More than 500 businesses and organisations in St Albans city centre will be balloted on the creation of a Business Improvement District (BID).

If given the go ahead, it is expected the BID would generate up to £500,000 to invest in the city every year.

St Albans City Centre Partnership (CCP), a group of private and public sector organisations, is behind the initiative to improve the commercial area in the city. 

It launched a campaign to create a BID earlier this year and submitted proposals to the council, asking for a ballot of businesses that will be affected.

The council agreed at a cabinet meeting on Thursday.

Shops, estate agents, law firms, cafes, restaurants, pubs, hotels and other enterprises are involved.

They will receive their ballot papers by post by mid-October and will need to return them by 5pm on Thursday, November 10.

The result will be announced the following day.

If approved, the BID is scheduled to start next April with businesses in the zone paying a levy of a proposed 1.8 per cent of their rateable value. 

Businesses with rateable values of less than £10,000 will be exempt from the charge.

If agreed, the BID will be run by a chair and several directors who will be supported by a small full-time staff. The levy will be collected by the Council on their behalf.

The BID would run for five years after which another ballot will need to be held for it to continue.

The ballot will cost around £5,000 and will be paid for by the council.