Under consideration PE2291: Introduce statutory metrics to define disproportionate Business Improvement District levies
Calling on the Scottish Parliament to urge the Scottish Government to amend the regulations under the Planning etc. (Scotland) Act 2006 to introduce explicit statutory metrics, numeric tolerances, and comparative examples that legally define a "significantly disproportionate financial burden" within the Business Improvement District (BID) framework, thereby empowering and mandating local authorities to exercise their statutory veto powers if a proposed BID levy structure places an inequitable financial strain on low rateable value properties.
Background information
Section 42(3) of the Planning etc. (Scotland) Act 2006 lets councils veto a BID ballot if it creates an unfair burden. This safeguard is non-functional because the law lacks mathematical metrics, leaving councils legally exposed.
Proposers win ballots by offering deeply discounted levies to high rateable value (RV) corporate properties to secure their votes. This shifts severe strain onto small businesses. Scottish Parliament Information Centre (SPICe) data exposes this distortion:
• Fort William BID: Small properties paid 2.38%–6.66% of RV; a £1.1M corporate entity paid just 0.279%.
• Visit Moray & Speyside: Small businesses paid up to 12.5% of RV; a £6.9M property paid a token 0.05%.
Aggressive debt enforcement by Sheriff Officers causes severe trauma to local traders. Since 2006, 19 BIDs have stopped and 12 failed their ballot. The Scottish Government must introduce objective statutory metrics to empower councils to veto unfair levy distributions before ballots occur.
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