vote in BiD ballots.
Since the November 2022 BiD ballot. Penrith has seen a number of businesses in the town close that will reduce the number of voting businesses in the town for the June 28th ballot.
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