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North Yorkshire Council has announced it will not use its voting power to influence ballots on the creation of business improvement districts (BIDs). 

The purpose of BIDs is to boost economic activity within their area, and they are funded by an additional levy on local business ratepayers. In Harrogate, the 1.5% levy raises more than £500,000 a year. 

BIDs are created following a majority vote by these ratepayers, which include local authorities. Because councils own so much town-centre property, they typically wield considerable voting power.

Harrogate BID was first created in 2018 after business ratepayers voted for it, and the result was in part due to the support and votes of Harrogate Borough Council. Ripon BID was created in 2021, also in part due to the support of the council. 

But when Harrogate BID came up for renewal in 2023, North Yorkshire Council – Harrogate Borough Council’s successor – chose not get involved, leaving it to businesses to decide. That vote went through with 76% in favour; the council’s backing would have added a further 12% to that figure. 

In its latest announcement, which was prompted by a vote on the Yorkshire Coast BID, North Yorkshire Council has maintained that stance and formalised it. 

A decision of the chief executive published this week stated: 

“The council is aware that due to its rateable value across North Yorkshire, that if it were to vote there is a risk that it could have a disproportionate impact on the outcome of the ballot. It is estimated that North Yorkshire may hold around 10% of the voting value for the YC BID. 

“The council therefore intends to abstain in the forthcoming Yorkshire Coast ballot, or other future BID levy ballots across North Yorkshire, to limit its influence and ensure it is businesses who determine the outcome.” 

Locally, the decision affects Harrogate and Ripon, where BIDs are already in place, and may in the future affect Knaresborough, if businesses there decide to create one. They narrowly voted against the idea in 2021. 

In Harrogate, town centre businesses will next be able to vote on whether or not to fund Harrogate BID for a third term in 2028. Ripon BID comes up for renewal in 2026.

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