Council chiefs in Carmarthenshire have backed the principle of a new five-year term for a controversial business improvement scheme [Carmarthen BID] whose directors are resigning.

Carmarthen BID (business improvement district) was set up five years ago and involves eligible businesses in the town paying a small percentage of their rateable value on top of business rates on an annual basis.

The money raised is spent by the BID company with the aim of improving the town centre and encouraging more footfall.

The group’s board of directors announced last month they were resigning, effective from March 31, citing what they claimed was “unwarranted harassment and abuse” from a minority of people. Their statement added that “in the spirit of democracy” a new ballot was under way for a new five-year term. The BID manager has also resigned.

Some traders have claimed their input wasn’t sought and have called for more transparency about BID’s expenditure. The BID board said it felt significant strides has been made over the previous 18 months transforming its and the town’s perception.

A spokesperson for Carmarthen BID said its accounts were made available via Companies House and that it had engaged with businesses.

BID ballots are managed by Carmarthenshire Council, which also collects the levy. Cabinet members have agreed to manage and oversee the new ballot while also supporting the BID principle. But they decided not to consider the appointment of a member representative to serve on the BID board.

Speaking at the cabinet meeting, Cllr Hazel Evans, who has the regeneration portfolio, said a BID scheme in Llanelli and other parts of Wales worked well. She added the council didn’t have a board representative on the Llanelli BID group, called Ymlaen Llanelli.

Cllr Alun Lenny, cabinet member for resources and ward member for Carmarthen Town North and South, said the history of the town’s BID scheme had been “very stormy at times” over the past five years. But he added that significant funding had been raised to improve the town’s appearance and hold activities.

Council leader Darren Price stressed cabinet was only considering the principle of the BID and that further discussions and decisions would need to made by the BID group.

If it were to go ahead for a further five years, with approval from full council, it’s expected that just over £719,000 would be raised via the levy. The ballot closes on February 27.

Cllr Gareth John, who used to be cabinet member for regeneration and also represents Carmarthen Town North and South, told the Local Democracy Reporting Service that he had been very aware of “strong views” from the outset of the BID scheme.

“As a concept, if it’s run by the right people and businesses work together, it has the potential to be very successful,” he said. “The principle is sound.”

Cllr John said former council leader Emlyn Dole had served as the authority’s representative on Carmarthen BID but he lost his seat in the 2022 council elections. Cllr John said he had not wished to serve on the BID board as it was a private company. He said he and the council had attended BID’s annual general meetings.

Cllr John said he felt Carmarthen BID ought to have done better although the Covid pandemic was far from helpful. Transparency, he said, was very important. He added: “There’s been a breakdown of relationships, of trust, and there has been some awful abuse flying around.”