Firms in Harrogate town centre will be balloted in June over whether to continue to fund a business improvement district.

A total of 462 businesses in Harrogate town centre currently pay a levy of 1.5% on top of their rateable value to fund Harrogate Business Improvement District.

It is one of more than 350 BIDs in the country, set up to increase footfall by providing additional services to those run by councils.

Harrogate BID was set up in 2018 when businesses voted by 108 to 23 in favour of the initiative.

Businesses will vote again in June on whether to continue supporting it. The ballot will open on June 1 and close on June 28. The result will be announced the following day.

Ripon has a BID but Knaresborough rejected one.

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BID chief executive Matthew Chapman outlined the organisation’s achievements at this week’s annual general meeting at the Crown Hotel and made the case for the continuation of the organisation.

Mr Chapman said businesses could step into the void created by the abolition of Harrogate Borough Council on April 1. He said:

“It’s a key time with Harrogate Borough Council going. The town will lose a voice for a time and we believe we can step in and be that voice.

“BIDs in their second terms often go on to bigger and better things.”

Sara Ferguson speaking at the annual general meeting.

The BID spent £608,844 last year to record a deficit of £13,737. Mr Chapman said the deficit would be wiped out when levy bill reminders and court summons prompted some late payments.

The BID funded initiatives such as free car parking, free buses into town, street cleaning, street entertainers, floral displays, Christmas lights, Harrogate lego trail and the platinum jubilee celebrations on the Stray.

Dan Siddle, general manager of the Crown Hotel, and Primark manager Andrea Thornborrow recently replaced Sara Ferguson and Richard Wheeldon as chair and vice-chair respectively.

Streets included within the Harrogate BID boundary:

Albert Street, Beulah Street, Bower Road, Cambridge Crescent, Cambridge Road, Cheltenham Crescent, Cheltenham Mount, Cheltenham Parade, Cold Bath Road, Commercial Street, Crescent Road, Crown Place, Dragon Parade, Dragon Road, East Parade, East Park Road, Haywra Crescent, Haywra Street, James Street, John Street, Kings Road, Market Place, Montpellier Gardens, Montpellier Parade, Montpellier Road, Montpellier Street, Mount Parade, North Park Road, Oxford Street, Park Parade, Park View, Parliament Street, Princes Square, Princes Street, Prospect Crescent, Prospect Place, Queensway, Raglan Street, Ripon Road, Royal Parade, Springfield Avenue, Station Avenue, Station Bridge, Station Parade, Station Square, Studley Road, Swan Road, The Ginnel, Tower Street, Union Street, Victoria Avenue, Victoria Shopping Centre, West Park, York Place

Simon Kent, who helped to establish Harrogate Business Improvement District in 2018, has been appointed interim manager for a second time.

The news was confirmed today after current manager Matthew Chapman announced he was leaving in November to take up a new position at North Yorkshire Council.

Businesses within Harrogate’s town centre pay the BID 1.5 per cent of their rateable value a year on top of their usual business rates.

Matthew Chapman

This generates around £500,000, which the BID spends on projects to improve the town and increase the number of visitors.

Mr Kent, a former director of the Harrogate Convention Centre, was previously appointed interim manager in April 2020.

Harrogate BID chair Sara Ferguson said:

“Whilst we continue the process of seeking a new BID manager, we have appointed Simon Kent in an interim role.

“Simon was instrumental in helping to launch Harrogate BID back in 2018, and in April 2020 we asked him to take on the role of interim manager, which he did until May the following year.

“Simon’s experience and knowledge of Harrogate BID are second to none, and I’m delighted that he has agreed to come back in a part-time-basis until a successor to outgoing BID manager, Matthew Chapman, is found.

“I look forward to rekindling my working relationship with Simon, particularly as we head towards the festive season, which with the BID’s involvement will see Harrogate once again become ‘Destination Christmas’.”

Harrogate business leaders have warned that Liz Truss’s energy plan is “too little too late” to save struggling firms from closure.

The new prime minister today announced that annual energy bills for households will be frozen at £2,500 until 2024 as part of a huge support package which could cost up to £150 billion.

However, the scheme is less generous for businesses than had been expected as their bills will be capped for six months – a shorter period than many had hoped for.

Sara Ferguson, chair of Harrogate BID, said:

“As the owner of a town centre restaurant, one that uses a lot of gas and electricity, I don’t think the support being offered goes far enough, or long enough.

