MORE than 1,000 businesses in York city centre are being consulted over plans to raise almost £4.4 million over the next five years to improve the city's economic environment.

Stakeholders were invited yesterday to the official launch of the York Business Improvement District (BID) consultation phase, which will see 1,300 business within the inner ring road asked for their views on the proposals over the coming months.

If approved the BID scheme will raise in the region of £878,000 annually through imposing a levy on businesses, equating to one of per cent of the rateable value of their business.

The money will then spent on improvement schemes, jointly agreed upon by business owners within the BID.

Adam Sinclair, chairman of City Team York, which is leading the BID proposals, and managing director of Mulberry Hall, said: "York is largely thriving, but but it does exist in an increasingly competitive market place, and is facing increasing vulnerabilities.

"Alongside that there is a diminishing public purse. Gone are the days when we can ask the council to fund endless projects.

"We have got one chance in a generation to do this for York. I don't think we will get another round of funding to create this launch. We need to get this off the ground and up and running now."

The BID area covers all rate paying business within the inner ring road, as well as some areas facing it, including Foss Islands, the Barbican and the train station.

The current proposals are to use funds raised to address four areas; appearance and environment, events and festivals, safety, and business support.

Steve Hughes, who is leading the consultation, said: "Feedback is really important for the BID to work as finding out about issues facing businesses in the city centre, and addressing them is what it's all about.

"It's a way of businesses working together to get the improvements they want to see. It's about enabling the businesses to take ownership of the area in which they operate.

"We cannot afford to stand still. If we don't do this now, its difficult to see where the money is going to come from to invest in the city centre."

Delegates at the event heard there are more than 200 BIDs currently in operation in the UK including northern cities such as Leeds, Newcastle, Manchester, and Sheffield.

The York proposals have already received backing from HSBC, Hiscox, Boots, and Aviva, as well as independent companies, with Neil Settersfield, manager of York's Fenwick, and Sophie Jewett, managing director of York Cocoa House, both speaking at the event to add their support.

Consultation documents need to be returned by May 31, after which a business plan for the BID company will be created.

A postal ballot will then be launched in November, with a 51 per cent vote in favour needed before a not-for-profit BID company can be created in April 2016.