PLANS for a new Business Improvement District (BID) in Kidderminster town centre have failed – despite backing from most companies who took part in a ballot.

A total of 72 per cent of companies in the proposed BID area – incorporating the town centre and Crossley Retail Park – voted in favour of the initiative.

But the scheme fell down as the aggregate rateable value of businesses in favour of it fell just below the required threshold of 50 per cent.

A Business Improvement District (BID) is a precisely defined geographic area in which companies pay a small extra levy on their rates to fund additional services such as events and initiatives aimed at boosting footfall and fostering growth.

The proposal in Kidderminster was to pay an extra 1.5 per cent of business rates, which representatives of local businesses would have decided how to spend.

Out of a total number of 392 eligible businesses in Kidderminster, 95 votes were cast. With 68 supporting votes, 72 per cent of businesses voted in favour of the BID.

The aggregated rateable value of businesses that voted was £8,419,975 but the total amount paid by firm in favour was £4,058,525 voted in favour - 48.2 per cent.

Council bosses said the figures suggested that some larger rate payers that voted did not support the proposals.

Councillor Ian Hardiman, Wyre Forest District Council’s Cabinet Member for Planning and Economic Regeneration said: “We are very disappointed with the result of the ballot.

“The Council had facilitated and funded the resources for the businesses to develop the BID proposal and it is a matter of regret that not enough businesses have supported it.

“There are many examples of other areas where BIDs have been successful and they have provided a real boost to the growth and vitality of their towns and improved the involvement of the business community.

“It is a pity that not all Kidderminster businesses have bought into the same collective vision as businesses in other towns.

“Nevertheless a clear majority of businesses that voted recognised the benefits of a BID and no doubt there will be many businesses that are disappointed with this result and I hope that they will maintain the momentum that they have established and look at ways that a successful result could be achieved in the future.”