A PENARTH trader has slammed proposals for a Business Improvement District and warned a two per cent tax could threaten small business.

Nick Osbourne, who owns Wasons on Windsor Road, has also questioned the decision to cap the levy on national non-domestic rates at £5,000 for Tesco's at Penarth Marina.

The Vale Council's cabinet recently gave its backing to a ballot being held, at a cost of up to £5,000, into whether enough traders supported the Penarth Business Improvement District (BID) application.

For the BID ballot to be approved more than 50 per cent of votes cast must be in favour and a 'yes' vote must represent more than 50 per cent of the aggregate rates of value of votes cast.

Mr Osbourne, who has been trading in the town for more than 40 years, said that business could struggle to pay the two per cent levy above national non domestic rates (NNDR) that could raise up to £67,000 a year.

"What concerns me is if there were only 10 people voting for and four people against.

"It will be the larger shops in town that will suffer. I already pay £3,500 a month in rates."

He also questioned the supermarket Tesco having its levy capped at £5,000 and said it was “unfair” to the town.

"We will be funding the lion’s share of it," he said.

"I have spoken to a number of businesses in Penarth and many of them are not aware of this going ahead."

He added that although the levy could raise more than £60,000, this would have to be funded by businesses themselves and this cost could be passed on to the consumer.

He also questioned where the money would be spent, casting doubt on whether £60,000 could fund more parking spaces as he believed the creation of 15 parking spaces on Arcot Street cost in the region of £300,000.

"What could they spend the money on to improve my turnover? Other than putting down flowers and advertising I can't think what they would do with £60,000.”

He added: "I'm not sure we would get value for money at the end of the day. People from Penarth are already paying the precept to the town council, and now they are paying for this advertising campaign."

All business and charities in premises that have a non-domestic rateable value of in excess of £5,000 will pay the levy, while Tesco at Penarth Marina will pay a total of £5,000

Robert Callaghan, the Penarth BID manager, said that businesses would be paying around £5 a week and the money raised would be used to boost trade in the town centre.

“We are trying to think of projects to increase footfall in local businesses,” he said.

He added that ideas included increased signage in the town centre and an improved events programmes, as well as looking at issues like parking.

“At the moment businesses can go to the Vale Council and say parking is an issue, but they can’t say the alternatives,” he said.

“We aren’t going to be able to build a multi-storey car park or buy a plot of land, and as an individual a business can do very little, but this way they can work together to find a solution.

“This BID would help shape what decisions are made and can attract public sector funding.”

He added that Penarth BID had negotiated with Tesco’s at Terra Nova Way to have its levy capped at £5,000 as it was out of town, and the money raised from its funding would go towards improvements in the town centre.

He added that the ballot was likely to be held in February or March next year, and that all local businesses would be given the chance to vote about whether they supported the BID application or not.