City of London Riverside Improvement District Sparks Controversy
The City of London Corporation is facing significant pushback over its proposal to establish a new Business Improvement District (BID) along the Thames riverside, with critics labeling it as unnecessary and financially burdensome. The proposed City Riverside BID, which would span from the new Bazalgette Embankment towards the Tower of London on the north bank of the river, has ignited concerns among local businesses and elected officials regarding costs and the transparency of the decision-making process.
Financial Concerns and Opposition from Local Stakeholders
Deputy Jaspreet Hodgson, representing the Vintry ward, has been vocal in her opposition, stating that businesses have communicated their disapproval "loud and clear." The proposed BID would impose a one per cent levy on businesses with a rateable value exceeding £200,000, capped at £30,000 for higher-value enterprises. This levy is projected to generate approximately £6.7 million over a five-year term, intended to fund enhancements such as a greener and safer riverside corridor and the development of a unified identity for the area.
However, Roberto Pajares, General Manager of the Vintry and Mercer hotel, expressed grave concerns, noting that additional costs could force businesses to cut back, ultimately stifling growth. "Our hotel and the surrounding businesses have faced growing costs in recent years, including the City of London Corporation's decision last month to increase the Business Rate Premium," Pajares explained. "Further taxes and levies, like the proposed BID levy, will force us to find savings, ultimately hurting growth. We're calling on the City of London Corporation to abandon the BID proposal. Businesses here can't afford it and don't want it."
Transparency Issues and Ballot Process Under Scrutiny
The transparency of the consultation process has also come under fire. Common Councillor Mark Wheatley of the Dowgate ward highlighted "deep concerns about the lack of transparency over decision-making on the potential creation of a riverside BID." He emphasized the need for a robust and transparent referendum process if the Corporation proceeds with a ballot, urging clarity on how employers will select representatives to vote on behalf of their businesses.
Despite these criticisms, the City of London Corporation maintains that the BID proposal has been developed over two years in collaboration with riverside businesses to support economic growth and regeneration. A spokesperson stated, "It sets out an ambition to see a reconnection of the river with the Square Mile and a greener, safer and more vibrant riverside environment." The Corporation appointed consultancy Primera in March 2023 to assess the feasibility of the BID, leading to the formation of the City River Partnership LTD, which has since conducted outreach to gauge business interest.
Political and Community Resistance
Political resistance is mounting, with two of the seven wards affected by the proposed BID—Vintry and Dowgate—passing resolutions calling for the cancellation of the ballot. Deputy Hodgson argued that the Square Mile already functions as a de facto BID, with businesses paying a Business Rate Premium and electing common councillors to represent their interests. "That makes the idea of a BID even more unnecessary and unwanted," she asserted, pledging to continue advocating for businesses in her ward against what she views as unnecessary additional costs.
The Policy and Resources Committee is set to decide on whether to proceed to a ballot, following a deferred decision from last month due to raised concerns. While an analysis involving 93 businesses conducted between June and August last year indicated 70 per cent support for the BID, opponents question the representativeness of this feedback and the overall consultation methodology.
As the debate intensifies, the future of the City Riverside BID remains uncertain, with stakeholders on both sides preparing for a potentially contentious decision that could impact the economic landscape of London's historic financial district.
