Hexham BID business levy to be scrapped over 'retaliation' fears

The project was intended to "bring about positive improvements to the trading environment"

A scheme which sees firms in a Northumberland town charged a compulsory levy to fund improvements is to be scrapped amid fear of "vicious retaliation" by opponents.

Directors of the Hexham Business Improvement District (BID) said they had instructed Northumberland County Council to wind up the company.

It has been beset by problems since it was launched in 2016.

Last year about 150 firms in the area refused to pay.

A total of 232 out of the town's 650 registered businesses took part in a 2016 vote, with 66% of those opting in favour of creating a BID.

Firms were expected to contribute up to £10,000 a year each with the funds spent on improvements in the town.

'Upsetting allegations'

Announcing their decision to scrap the venture, the BID directors said a "small minority had no other motive than the destruction" of the organisation.

They said opponents had made "a series of untrue and often deeply upsetting accusations" and were "picking out directors and staff for individual attacks whilst looking to encourage boycotts of any director's business".

"The perception is that no-one involved in business can join the BID board for fear of vicious retaliation to themselves and their business," their statement added.

Paul Robbie said "extracting money from small businesses was never going to help" the town

Garage owner Paul Robbie, who opposed the scheme, said it had been "the most divisive thing that's come to Hexham".

"I would've have had to pay £2,000 over five years on an industrial estate where I wouldn't see any benefit from it."

Asked whether threats had been made, Mr Robbie added: "There have been things said in the past, there have been things said on social media, not all of which I agree with but it's been a two-way street.

"I'm a working man. Some of the terminology that we use doesn't sit with people who've been trained in how to speak PC [politically correct] and government-speak.

"I'm not quite sure I'd call it vicious. It works both ways."

Councillor Richard Wearmouth, cabinet member for economic development at Northumberland County Council, said: "It has become clear for a variety of reasons that a BID cannot at present work for Hexham and the council will now work with all parties to appropriately terminate the arrangement.

"The council will continue to work with all stakeholders in Hexham to encourage investment and growth in the town."