VIDEO: Shop owners 'forced' to fund Wolverhampton business plan

Plans for a Business Improvement District (BID) plan in Wolverhampton were passed last year, meaning hundreds of companies would have to pay extra tax to raise more than £3 million for improvements.

However, a group of shop owners on Salop Street, near the city's outdoor market, say they feel 'cheated' due to a lack of input in the decision and now believe they are being held ransom to make payments for something they didn't sign up to.

All companies in the city centre are obliged to contribute to the scheme after the plans were passed, with almost 90 per cent of businesses in the centre voting in favour of bringing it in.

Mike Brooks, who owns musical instrument shop One Way Music, received a notice asking him to pay £150 towards the charges and now faces having to pay £450 for something he didn't want.

He said: "None of the businesses on this street voted yes or no to this and we have had no indication on how the money will help us.

"We have seen work taking place in other parts of the city but around here it is a ghost town and we haven't heard anything about how this money can help us.

"I have now been told I could be taken to court because I haven't paid for something I didn't want.

"I didn't vote for this, I didn't ask for it, yet I am being told I have to pay.

"It just feels wrong, life is difficult for small businesses like us and we don't deserve to be treated like this.

"If we were told how this would improve things for businesses in the area or given plans I would happily pay."

His feelings were echoed by other shop owners, including Patrick Baker, who runs the Capital Appliance Centre.

He also believes shop owners on the street were not properly made aware of the opportunity to vote whether they wanted to bring the BID in or not and claims he 'doesn't know' where his money will go.

He said: "This is the first I have heard of it, at first I thought it was a scam.

"We haven't been told where this money will go, how will it help us?"

John Hancox, who owns clothing store The Red House, said he doesn't intend to pay his contribution but fears he may have to.

He said: "This will be of no benefit to us and there has been no suggestion that there are any plans in place to improve this part of the city centre.

"I don't intend to pay it but I may well have to to avoid larger costs later on."

Cherry Shine, director at Wolverhampton BID, said: "Last year we had a year long consultation process where we engaged with all of the businesses in the city centre.

"Unfortunately, some businesses got more involved than others in that process and the way BIDs come into force in accordance with the regulations is that there is a ballot that is held and run independently and businesses are asked to vote.

"If the majority of businesses that vote, vote in support, it goes ahead.

"Unfortunately there will be businesses that either don't vote or support it but because the majority of businesses felt it was a real opportunity to make a difference the majority of businesses voted yes and this is why it is in place.

"It is a fair system."

She added: "If they don't pay, in the legislation it does set out that we have the same rights as the business rates to collect the levy and the process is the same."

Wolverhampton was the first part of the Black Country to incorporate a BID plan, joining more than 180 which have been set up in the UK since 2005.

Currently six BIDs operate within Birmingham and there is also schemes in Manchester, Coventry, Leamington Spa and Nottingham.