Report Says Scarborough Borough Council Should Not Have Taken Part in BID Ballot

Scarborough Borough Council should have abstained from voting in the ballot that created the Yorkshire Coast BID in 2018 according to members of the council's audit committee.

A DBID Working Group was set up by the Borough Council's Audit Committee following a recommendation from the Chief Executive’s report into the DBID process back in April 2021.

The report was presented to members of the Audit committee yesterday.

The report says that that:

"due to the councils disproportional influence upon the vote as well as its position as a public body, the Council should have made the decision to abstain."

Votes from the Borough Council and East Riding of Yorkshire Council helped pass the motion to establish the Business Improvement District back in 2018.

In total there were 217 votes in favour of the bid, and 175 against, a margin of 42, it later turned out 68 votes came from the Borough Council and East Riding of Yorkshire Council - both were able to vote as their car parks and toilets counted as eligible businesses. North Yorkshire County Council was eligible to vote but chose to abstain.

The report concludes that local government should not take part in the vote when the renewal ballot for the BID takes place in 2024 but as Scarborough Borough council wont exist by then that decision will rest with the new unitary council.

Council Legal officer Carol Rehill read some of the report's recommendations at the Audit Committee meeting.

The working party also say they felt that the BID company lacked transparency and had failed to engage adequately with the businesses in the area.

Members said they were frustrated that the YCBID’s website was not clear and they had difficulties finding details on its projects, finances, and governance.

Councillors working on the report say it was a frustrating process - Councillor Heather Philips was one of those involved.

In reaching its recommendations to the Working Group said it was

"conscious that a committee of SBC could not bind the new unitary authority for North Yorkshire. They could merely make recommendations for consideration in view of the work the Group had undertaken."

The Working Group put forward the following recommendations for the Audit Committee:

1. That the new unitary Council for North Yorkshire should not play an active role in any future ballot to re-establish the Yorkshire Coast Business Improvement District at the end of the current BID’s term.
2. That the Yorkshire Coast BID should be business led and that the new unitary Council for North Yorkshire should abstain from voting in any future ballot to re-establish the Yorkshire Coast Business Improvement District at the end of the current BID’s term.
3. That the new unitary Council for North Yorkshire should have the opportunity to debate and declare whether they are or are not in support of a renewal of the Yorkshire Coast Business Improvement District at the end of the current BID’s term;
4. That Scarborough Borough Council should make a formal determination on its representation on the YCBID Board and whether it should be a Member, Officer, or one of each by means of an alternative Director.

A full meeting of the borough council next week will be considering a no confidence motion in the Yorkshire Coast BID which has been tabled by  Councillor Bill Chatt. The motion states:

‘In light of extraordinary, unforeseeable and unpredicted hardships to businesses throughout the pandemic and these early days of its aftermath, will this Council, in consideration of the many unprecedented challenges facing BID Levy-payers now additionally burdened by repayments under the Coronavirus Bounce Back Loan Scheme (BBLS), now examine and debate the past and present performance of the Yorkshire Coast BID, its future operation and fitness for purpose and pass a Vote of NO CONFIDENCE in Yorkshire Coast BID Ltd?’

Clive Rowe-Evans, Chair of the Yorkshire Coast Business Improvement District said:

“We’re disappointed to see the motion of no confidence that is up for discussion at the upcoming Scarborough Council meeting on Thursday 28th July.

“Over the last 3 years, the Yorkshire Coast BID has supported 83 different projects across the region and our investment to date of £1.4 million has attracted a further £848,000 match funding which has gone back into the community to boost the local economy and drive tourism. These projects have been for a variety of different initiatives and events designed to drive footfall and highlight the cultural offerings available in the different coastal towns.

“We were the only BID in the UK to have granted a 12-month extension to outstanding payments as we sympathised with those businesses that had experienced struggles during the pandemic.

“The Yorkshire Coast BID will continue to support all those levy payers who have backed the BID until at least July 2024 and we will continue to deliver a programme of initiatives that promote, protect and support the Yorkshire coast.”