John Lewis chief: Give our city centre new life

John Lewis boss Andrew Murphy argues that businesses must vote in favour of Business Improvement District status as a means of kick-starting the regeneration of the city centre.

FROM April 11, hundreds of Edinburgh businesses will be given the opportunity to vote for a proposal that will finally allow the city centre to achieve its true potential.

On that date, the ballot on the Essential Edinburgh Business Improvement District (BID) begins, running until May 23.

A BID is an arrangement under which businesses plan and deliver additional improvements to benefit their own activities in their local area. These services and projects are in addition to existing agreed and benchmarked services operated by the local council and the police.

It is important that every business which qualifies to vote does so, and that they cast their votes in favour. Already, three Scottish BIDs have been created – Inverness, Clackmannanshire and Bathgate – while Glasgow and Aberdeen have BIDs in development. It is crucial to the future competitiveness of our city centre that we back this exciting development opportunity.

Edinburgh is a wonderful city which does many things very well, and its citizens enjoy an almost unparalleled quality of life. But can anyone put hand on heart and say that the city's centre has kept pace with the quality of progress and development of the city as a whole? Would any of us claim that the city is making the best use of its principal shopping streets which are potentially priceless assets?

In developing and progressing the BID, the Essential Edinburgh team has visited almost 300 of the 570 businesses which qualify to vote within the city centre BID area.

Research has been carried out along with hundreds of hours of "face-to-face" dialogue throughout the process. From this, it is clear that city centre businesses are keen to tackle the following: crime and antisocial behaviour, increasing the environmental attractiveness of the area, improving transport links to the area, and promoting the city centre.

If businesses do vote in favour, then services to be delivered will fall into five categories, as outlined below.

There is ample evidence from all over the world that BIDs work. For example, London's West End BID has seen total crime down 12 per cent, response to shop thefts increased by 11 per cent with 200 more shoplifters arrested year on year. In Times Square, New York, crime has decreased 60 per cent. In Philadelphia, 75 per cent of visitors say the area is safer and cleaner. In El Cajon, California, crime fell by 12 per cent, 42 new businesses opened up and property values increased by 20 per cent.

Businesses in areas in which BIDs operate see the benefits for themselves. In the heart of London (around Piccadilly) a BID was started up in 2004. Sixty-two per cent of eligible businesses voted, and 71 per cent backed the BID. A renewal vote in 2007 saw the vote in favour increase a whopping 15 per cent to 86 per cent. That represents a lot of persuaded voters.

Within Edinburgh city centre BID area (which extends from Princes Street to George Street, and from the St James Centre to South Charlotte Street) the businesses fall into three categories – shops, which make up 56 pe cent of the businesses, leisure and hospitality (30 per cent), and offices (14 per cent).

ONLY those businesses on the valuation roll liable for business rates for properties with a rateable value of £25,000 or more will be asked to vote, and only they will be asked to pay the levy of one per cent of their rateable value (shopping centre tenants without a direct street entrance will be levied 0.5 per cent of their rateable value).

Another major benefit found in other areas is that a BID allows businesses to have a more positive relationship with the public sector, with local authorities more likely to be responsive to the needs of business. It should again be stressed that BID services are in addition to those already offered by local authorities and the police.

Our city centre needs extra investment and genuinely focused attention and advocacy if it is to maximise its potential as one of the UK's very best retail, commercial and leisure locations. A successful BID creates a more attractive environment for investors because, ultimately, if a BID is about anything it is about growing the profitability of the businesses within it.

I believe the private sector can and should help provide this attention, advocacy and focus. Delivering a vote in favour of this BID will drive significant benefits for the businesses of the city centre, and for all of the citizens who live, work and play within its boundaries.

• Andrew Murphy is the managing director of John Lewis Edinburgh and Aberdeen