BUSINESSES will, after all, be facing a higher than expected levy demand from the Dartmouth Business Improvement District. The town's BID team had said that new bills would be drawn up after incorrect invoices were sent out. But now in what many see as an astonishing U-turn, the BID says the original figures must stand and there will be no money-off, as was promised. In a statement issued this week, the BID said it had come to the decision after taking legal advice. BID director Francesca Johnson said that in order for the BID to deliver its promise of a firm business plan costing around £170,000 each year, it had to charge the higher rate levy. It is understood the BID could face the risk of a legal challenge if it fails to meet this commitment. But Colin Payne, of the Norton Park action group, believes legal battles may be pending anyway. 'The original lowest levy, for less than £10,000 rateable value, as set out in the Dartmouth BID Business Plan 2014-2019 brochure, was stated as £100 per annum,' he said. 'Those of us in that lower band have received invoices for £150 from South Hams Council on or about June 20, 2014. 'All those who voted in the ballot and who have premises within this band had given their consent to the BID on the basis of £100 per annum levy, known at the time they voted, and they are perfectly within their rights to only pay the £100. 'Those of us who knew nothing about the BID, were not consulted and were not given the chance to vote, and therefore have no contract with Dartmouth BID Ltd, are also within our rights under contract law not to pay anything at all against the original invoice which is voidable. 'Those in this category, particularly with holiday let premises at Norton Park, stand to gain little or no benefit from the Dartmouth BID and, in fact, we will incur losses if legal action is taken against us.' Mr Payne said he believed the reversal in assurances – made verbally by manager Phil Scoble, who announced last week his decision to quit for family reasons, BID promoter Paul Reach and chairman Nigel Way – would have the effect of 'arousing more anger and anti-feeling' towards the Dartmouth BID among the lower rate band businesses. 'It will make those, who are already determined to withhold payment of the levy until matters have been resolved, even more resolute,' he said. The BID levy, which is required in Government regulations to be based on the rateable value of the business premises, is a fixed charge for five years. Inaccurate figures that were drawn up by the BID's advisers Mosaic were sent out to businesses after the BID board, then under former chairman Paul Reach, failed to spot the errors. It was only after the collecting agents, South Hams Council, spotted the irregularities that the error was picked up. Mr Reach, who has for different reasons resigned from the BID board, said the original text version of the levy figures was correct in the business plan but some figures changed when converted to the graphic version and unfortunately nobody noticed. In a statement issued this week, the BID board said: 'Dartmouth's Business Improvement District will have to charge local businesses the originally planned levy after advice from the Mosaic Partnership. 'Following a misprint of the two lowest bands of the levy in the business plan used during the campaign for a Business Improvement District in the town, the BID board made the decision to charge the printed levies – £100 and £250 – not the higher ones on which the rest of the business plan was based including the project costs and the financial forecasts. 'South Hams Council has replied saying that because it was instructed by the BID to issue invoices based on figures using the higher levies, the council has, therefore, correctly complied with regulations. 'The BID board consequently sought further advice from the Mosaic Partnership, who backed up this position as the only legally sound route forward. 'The BID board has, therefore, decided the only course of action open to the BID is to follow the advice given and this means anyone with a £150 or £300 bill will have to pay the full amount, not the reduced levy previously announced.' BID chairman Nigel Way said he was sorry about the 'confusion with the communications' but it was important that the proper advice is followed. And he highlighted the good work of the BID so far and the benefits levy payers will enjoy over the five years of the BID. 'We made our original decision based on what we thought was correct and proper at the time but it has become clear that this is not the case,' he said. 'As a board, we take responsibility for this and have to now move on and make sure we do all we can to make the Dartmouth BID a success.' Dartmouth Business Forum chairman Peter Bailey called for better communication and clarity in the future. He said: 'I have spent time talking to both the BID board and active forum members about the current situation with levy invoices. 'There is no doubt that the decision has been a difficult one for the BID and South Hams Council to make, however feedback I have received from businesses has been that positive steps forward would be the thing that is most appreciated now. 'One member has raised the point that smaller levy payers benefit from much larger contributions of bigger businesses which is worth considering in the scheme of things. 'Concerns from other members seem to stem from the perceived lack of communication or clarity from the BID team on the topic. 'The actual amount is certainly important, particularly for businesses with already high overheads. 'What has been mentioned several times by members of the forum, however, is that they would simply like a clear explanation of the amount to be paid, where it will go and when it is due. 'I think, with this information, levy payers will be able to make better informed decisions and be confident of the destination and potential benefits of their contribution.' Mr Way said he firmly believed that the BID would be a big success. 'Our marketing campaign is about to go live, our investment in the TIC Discover Dartmouth website – rebranded as Dart moutheverytime.co.uk – will launch at the same time,' he said. 'BID levy payers get a free listing on the Dartmouth Everytime site, or money off their TIC subscription. We are also readying a number of business cost-reduction schemes that will go live in the next few months. 'On top of this, we are putting together a series of workshops in business skills that will launch in September. 'The first three workshops will look at using the internet to boost your business – building websites, making sure they are visible online and selling through your website. We are looking to hold a workshop a month for the whole five years of the BID. 'These are only the start of the schemes the BID levy makes possible. So we ask people to look beyond the issues we have faced in our early days and see the benefits the BID will bring over the next five years. As we go on, we are absolutely certain that people will see a return for whatever they are being asked to pay.' Expanding on why he was standing down from the BID board, Mr Reach said: 'I initially decided to stay on the board. However, on reflection, I feel that having sold my business, and handed on the chair of the Dartmouth Business Forum, it is inappropriate for me to continue to represent the businesses of Dartmouth. 'So, I have decided to make way for someone more actively involved in Dartmouth retail day to day.' Mr Reach played a leading role in both developing the BID's five-year business plan and in gaining the vital 'yes' vote for the project to be set up. He said he would urge more business people in Dartmouth to seek election to the BID board in order to strengthen the management team, which must be elected each year.