“It pains me to say this, but even with the energy price cap some business will simply not be able to pay higher bills.

“It is going to be another tough time for the high street.”

Energy prices have soared this year, largely due to the conflict in Ukraine which has reduced supplies of gas.

This has driven up the UK energy price cap which sets the highest amount suppliers are allowed to charge households and had been due to rise from £1,971 to £3,549 in October.

Unlike households, small businesses are not covered by the cap and Harrogate district MPs were last month warned that many firms would soon reach a “tipping point”.

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Speaking in the commons today, Ms Truss said she was “acting immediately” in her premiership and that the support for businesses may be extended for vulnerable sectors after the six-month period.

“Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again.”

Reacting to her announcement, David Simister, chief executive of Harrogate District Chamber of Commerce, said it would be “too little, too late” for some businesses.

“Businesses have had it incredibly tough for more than two years, and it isn’t going to get any easier. Surging energy costs are just one of the pressures facing businesses.

“When Ms Truss recently came to Harrogate, members of Independent Harrogate challenged her about business rates.

“Her response was that she would review them. This she needs to do urgently, along with looking at VAT, fuel duty, National Insurance and corporation tax.”

Harrogate Business Improvement District is set to outline its plans for 2022, which will include street entertainment and pop-up markets.

Officials from the BID will hold their annual general meeting at the Crown Hotel today to outline plans for the year ahead.

The plans will include a “HastobeHarrogate” promotional campaign, as well as a street ranger whose remit will be to keep the town centre clean and tidy.

The BID is also planning street entertainment which will include home-grown theatrical talent, who will be performing in the town centre over a series of weekends throughout the year.

Sara Ferguson, chair of Harrogate BID, said:

“The good news is that we are going to do more to make Harrogate even more appealing, giving locals and visitors plenty of reasons to ‘pop into town’ time and time again.

“This month our street ranger, whose main remit is to keep the town centre looking spick and span, will make his official debut. So, look out for him and his branded electric vehicle complete with jet washer.

“Our street cleansing crew will be back in March for the first of four major cleaning and weeding sessions, and ensuring Harrogate looks fresh and clean in time for the Easter holiday.

“Our barrier baskets and planters will again be giving Harrogate a vibrant burst of colour and clearly demonstrating why it is renowned as a floral town.”

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Proposals outlined by the organisation will coincide with the queen’s platinum jubilee, which will take place over four days in early June.

Officials at the BID said its plans for the year are designed to make the most of the event and entice ore people into the town centre.

Ms Ferguson said this would include a partnership with LoyalFree to create a series of ‘shop local’ campaigns, aimed at promoting Harrogate as Yorkshire’s number destination to “shop, eat and drink”.

She added that the BID also intended to look into “hosting a series of pop-up markets” off the back of the Christmas Fayre.

A Harrogate hospitality business has claimed the government has thrown the industry “under the bus” since the Omicron variant hit the country.

Peter Banks, managing director of Rudding Park Hotel and Spa, said his business had seen £100,000 worth of cancellations due to covid recently.

He blamed mixed messaging from government and called on Chancellor Rishi Sunak to offer more support to hospitality businesses.

Mr Banks told the Stray Ferret:

“The government’s lack of clarity has thrown the hospitality industry under the bus.

“They need to make a decision. They either come out with a clear message, go out or do not go out.

“I’m lucky that I have a wide enough base of business to draw upon, but there will be businesses that will struggle.”

Mr Banks added that most of his cancellations were corporate clients worried about the possibility of spreading covid among their employees.

He echoed calls from other hospitality firms across the country, which have urged Mr Sunak to offer more support, such as an extension to the VAT cut and business rates relief, to help the industry.

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Mr Banks said hospitality firms, especially those in city and town centres, “could do with some assistance”.

Sara Ferguson, chair of Harrogate Business Improvement District and owner of two local restaurants, said cancellation of Christmas parties was having a financial impact on Harrogate’s key hospitality sector.

She said:

“As soon the Prime Minister announced wearing masks in shops and on public transport was mandatory, hospitality industry trade began dropping away. And this was made worse with the work from home message.

“Christmas parties being cancelled at short notice is proving a financial nightmare, particularly as venues will have already ordered in the food and drink, and there’s no one taking these places.

