A CASH flow loan of £50,000 from City of York Council is due to be rubber stamped next week in the latest stage of York adopting a Business Improvement District.

Businesses in York’s city centre voted in November last year in favour of adopting a Business Improvement District (BID), in a move which will see £80,000 a year raised through a one per cent levy on their business rates.

The council's economic development and transport policy and scrutiny committee agreed on Tuesday this week a request from the BID board for a cash flow loan of £50,000, which is set to be reimbursed by summer this year.

The committee also approved recommendations that formal council representation of the BID board is made by Cllr Chris Steward and Cllr Keith Aspden.

The council's Executive is now set to give the final green light for loan when it meets on Thursday, as well as approving a draft Memorandum of Understanding (MoU) and operating agreement between the authority and BID board, which include a baseline services agreement which the council agrees to meet.

The business-led BID will take decisions on how to invest in the city centre and will focus on areas such as improving the cleanliness of the city centre, tackling anti-social behaviour and supporting businesses.

The report to Executive also outlines the council's annual contribution, via levy, of around £28,000 beginning in the 2016/17 financial year. The BID will however reimburse the administrative cost of levy collection up to £25,000.

Councillor Chris Steward, leader of City of York Council said: "The York BID looks to increase investment and a focus on key areas to improve the city centre and as a council we are happy to support this.

"This report looks to support the creation of the Business Improvement District and we are keen to work with the business-led team to make the city centre a better place to trade and visit and make the most of York’s historic city centre."

Cllr Keith Aspden, deputy leader of City of York Council with responsibility for Economic Development added: "It was pleasing to see businesses vote to support the Business Improvement District and we are looking forward to working with them to ensure that it is a success.

"We know that Business Improvement Districts can bring significant benefits, not just to our businesses but to the wider local community and it will also help ensure that everyone enjoys York’s unique heritage."