The first seven weeks of the new coalition government has confirmed what many of us already suspected – if public sector cash is king, the king has most certainly left the building.
As countless head teachers, members of the armed forces and even City bankers will tell you, the present administration is trying to pick up every penny that isn’t nailed down and Mr Osborne is apparently revelling in a fine impression of Ebenezer Scrooge.
Whether the government’s response to a crippling level of debt inherited by its predecessors is a measured necessity or reactionary folly is an argument for another day, but what we do know for certain is that austerity is now an unwelcome reality and one that we as a business community must deal with robustly.
Liverpool has enjoyed impressive levels of physical, economic and social change over the past decade and, while the private sector must be praised for its collaboration and vision, we also cannot hide from the fact that a fair portion of that success has been courtesy of significant funding from central and European government and continued growth in public sector investment.
If we are to realise further growth and capitalise on the city’s burgeoning international reputation, we must ensure that any vacuum left by government downsizing is filled by substantial, enduring investment from private enterprise.
The commercial district has been a key foundation of the city’s growth curve and is certainly not alone in the need to protect its long term future. The clearest solution to lasting prosperity in the commercial district is an application for Business Improvement District (BID) status, something of which we at Downtown are fully in support.
BID status brings with it not only substantial funding for maintenance and improvements – somewhere in excess of £600,000 per year – but also a collective spirit, building upon the foundations of much of Liverpool CDP’s work and invariably proving a vital component for future expansion.
More than 800 landlords and tenants will be balloted on the proposal, which will ask them to accept a levy equivalent to one per cent of business rates. Their time to stand up and be counted will come at a final ballot in spring 2011, before which time my fellow BID ambassadors and I will spend as much time as necessary persuading members of the benefits of BID status.
One per cent may sound a substantial ask in difficult economic times, but it must be considered in the context of the wider picture. If businesses wish to operate in a vibrant, attractive commercial location, then the funding to make that environment a reality must be sourced from somewhere. We have already seen the government freeze council tax levies, so immediately we see a dangerous trend developing toward under-investment and possible stagnation.
For many members who have actively participated in the work of the partnership up to this point, the levy would actually represent a reduction on their voluntary spend, while for the remainder of businesses in the district, the application for BID status represents a real opportunity to become involved and effect positive change to the benefit of themselves and their neighbouring businesses.
As austerity measures take their grip across Europe, we must pull together tighter than ever before to ensure that Liverpool and the commercial district remain ahead of the game.