Levelling-up and Regeneration Bill

Lord Northbrook Excerpts

Report stage
Thursday 13th July 2023 Lords Chamber

Moved by

[Lord Northbrook]

64: After Clause 78, insert the following new Clause—
“Business improvement districts(1) Within 6 months of this section coming into force, the Secretary of State must launch a review of arrangements for business improvement districts (“BIDs”).(2) The review must consider whether the arrangements should be changed so that—(a) local residents are consulted on proposals to establish a BID,(b) local residents are represented on BID proposal groups which prepare the business plan,(c) local residents participate in the vote on the establishment of a BID,(d) local residents are represented on BID management bodies, and(e) local planning authorities may veto BID proposals if there is significant objection from local residents.”

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[Lord Northbrook (Con)]

My Lords, Amendment 64 seeks to amend the legislation on business improvement districts—BIDs—so that residents have a say in their establishment, policies and management bodies.

There has been widespread criticism of the undemocratic way in which BIDs are established and operate. The Government website says:

“There is no limit on what projects or services can be provided through a Business Improvement District. The only requirement is that it should be something that is in addition to services provided by local authorities”.


As a result, powerful local businesses can push through projects for their own commercial benefit, for which they are willing to pay. In my area, the Royal Borough of Kensington and Chelsea is happy to agree to them if they can be described as “improving the public realm”. Local residents may be affected by these projects—streetscape, street furniture, new advertisements and clutter, narrowing of the carriageway, unwelcome new parking and traffic management arrangements and other anti-motorist measures—but they cannot influence them.

I want to say a few words about two BID schemes in the borough in which I live. The Cadogan estate, for which I have the highest regard—it has done some great developments in Duke of York Square and Pavilion Road, for instance—has initiated and established two BID schemes. Following Committee, I have been asked by the chief executive, Hugh Seaborn, to re-examine the comments that I made about lack of consultation during that stage; I am grateful that he is reading our debates. Having reviewed the matter, I have to correct some of my comments. Residents’ associations—Brompton, MISARA and the local society, the Chelsea Society—were consulted by Cadogan but their views do not seem to have been taken into account in the final decision. In fact, they might as well not have been consulted at all.

I believe that the BID legislation should be amended so that local residents, first, are consulted on proposals for their establishment; secondly, are represented on BID proposal groups that prepare the business plan; thirdly, participate in a vote on the establishment; and, fourthly, are represented on BID management bodies. In addition, local planning authorities—LPAs—should be able to veto BID proposals if there are significant objections from local residents, not just if they conflict with a significant policy of that LPA.

The Minister’s response in a letter on BIDs was that

“the majority of BIDs set Baseline Agreements with their local authority to demonstrate the additionality it will provide over the term of the BID. The Government encourages the use of clear agreements and the fostering of strong ongoing relationships between BID bodies and their local authorities, to make sure each is aware of their obligations towards one another and to agree changes to such agreements where appropriate. The BID itself is responsible for deciding on the mix of representatives to ensure their Governance Board is an effective decision-making body with the right skills. The legislation does not preclude local authorities from being represented on the BID board, nor residents or members of the community”.

My reply to that would be that the Minister’s response did not answer the point. Indeed, the legislation does not preclude residents from being represented on the board of a BID, but what happens at present is that BID promoters make arrangements for their own commercial advantage and exclude resident representation as they know that the views of local residents will conflict with those of the business promoters.

My noble friend Lady Scott of Bybrook did not explain why she opposed the amendment. She said that local authorities are represented on some BID boards and reiterated that

“the legislation does not preclude residents … from being consulted”.

She also said:

“It is right that the businesses that will be required to fund the BID make the decisions on whether there should be consultations”,—[Official Report, 20/3/23; col. 1645.]


effectively concerning their undemocratic nature.

The Knightsbridge BID board of 19 people has one council officer and one RBKC councillor who does not represent any residents living in the area covered by the BID. I fear a repetition of the damage that has already been caused to Sloane Street, narrowing the carriageway so as to create dedicated parking bays and installing large, ugly planters to prevent ram-raiding. This is why I have tabled Amendment 64.

I also wish to speak to Amendment 65, which seeks to prepare a code of practice for major, non-statutory consultations by local authorities to ensure that they are impartial and not manipulative. Within six months of this section coming into force, the Secretary of State must publish a code of practice for major, non-statutory consultations by local authorities. The code must recommend ways to ensure impartiality, including, first, having a consultation conducted by an independent third party; secondly, having the consultation materials and process pre-approved by such a party; or, thirdly, having those materials and process submitted in draft to the main stakeholders for their review and comments in advance of the consultations. The Consultation Institute commends on its website The Art of Consultation, by Rhion Jones and Elizabeth Gammell, as:

“A unique book, essential to those involved with consultations … There’s a multi-million-pound industry out there, currently asking us what we think. Lots of this is public money and much of it is wasted. Whilst a great deal of consultation is effective, some of it is downright dishonest; decision-makers have already made up their minds. If they then consult, it’s a waste of everyone’s time; they are just going through the motions”.

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[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)]

My Lords, Amendment 64 in the name of my noble friend Lord Northbrook concerns a review of business improvement districts. I have listened very carefully to this debate and the debate in Committee. We want BIDs to work with and alongside residents and members of the local community. It is important that the projects and activities that a BID delivers benefit the local area and encourage more people to visit, live and work there. Residents and members of the community are not prohibited in legislation, as I said in Committee, from being consulted on a new BID proposal. I know many BIDs that include many stakeholders, including the communities they serve. There is nothing to stop a local authority doing that.

It is clear that we need to explore how BIDs can work better with residents and communities, but I do not believe that legislating for a review in this Bill is the right approach. I therefore ask my noble friend to withdraw this amendment, but with my reassurance that I will take this away and consider the proposition of a government review of the BID arrangements. I would welcome further conversations with interested noble Lords to take this forward.

On Amendment 65, there is a statutory framework, and clear rules for consultation already exist in some areas, such as planning. There is also a statutory publicity code which is clear that all local authority communications must be objective and even-handed. There is support and guidance for local authorities on how they should do this. As I said, councils also carry out non-statutory consultations to allow residents to shape local decisions and plans.

I absolutely agree with the noble Baroness, Lady Taylor of Stevenage, that this should not be a one-off; it works much better when local authorities have a good ongoing relationship and conversation with their communities. It is then much easier to deal with issues such as those my noble friend Lord Northbrook raised in Kensington and Chelsea, because it is a continuation of an ongoing conversation. I encourage all local authorities to look at how they can do that better. Greater involvement for local people can be only a good thing. We do not think it is for the Government to tell councils how to do it. Most councils know how to do it; they know what works best in their area and get on with it.

I agree with the noble Baronesses opposite that the concern over the requirement for all consultations to be carried out by third parties is that it would impose additional costs on local authorities and may encourage less consultation and engagement rather than more because they just cannot afford it. I therefore hope my noble friend will agree not to press his amendment.

[Lord Northbrook (Con)]

My Lords, I am most grateful to all noble Lords who participated in debates on these amendments. I particularly appreciated the offer of the noble Baroness, Lady Scott of Bybrook, to look at the way bids work to ensure better relationships with residents.

On Amendment 65, I appreciated the noble Baroness, Lady Taylor of Stevenage, talking about the costs of outside consultants. I was hoping that

“having the consultation materials and process submitted in draft to the main stakeholders for their review and comment in advance of the consultation”

would cover that point.

In the meantime, having thanked all noble Lords, I wish to withdraw my amendment.

Amendment 64 withdrawn.