“December is usually boom time for the hospitality trade, and many businesses rely on the takings from this month to see them through the quieter months of January and February.

“Sadly, for many this won’t be the case this year, and I fear that a number of businesses will be forced to close their doors come the new year.”

Ms Ferguson, who owns Sasso and Caffe Marconi, agreed that the industry needed support from Mr Sunak. She said:

“While there is no official lockdown yet, the message from politicians has resulted in the public shutting themselves away, and as a result there definitely needs to be some sort of financial support offered to the hospitality industry.”

David Simister, chief executive of Harrogate District Chamber of Commerce, said:

“Walking through town this lunchtime there were plenty of empty tables in pubs, bard and restaurants.

“Within hours of the Prime Minister announcing we all had to wear facemasks in shops and on buses and trains, businesses started cancelling their staff Christmas parties at hotels. And that is continuing at a pace.

“However, it’s not just the venues themselves who have lost vital revenue from food and drink sales, it’s the suppliers and staff who are out of pocket too.

“And come January, when ‘bounce back’ loans start to be repaid, I think we could see a lot of businesses in real trouble.

“The health of the economy is in a critical condition, and there needs to be some form of emergency financial aid for these businesses who are suffering through to no fault of their own.”

Chancellor urged to support hospitality

Yesterday, the chancellor cut short a trip to California after holding talks with hospitality firms via video link.

Mr Sunak has been under growing pressure to come up with support for hospitality as record covid numbers hammer takings.

Previous support offered to businesses, such as furlough, has already ended, while a 12.5% VAT cut is set to finish in March.

UK Hospitality, which represents firms across the country, has also called for business rates in the first quarter of 2022 to be deferred.

The government has not placed any restrictions on hospitality firms amid rising covid cases. However, Prime Minister Boris Johnson urged people on Wednesday to “think carefully” before socialising.

Harrogate Gift Card enjoyed its best-ever month in December, as 392 cards were bought with a combined value of £17,200.

The cards, which can be pre-loaded with any value up to £500, are redeemable at more than 90 town centre shops, restaurants, bars, cafes, businesses and attractions.

Participating businesses include Bettys, Crown Jewellers, Dizzy Duck, Harrogate Theatre, Yorkshire Farmers Meat Co, Rhodes Wood and Blamey’s Florists.

The initiative, which is free for businesses to sign up to, ensures that every £1 pre-loaded onto a card stays within the local economy.

Sara Ferguson, chair of Harrogate Business Improvement District, said many people regarded its card as an ideal Christmas present. She added:

“It was also particularly pleasing to note that a number of businesses and organisations bought cards as gifts for employees and clients.

“The biggest single transaction recoded at the beginning of the month was for 50 cards!

“The BID’s remit is to increase footfall, spend and dwell time within Harrogate town centre, and the Harrogate Gift Card is one such initiative helping us support our high street.

More information on the Harrogate Gift Card, which during lockdown can only be purchased online, is available here.

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Have you seen our Shop Local section? You can shop online and continue to support Harrogate businesses during lockdown. Click here to find out more.

Harrogate BID has elected a new chair for the next 12 months, with a unanimous vote in a virtual meeting.

Sara Ferguson, who co-owns Sasso and Caffe Marconi, had been the acting-chair since last May.

She stepped up into the role when former chair Bob Kennedy resigned along with three directors in April last year.

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As well as the appointment of Sara Ferguson as the chair, six new directors have joined the board.

Bokmun Chan, Studley Hotel & Orchid Restaurant, Nick Hubbert, Hoopers, Dan Siddle, the Crown Hotel, and Wayne Topley, Cedar Court Hotel have just joined.

Jim Mossman, Cold Bath Brewing Co, and Lesley Wild, Bettys, have been co-opted members since last summer.

Existing board member Richard Wheeldon, Berwins Solicitors, has taken on the position of Harrogate BID deputy chair.

Harrogate BID chair Sara Ferguson said:

“I’d like to thank my fellow directors for placing their faith and trust me for the coming 12 months, and I’m proud to become Harrogate BID’s chair.

“I’m also delighted Richard Wheeldon, who has been involved with Harrogate BID since its inception, has agreed to become deputy chair.

“In officially welcoming the new board members, who bring with them a wealth of business experience, I’d like to thank those directors who stood down at the AGM, for their contribution over what was an exceptional 12 months in many ways.”