Chairman and directors resign over council influence and secrecy on BID board
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Last updated Apr 30, 2020
Cambridge Street in Harrogate

The chairman of Harrogate BID and three of its directors have sent a stinging letter of resignation to the board.

Citing undue council influence, a lack of openness and a business plan that does not reflect the reality of the state of the town centre, the four – more than a quarter of the board’s 15 members – have stepped down with immediate effect.

The letter highlights the desperate situation which chairman Bob Kennedy and directors Chris Bentley, Robert Ogden and Rob Spencer believe Harrogate is now facing. It refers to an accumulation of negative impacts from the UCI Road World Championships and the Covid-19 lockdown, as well as a more general crisis for retail.

It says:

“Without a consensus view on the board of the dire state of the town’s economy, particularly its retail heart, and its causes, addressing the key issues cannot be achieved.

“The strong influence of Borough and County Council on the board of an organisation that according to government guidance is supposed to be a ‘business-led’ partnership means that any initiative that addresses the councils’ input is endlessly debated, and sensible options resisted. It has not even been possible to garner cross-board agreement that the current aesthetic state of Harrogate town centre is not adequate, something that is self-evident to business leaders and residents alike but is constantly denied or excused by councils.”

Chairman Bob Kennedy is among four directors to have resigned from Harrogate BID

The letter then says the original business plan created by the BID will waste money on some areas and fail to fund others adequately. The plan should have been re-written and the budgets re-allocated to reflect the changing challenges of the last 18 months, according to the four signatories.

They also cite a lack of openness in the way the BID is being run:

“From the start, Harrogate BID was set up not to operate in the open or transparent way it should, with addended confidentiality provisions for directors that other BIDs, for instance York’s, do not have and which we are informed are incompatible with it performing a public function. Recent events reinforce this view, and BID is currently pursuing an approach that appears to be more about suppressing criticism and spinning positive messaging than acknowledging the hard realities of the situation.”

Strong council influence

Finally, the directors say they have lost confidence that the board is going to spend its money in ways which will benefit businesses, not least because of the influence of the two local authorities. Funded by a compulsory levy on rate-payers in the town centre, it has an annual income of around £500,000. They say:

“Such transformative commercial imperatives as free parking would be unlikely ever to be championed by Harrogate BID, as they have been by other BIDs across the country, while there is such a strong council influence on its board, and the business plan forces spending on areas that do not address the key issues.”

The resignations come just 10 days after the announcement of a new manager for the BID, Simon Kent. The four directors recognise his appointment and wish the remaining board members well, but say:

“Much as it pains us to state this, Harrogate was struggling before COVID-19. Now, the reality of the situation is becoming very serious indeed.”

More:

Read the resignation letter in full

Where does Harrogate BID go from here?