Proposals to develop a Business Improvement District (BID) for Tonypandy will progress to the next stage following Cabinet’s approval. If agreed, a BID would establish a funding model to support investment and development in the town, led by the input of local businesses.
A BID is an area within which traders, linked to their business rates, pay into a levy that acts as a shared fund to be used for projects in the local town centre – while also drawing on other funding avenues to support this activity. There are 14 BIDs in Wales, three of which are successfully operating in Rhondda Cynon Taf towns – Your Pontypridd, Our Aberdare, and Love Treorchy.
While Tonypandy, like most town centres, was impacted by the pandemic and the challenging economic climate, it has opportunities for a sustainable future with the right investment – which could be supported by establishing a BID.
A report to Cabinet on Wednesday, July 17, provided details of a proposed Tonypandy BID, and sought approval to apply for Welsh Government funding, via the Transforming Towns Fund, to develop the process of setting it up. This includes initial activity such as the development, campaign and ballot stages.
BID ballot stages are usually managed by councils – and would be successful if more than 50% of voting businesses support the BID, and if more than 50% of the overall rateable value is achieved. The BID would be run by private sector representatives, operating for up to five years which can then be repeated. The report adds that Tonypandy would benefit from developing a similar model to Treorchy with the amount it could levy.
A feasibility study for a Tonypandy BID took place in late 2023, with interviews across 56 businesses in the core retail area. In total, 68% of the participants believed the proposal should progress to the ballot stage, while 22% said they would be interested in taking on a leadership role in the BID. The businesses put forward suggestions for what a potential BID programme could focus on – from enhancing the CCTV provision to implementing a street warden service, lobbying of bus services, and expanding the town’s events programme.
Welsh Government has also recognised the positive contribution that BIDs can make to establishing vibrant town centres, and has invited funding applications to its Transforming Towns Fund for initial development stages. Any successful bid to the Transforming Towns Fund would require 25% match funding from the Council – this would be met using existing resources.
The timescale put forward is to test the proposed ballot is within the 2024/25 financial year and, if successful, the BID would then operate from April 2025.
Councillor Mark Norris, Rhondda Cynon Taf Council’s Cabinet Member for Development and Prosperity, said: “Business Improvement Districts are recognised mechanisms to bring local businesses together with the common aim of improving retail areas and enhancing their sustainability. We’ve seen how effective they can be across the three successful BIDs that currently operate within Rhondda Cynon Taf – in Pontypridd, Aberdare and Treorchy.
“Informed by a feasibility study with 56 businesses, officers consider there is a local appetite to pursue a potential Tonypandy BID, and that a BID would be viable and beneficial for the area. The town has a growing and active Chamber of Trade with ambitions for more financing and funding, and it is considered that a BID could establish a model for future investment, development and growth.
“On Wednesday, Cabinet Members supported moving onto the next stage of the process – to further develop the BID and to submit an application to the Transforming Towns Fund to support the initial development stages of the process. If a funding bid is successful, a procurement exercise would then be progressed to appoint consultants to convene a steering group, ballot, and subsequent stages of the development process. The Council will keep residents informed about the progress of the key stages in due course.”
