THE COMPANY which operates Rugby’s Business Improvement District (BID) will cease to do so in April after Rugby Borough Council (RBC) found its business plan did not comply with regulations.
The council found the renewal proposal submitted by Rugby First, which operates the town’s Business Improvement District (BID), was non-compliant with the Business Improvement Districts (England) Regulations 2004.
A ballot of businesses on whether to renew Rugby First’s current five-year term, which was due to take place before February 26, will no longer take place.
Town centre businesses will no longer be charged a BID levy – which goes towards additional and enhanced services beyond those provided by the council – after Rugby First’s current term ends on March 31.
The council said it had a legal duty to ensure BID proposals met governance, transparency, and regulatory standards to protect Rugby’s business community and the town centre.
RBC Returning Officer Dan Green said: “Following an internal review and having sought external, independent advice, it has been concluded that Rugby First’s proposals for BID renewal are not compliant with the Business Improvement Districts (England) Regulations 2004. Therefore, we cannot proceed to ballot.
“We recognise the role Rugby First has played in the town centre and are mindful of the staff affected by this decision. We are committed to working with town centre businesses and with residents to understand what this means for the future of Rugby town centre.”
An RBC spokesperson added the council was committed to ensuring continuity of key town centre activity, confirming that funding for events and town centre initiatives would be maintained into the next financial year at no extra cost to the taxpayer.
In a joint statement, RBC leader Coun Michael Moran and Coun Jerry Roodhouse, the chair of the council’s Town Centre Working Group, said: “Since the current administration took office in June 2024, the council has held regular meetings with all parties involved in the BID process to ensure the positions and concerns of everyone are understood and included.
“As one of the first Business Improvement Districts in the UK, Rugby First has played a valuable role in the life of the town centre. However, a great deal of time has passed since it was established along with the expectations of BIDs having changed, and it is the council’s role to review future plans and check they are compliant with the Business Improvement Districts (England) Regulations 2004.
“This decision will not affect essential town centre services, including the provision of CCTV, which is provided by a separate council contract. The safety and wellbeing of our businesses and residents remains a priority, as does the cleanliness of our town and important community events, which will be maintained at no additional cost to local taxpayers.
“We appreciate that the staff of Rugby First, many of whom have been with the BID for a long period of time, will be facing a period of uncertainty, and we are working to ensure clarity is provided as future arrangements are considered.
“It is Rugby Borough Council’s priority to maintain the high standards of our town centre, and we will continue working closely with businesses on our future together.”
Town centre businesses with questions about the cancellation of the ballot can email Rugby Borough Council’s Economic Development team at [email protected].
