Issue - meetings
Herefordshire County Business Improvement District Advance Request
Meeting: 26/05/2022 - Cabinet (Item 121)
To seek approval for an advance loan of up to £210,000 in 2022/23 to the Herefordshire County Business Improvement District (BID) Limited to enable the company to become operational until such time as the council (as the billing authority) can commence collection of the 2% business rates levy.
The cabinet member environment and economy introduced the report. She explained that the new Herefordshire County BID had requested a loan for the first year of its operation, to be repaid as the levy was collected from businesses. This would support set up costs and the initial marketing activity to promote tourism in the county. A similar facility had been put in place for the Hereford City BID when it was first set up. As the council was the billing authority it would be responsible for collecting the levy and would deduct the repayments from the funds collected. There was no financial risk to the council as nationwide figures show only a very small percentage of businesses fail to pay and the loan would be recouped in less than a year.
Group leaders and representatives gave their comments. The reasons for the loan were understood and the assurances given on the expected repayment were acknowledged and accepted.
It was resolved:
a) To approve a short term 0% loan of up to £210,000 in 2022/23 to the Herefordshire County BID Limited, to be paid on commencement of the Operating Agreement and repaid within the financial year through collection of the levy by the council as the billing authority; and
b) To delegate to the Section 151 Officer following consultation with the cabinet member environment and economy all operational decisions in relation to the payment and recovery of the loan.