COMPANIES in the region’s tourism capital have voted in favour of creating a formal Business Improvement District.

More than three-quarters of York businesses which took part in a month-long ballot have agreed to pay a levy on their business rates, the equivalent of one per cent of their rateable value, to improve business conditions in the area.

There are now more than 200 BIDs across the UK, and for York specifically the move will raise £800,000 a year over the next five years from around 1,070 businesses within the district, which is largely within the inner ring road, and those businesses that face it.

BID project manager Steve Hughes said: "We have spent months talking to businesses from all sectors across the city.

"This is the culmination of months of hard work by City Team York and businesses which believe the city centre needs to improve to remain competitive.

"We want to create the city centre York needs and deserves.”

The chairman of the York Retail Forum, Frank Wood said: “This is a fantastic result for York. Let's get on with it and let's prove it works."

City council leader Chris Steward said: “We know this will bring many benefits to improving the quality of our city centre.”

A not-for-profit BID company will now be formed to carry out a wide range of improvements and services from April next year.