An Elgin businessman is refusing to pay into a mandatory town centre improvement scheme after it emerged supermarket giant Tesco was exempt.
William Watson Funeral Services manager Mark Watson said it was unfair that the retail chain had escaped the Business Improvement District Scheme (BID) levy.
Under the initiative, traders contribute to a central cash pot which is used to attract more people into the town centre.
BID scheme chairman David Urquhart said he had had a lot of positive responses about the scheme, but acknowledged that there were some objections.
Almost 450 firms in Elgin were eligible to cast a vote on the proposed establishment of the BID scheme.
The results of the ballot in December revealed 45% had voted, with 75% of those giving their backing to the project.
The City of Elgin Company was formed and the group is leading the development of Elgin BID over the next five years.
Mr Watson yesterday said Tesco’s refusal to pay a levy to the BID scheme would mean a loss of £100,000 to Elgin over that period of time.
He added: “I am very angry with the way that the BID managers have taken Tesco out of the scheme. Their rateable value would be £1.6 million, which means they would have had to pay £21,000 every year. Elgin has lost £100,000 over the next five years because they’ve taken Tesco out of it.”
The funeral director wrote to Elgin BID manager Jacqui Taylor.
Her letter of response to Mr Watson reveals Tesco does not support BIDS projects across the UK.
She said the company had promised to support the scheme with an annual contribution, however.
The chief executive of Moray Chamber of Commerce, Jim Johnson, said he supported the BID scheme but could understand the trader’s frustration.
He added: “I find it hard to accept that the reason that most BID schemes start up is because the town centre is being damaged by out-of-town retailers, and yet the people who locate out of town who have contributed to damaging the town centre can stipulate that they’re not contributing to the BID fund. That really annoys people, and that’s something I can appreciate.”
BID chairman David Urquhart insisted the vision of the Elgin BID business plan would inject new life into Elgin city centre.
He added: “We have been inundated with positive responses from businesses, visitors and locals alike. Questions have been raised regarding the BID levy by some individuals and we are in discussions with them to address their concerns.”
Tesco made no comment last night.
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