Agenda item

Cabinet Member: Cabinet Member for Economy & Jobs, Councillor Manju Shahul-Hameed

Officer: Executive Director Place, Shifa Mustafa

Key decision: no

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1.    Note that the Leader delegated authority (5420LR) to the Cabinet Member for Economy & Jobs in consultation with the Cabinet Member for Finance & Resources to:

·         Consider on behalf of the council as a billing authority, whether the Purley BID proposal conflicts with any formally adopted policy of the Council and, if it does, give notice of this in accordance with the BID Regulations

·         Determine and agree that the council should approve the BID proposal and vote ‘yes’ on the BID ballot

·         Determine and agree that the council can determine the baseline service provision for key services within the Purley BID area for 2020/21 on behalf of Cabinet

·         Agree that the Council formally make arrangements for conducting a BID ballot in accordance with the BID regulations through the Council’s electoral services team (with the ballot day scheduled for Thursday 10^th December 2020)

·         Note that in the event of a ‘Yes’ vote atballot:

·         That the Council manage as the relevant local billing authority, the billing and collectionof the additional levy, and its transfer to the BID Company, with all costs incurred by the council to be paid by the the BID Company.

·         That the Council meet the Council’s obligations in paying the extra BID levy, as a non–domestic ratepayer in the BID area, in accordance with the BID regulations over the life of the BID

·         That the Council enter into the key legal agreements with the BID Company regarding the operation of the BID and delivery of Council baselines and that the Executive Director – Place in discussion with the Cabinet Member for Economy and Jobs be given delegated authority to approve the final terms of thoseagreements

2.    Note that the above decisions were taken under delegated authority by the Cabinet Member for Economy & Jobs in consultation with the Cabinet Member for Finance & Resources on 7 October 2020 (5420EJ).

This item was taken as the third substantive item at the meeting.

The Cabinet Member for Economy & Jobs informed Members that the report asked Cabinet to note the decisions which had been taken under delegated authority and under Special Urgency.

Purley BID had been established in 2015 and following its five year term was seeking to continue. It was noted by the Cabinet Member that the BID had worked tirelessly to support businesses in the local area and as such the council would continue to support its work. The ballot was scheduled to take place on 10 December 2020 and work had already begun with ballots having been posted.

Due to the economic impact of COVID-19 it was recognised that the BID was more important than ever in supporting the local economy and to further the council’s understanding of the needs of local businesses the Cabinet Member and Chief Executive of the BID would be undertaking a walk around the Purley BID area in November 2020. The ward councillors of the two Purley wards were welcomed to join the walkabout.

Simon Cripps, Purley BID Chief Executive, was welcomed to the meeting and thanked the council for its support for the BID. Since its inception five years ago, the BID had delivered over 200 projects to support the local area.

One such project had been the Business Rates campaign. It had been noted in 2017 that Purley was heavily impacted by Business Rates, more so than other areas in the region. A campaign was developed and was supported by councillors and the local MP, and in 2018 the Business Rates were reduced.

Recently, the BID had supported local businesses to continue trading by providing PPE, screens, posters, marketing and supporting businesses to apply for grants.

With the renewal of the BID, three themes had been identified:

·     Destination Purley – which sought to promote and support Purley as a vibrant high street;

·     Access and safety – which included solutions to parking access issues experienced due to two A roads crossing through the centre of Purley and purchasing the services of a private security firm; and

·     Business support – which included reducing the levy from 2% to 1.5%.

The BID Chief Executive stated that businesses needed the support of the BID, and whilst it was one of the smallest in the country it was considered to punch above its size.

Members thanked the BID Chief Executive for his work and enthusiasm and it was recognised that the BID had been very important to the area in supporting the local economy.

Concerns were raised by the Shadow Cabinet Member for Economy & Jobs that the council was responsible for enforcing the payment of the BID levy, however enforcement had taken place during the first term which had impacted upon the BID to the extent of £50,000 in lost income. It was further noted by the Shadow Cabinet Member that a collection system had been introduced in 2019 to support the collection of the levy but that no defaults had been issued in that time.

In response, the Cabinet Member stated that the council was responsible for managing the levy and there were approximately 180 properties which were eligible to pay the levy. The council sought to work with the BID and businesses to ensure the levy was paid and remained committed to ensuring the levy was paid. It was further noted that the council was also a levy payer for three properties in the BID area.

BIDs were recognised as having a positive impact on their areas. In Croydon there were three BIDs and there was a desire to support the development of more BIDs to support local businesses.

In response to concerns raised by the Shadow Cabinet Member for Clean Green Croydon that the BID levy should not be used to bolster shortfalls in council spending, the Cabinet Member stated that the financial situation of the council was well known and had been discussed at previous meetings of councillors. However, in the case of the BID the one off cost to the council of £4,000 for the ballot had been identified and the council remained committed to its ongoing levy liability on the three properties in the BID area as it was recognised that the BID was able to attract additional investment to support the area.

Further concerns were raised in relation to agreed baseline services and the responsibility for the costs for these services, such as the Environmental Response Team (ERT), when they were disbanded by the council. It was stated by the Shadow Cabinet Member for Clean Green Croydon that the cost of those services should not be the responsibility of the Purley BID should the council discontinue them. In response, the Cabinet Member for Clean Green Croydon stated the service provided by the ERT would be provided by Veolia at a lower cost than that incurred from having an in house service.

Councillor Brew addressed Cabinet and stated that he was delighted to see the development of the Purley BID over the previous five years, however also raised concerns in relation to the levy which had not been collected by the council and which totalled £50,000, 5% of the BID’s budget. It was further noted that invoices of £13,000 had been raised for the collection service which was felt to be sub-standard.

Members were assured by the Deputy Leader that their concerns in relation to the levy collection were being noted and that the council would continue to support the BID. The BID Chief Executive was thanked for his contributions and his enthusiasm. It was noted that the work of the BID was supporting work to make Purley a better place.

The Statutory Deputy Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1.     Note that the Leader delegated authority (5420LR) to the Cabinet Member for Economy & Jobs in consultation with the Cabinet Member for Finance & Resources to:

                          i.          Consider on behalf of the council as a billing authority, whether the Purley BID proposal conflicts with any formally adopted policy of the Council and, if it does, give notice of this in accordance with the BID Regulations

                         ii.          Determine and agree that the council should approve the BID proposal and vote ‘yes’ on the BID ballot

                        iii.          Determine and agree that the council can determine the baseline service provision for key services within the Purley BID area for 2020/21 on behalf of Cabinet

                       iv.          Agree that the Council formally make arrangements for conducting a BID ballot in accordance with the BID regulations through the Council’s electoral services team (with the ballot day scheduled for Thursday 10^th December 2020)

                        v.          Note that in the event of a ‘Yes’ vote atballot:

·       That the Council manage as the relevant local billing authority, the billing and collectionof the additional levy, and its transfer to the BID Company, with all costs incurred by the council to be paid by the BID Company.

·       That the Council meet the Council’s obligations in paying the extra BID levy, as a non–domestic ratepayer in the BID area, in accordance with the BID regulations over the life of the BID

·       That the Council enter into the key legal agreements with the BID Company regarding the operation of the BID and delivery of Council baselines and that the Executive Director – Place in discussion with the Cabinet Member for Economy and Jobs be given delegated authority to approve the final terms of thoseagreements

2.     Note that the above decisions were taken under delegated authority by the Cabinet Member for Economy & Jobs in consultation with the Cabinet Member for Finance & Resources on 7 October 2020 (5420EJ).