"It was one of the town's biggest injustices": Council scraps ballot for renewal of Rugby BID

Following a review of the renewal proposal submitted by the Business Improvement District (BID), known as ‘Rugby First’, Rugby Borough Council has found that the proposed business plan is non-compliant with the Business Improvement Districts (England) Regulations 2004.

Angela McDonnell, the driving force behind the Vote No to Rugby First BID campaign, said being charged three times more than the Government’s recommended fee was “one of the town centre’s biggest injustices”.

After making a formal complaint in December, The Insolvency Service opened a formal case and Rugby First is now being investigated.

Angela said: "Businesses are charged three times the Government recommended fee. How has this been allowed to happen over 20 years? Every town centre councillor over the last 20 years, hang your heads in shame. This is surely one of the town centre’s biggest injustices.”

She said the system was unfair against small town businesses and pubs.

After a three-month wait, Angela has now received the FOI (Freedom of Information) list for BID Levy payers.

She has been sharing the findings on her Facebook page.

Angela, who has been working with three other people on the findings, said: “Asda pays 1.92 per cent; Yum Yum World pays 5.2 per cent; The Black Swan Pub pays 5.65 per cent.

“The unfairness of the Rugby BID levy is now in black and white. We defy anyone to argue this is fair. How is this right?

"Rugby's small businesses deserve better. Rugby deserves better than empty streets. Because our town centre traders, independents, cafés, pubs and retailers deserve support not more financial pressure."

Angela found a pub in Rugby pays more than three times more than an equivalent pub in Durham.

“We're not against events or investment,” she said.

"But when a major city like Durham can deliver fantastic experiences while charging businesses a fraction of what we pay, it forces a question: why does Rugby have one of the highest BID levies in the country? With soaring costs everywhere, every pound counts. Do you think this is fair?

“With soaring costs everywhere, every pound counts."

Angela added: “Our fight for transparency took months and it has paid off. I’d like to thank the others who helped me and also thank you to Cllr Michael Moran.”

Rugby Borough Council has a legal duty to ensure BID proposals meet regulatory requirements.

A statement said: “Rugby Borough Council cannot proceed to a renewal vote, which had been due to take place between 27 January and 26 February 2026”.

‘Rugby First’ operates across the town centre and adds a levy on top of existing business rates charges, within the BID area to provide additional and enhanced services above those provided by the Council. ‘Rugby First’ was elected by businesses in 2021 for a five-year term to operate Rugby’s BID. This term is now ending and if it is to progress to another term, a further vote from business levy payers is needed in 2026.

All BID proposals must meet governance, transparency, and regulatory standards, Rugby Borough Council’s priority is to ensure the proposed business plan is compliant to protect Rugby’s business community and the town centre.

Due to the renewal vote not taking place, the BID will end and businesses will not be charged a BID levy from 1 April 2026 onwards. The current term of ‘Rugby First’ will continue until 31 March 2026 and existing arrangements will remain in place until that time.

Rugby Borough Council is committed to ensuring continuity of key town centre activity and has confirmed that funding for events and town centre initiatives will be maintained into the next financial year, at no additional cost to the taxpayer.

Dan Green, Returning Officer for Rugby Borough Council, 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.”

Rugby Borough Council welcomes continued engagement with businesses and partners to support the town centre and work collaboratively on future regeneration.

Town centre businesses with questions about the cancellation of the ballot can email Rugby Borough Council’s Economic Development team on [email protected].

A joint statement from the Leader of the Council Cllr Michael Moran and Cllr Jerry Roodhouse, Chair of the Rugby Borough Council 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."

We contacted Rugby BID for a comment.