Bailiffs pressure firms over new business levy
DEBT collectors have turned up at the doors of businesses which refused to pay a levy towards a town improvement scheme.
Outraged traders have accused the Hexham Business Improvement District (BID) team of using heavy-handed tactics to recover the cash.
Companies within the town’s designated BID area are obliged to pay between £200 and £10,000 a year, but some have refused, claiming they don’t see value from the group.
Graham Reader Motor Engineer Ltd on Burnhaugh Estate was among the businesses visited by bailiffs last week.
Owner Graham Reader said: “I never wanted to be a part of it but had the debt collectors turn up at my door, so had to hand over £490.
“My family was there as it was my daughter’s 21st birthday. It is ridiculous and is getting personal now.
“I haven’t spoken to one person who wants the BID. It does not benefit me as I am on an industrial estate. If I want to put flowers up I’ll do it myself.”
Paul Robbie, of Paul Robbie Motor Services, refused to hand over £450 to the bailiffs when they turned up at his door.
“There’s a lot of anger, absolute anger, and I’ve never known anything to split a community like this,” he said.
In April, Northumberland County Council was granted additional powers by Newcastle Magistrates’ Court to collect the debt owed.
It came after court summons were issued to 150 traders for not settling their bills, totalling around £15,000. The council said 94.3% of businesses have now paid the levy for 2016/17.
A council spokesman said: “The Hexham BID is a properly constituted organisation which is operated by the Hexham BID Company and not the council. Where a BID is established by the business community, the council is then statutorily required to collect the levy on its behalf.
“The council collects the levy, including taking any necessary recovery action, in line with all relevant legislation.
“We would urge businesses to pay their BID levy as soon as it becomes due in order to avoid unnecessarily incurring substantial court and enforcement costs.”
The BID came into force in October last year after 66% of the 232 businesses who voted were in support of the plans.
The Hexham BID website said the scheme gives businesses “the power to raise their own funds to address the priorities that matter to them, and to bring about positive improvements to the trading environment that benefits the whole community”.
Hexham BID manager Helen Grayshan declined to comment.