The private company developing Knaresborough Business Improvement District (BID) has gone ‘cap in hand’ to Harrogate Borough Council requesting £27,000, to pay for Advisory Consultants and running a ballot in the hope of establishing a BID.

The Council without question duly granted this money as a loan, it will be paid back if the BID ballot is successful and the BID established, otherwise lost, hence the bet.

For the Council Cabinet meeting on 3rd February 2021 see the meeting documents, and in particular the Council report.

So from reading the Council report what have we learnt:

The Council have granted £27,000 of public money, with little (or rather NO) evidence from the 2 blokes driving the BID process that there is strong support for establishing a BID in Knaresborough. So the Council seems to be taking the word of these 2 blokes, is that how a decision on this amount of public spend should be made?
Yes it’s a loan so the Council might get it’s money back, but equally it won’t if it’s a NO vote. That’s why the Council classifys it as an ‘at-risk’ loan, so bit of a gamble eh? Particularly with no business case or supporting evidence there’s a good chance it could be repaid.
As it’s a loan, IF the BID gets voted in then the levy payers have got to pay this back out of their newly created pot of money, which at c£150,000 / annum, that’s 20% of the first years fund gone straight away.
There’s already evidence that the Council really wants the businesses of Knaresborough to fund a BID, because as with other BIDs it reduces financial demands on the Council whilst helping with its’ economic aims - all at the expense of the businesses paying the BID tax! The following council statements couldn’t make it clearer could they?

“Support for the Knaresborough BID could help the Council achieve organisational aims associated with the Economic Growth Strategy and public realm improvements to Knaresborough town centre and surrounding area.

Not supporting the Knaresborough BID could mean the Council misses wider opportunities in improving Knaresborough town centre and surrounding area, as well as not achieving aims set out in the Economic Growth Strategy.”

— Harrogate Borough Council, 3rd February 2021

So businesses of Knaresborough, don’t believe the BID has nothing to do with the Council, at least you can see for yourself the Councils’ motives to help force in the BID tax on Knaresborough businesses!

This has played out in Harrogate with 4 Directors resigning from Harrogate BID in 2020 because of strong Council influence. The Directors could see for themselves that despite ballot and business plan promises by the BID proposers, the BID is not a business led partnership and they lost confidence that the Board is spending its money in ways which benefit businesses.

Be careful what you’re getting into Knaresborough, make sure you understand the reality of having a BID before you vote!

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Harrogate Borough Council places a wild £27,000 bet with public money.