Anger as Stratford BID sends out bills to businesses despite questions over vote result
SHOP owners have reacted angrily after receiving bills from Stratford BID – despite the organisation’s re-election still being investigated.
Although Stratford Business Improvement District appeared to win an election in February to serve another five years, objections were raised.
Rival breakaway faction BAGS (Business Action Groups Stratford) wrote to communities secretary Michael Gove arguing the ballot of town centre businesses was invalid.
As a result, business owners are asking how Stratford BID can demand payment, while its position is still in limbo.
And because Stratford District Council (SDC) sends out bills and collects payments on behalf of the BID, there are also questions over why it hasn’t waited for the secretary of state’s verdict.
BAGS said it has been told by officials at the Department for Levelling Up, Housing and Communities that no decision will be made before the General Election on 4th July.
Mr Gove has already announced he is stepping down permanently as an MP, so whatever the result of the election, there will be a new communities minister with the power to decide if there should be a new vote.
Steve Halford, who’s a member of BAGS and runs dog accessories business Sniff & Bark in Chapel Street, said: “They shouldn’t be sending out bills at this stage. If the new secretary of state is minded to agree with our appeal that the election is void, then they’re sending out bills under false pretences and what’s going to happen to the money?
“If they’re spending that money in the meantime, how are they going to refund it?
“And if they’re not receiving it, because the council is collecting the money on their behalf and it’s being held in a ring-fenced fund, what’s the point in collecting it now?”
Another Stratford businessperson and BID member who asked not to be named, said: “This uncertainty could carry on until December, and in the meantime I’d rather have that money in my bank account. Also, if that revenue is being put into a special account the BID can’t touch, how long can it keep going when it has staff wages, office rent, phone bills and other costs?”
Former BID board member and Stratford mayor Kevin Taylor added: “If you’re running an organisation, you’re in a difficult situation and want to collect money, wouldn’t you consult people first? That would have been an ideal opportunity to have either met, or communicated with, members to say ‘look, this is what we’re considering doing, what’s your feeling?’ But to just send the bills, without any consultation seems a bit naughty and smacks of bad management.”
A BID spokesperson said: “The Department for Levelling Up, Housing and Communities communicated to the BID on 30th May that a decision regarding the ballot will not be reached before the general election on 4th July. In their recent correspondence, the government has assured the BID that they are committed to minimising any delays that may occur after the general election. Furthermore, and significantly, the government emphasised that the outcome of the successful BID ballot remains valid unless declared void by the secretary of state.
“It was clarified that the local authority holds the responsibility to determine whether to issue the 2024 bills and whether to transfer the levy to the BID.
“The BID remains hopeful that the objection raised does not meet the criteria of a ‘significant irregularity’ and is optimistic about the continuation of the BID operations. We eagerly anticipate a swift resolution to this matter, enabling us to move forward with the implementation of the business plan.”
SDC told the Herald: “On 23rd February the result of the ballot was announced. The result of the ballot was that, both in number and rateable value, the majority of those responded voted in favour of the proposed Business Improvement District for Stratford.
“It is only the secretary of state who can overturn this result. Whilst we acknowledge that a challenge to the ballot process has been made, the result of the ballot remains valid unless a decision to the contrary is made by the secretary of state. A decision in relation to the challenge is not expected prior to the general election. A positive vote therefore provides the authority for the levy to be requested from those relevant businesses.”
BAGS claims the vote held for Stratford BID was carried out unlawfully because it was “the wrong type of ballot”. It maintains it was not a ‘renewal vote’ as claimed, since the terms of the election were different from the previous one. The BID had raised the rateable value threshold for voting from £9,500 to £15,000, disqualifying 110 businesses from taking part in the ballot while exempting them from the levy.
The geographical area was also widened to include the Maybird Centre and Morrisons.
According to BAGS most of the disqualified businesses – who were able to vote last time – would have voted against another term.
The BID achieved the backing of 75 businesses from 138 that voted. The levy is worth £1.9m over the five years.
