Business Improvement District On Its Way?

It was reported yesterday in the Lancashire Evening Post (LEP) that there are plans for a Business Improvement District. If given the go-ahead it would approximately propel £1.5 million into the city centre. Several institutions have got behind the proposals, with the University of Central Lancashire being one of these. However, some organisations including Marks and Spencer have yet to pledge their support. The vote is to take place at the end of next month. For the project to be approved over 50% of the landowners and businesses have to agree to the proposals.

This made me stop and think, where is the catch? Why would businesses want to collectively put their money into a pot to improve Preston town centre? Well the simple theory is that for businesses it is short term pay for long term gain. By improving the local area this will result in businesses making more capitol.

As we all know we are currently in a time of hardship, well economically at least! This is due to the credit crunch and the stock market being in disarray. I am only speculating but are businesses keen for a Business Improvement District because people are spending less? After all this is resulting in their profits being lower than usual. By backing the proposals they know that it is going to benefit them, as it will enhance sale figures. Are they doing it for themselves, or are they doing it to improve Preston town centre?

In fact, what does need to be improved in Preston town centre? Personally, nothing instantaneously springs to mind. If indeed the project is given the go-ahead I for one will be keeping a close eye on what the money is spent on.

References:

Lancashire Evening Post, Tuesday 30th September 2008, LEP Business Week page 1.
http://www.chamber.org.uk/pics/Business%20Improvement%20Districts%20Information.doc