There is now considerable interest in finding new ways to deliver urban regeneration. In the context of city centres, one approach relies on local businesses and property owners to voluntarily pay a higher voluntary tax to secure an improvement in the locality. This could become a government solution to Scottish city centre regeneration.
Joint-research carried out by planning experts at the University of Dundee and the University of Ulster has suggested the potential of Business Improvement Districts (BIDs) as a possible way of boosting certain Scottish city centres.
Under the BIDs scheme, stakeholders in a city centre area would form a local organisation, and constitutionally agree to levy an additional tax. The revenue would then be hypothecated in order to upgrade the city centre area as agreed by the stakeholders. This would provide services over and above those normally provided by the local authority, and may address the specific problems of the area. The improvement in the city centre then is expected to lead to greater business.
Creating BIDs in cities such as Glasgow, Edinburgh and Dundee could ultimately contribute to the broader regeneration of a city by creating more jobs and attracting more visitors, and their spending power, into the city centre.
But the researchers warn that BIDs have limitations for urban regeneration as a whole since the research shows that the measure tends to be more effective where there is an established city centre economy.
The Scottish Parliament recently expressed an interest in the BIDs idea, and the research can help inform future policy design. The research was funded by the Economic and Social Research Council.
Professor Greg Lloyd, head of the School of Town and Regional Planning at the University of Dundee, and joint author of the "Fiscal Incentives for Urban Regeneration" report said, "The research looked at various tax-based measures to encourage urban regeneration, specifically the experience in Irish and American cities.
"The most suitable likely option for Scotland would be the creation of BIDs, which would allow certain town centres to put in place a source of income to provide services over and above those provided by the local authority.
"A good example of the BID scheme in practice is Times Square in New York which, 15 years ago or so ago was a dirty, down at heel, graffiti covered eyesore. Today, following the creation of a BID, it is the safest part in New York, and provides shopping, tourism and entertainment facilities for the city."
Greg Lloyd can be contacted at the University of Dundee on 01382 345323
Note to Editors:
Business Improvement Districts (BIDs) represent a local self-help
initiative and funding mechanism for coalitions of business interests
and property owners. BIDs are a voluntary form of self-taxation for
hypothecated purposes, usually the physical improvement of the defined
locality based on the principle of stake-holding in the local community.
The intention is to enhance the residential, commercial or retailing values of the BID area. Supplementary functions include security and police enforcement, maintenance and sanitation improvements and facilities, provision of promotions and special events. The BID revenue can also be used to provide capital improvements, such as street furniture, landscaping and street signing.
The research indicates that BIDs have the potential to achieve a range of regeneration outcomes. But they also involve problems: they are time-consuming to set up, operate and renew - much time and effort must be spent on effective communication to stakeholders in the BID area to avoid wasteful conflict between groups.
The research project 'Fiscal Incentives for Urban Regeneration' by Professor Greg Lloyd, Mr John McCarthy, Dr Jim Berry and Professor Stanley McGreal was funded by the Economic and Social Research Council (ESRC).
Greg Lloyd and John McCarthy are at the University of Dundee; Jim Berry and Stanley McGreal are at the University of Ulster.
The ESRC is the UK's largest funding agency for research and postgraduate training relating to social and economic issues. It has a track record of providing high-quality, relevant research to business, the public sector and government. The ESRC invests more than £46 million every year in social science research. At any time, its range of funding schemes may be supporting 2,000 researchers within academic institutions and research policy institutes. It also funds postgraduate training within the social sciences, thereby nurturing the researchers of tomorrow.
The ESRC website address is www.esrc.ac.uk