Traders in Lincolnshire have set up a group to take their local council to court over the formation of a Business Improvement District (BID).

Spalding BID was set up in 2024 after a ballot was decided by one vote. However, a number of business owners are refusing to pay the BID levy, despite being ordered to by magistrates, claiming the vote was invalid because not everyone received a ballot paper.

Physiotherapist Paul Parkin, who is part of Spalding Traders Against BID, said the levy was one more cost that businesses were struggling to afford.

South Holland District Council said it had "no concerns about the process" and that it had been managed in line with national guidance and regulations.

The BID plans to use the money raised from the levy to fund projects to improve the town centre and attract more shoppers to the town.

Spalding BID manager Sarah Fletcher said 2026 would be a "massive year" for the town centre, with events such as Spalding in Bloom, Big Tidy Weeks and a food trail, as well as a new digital platform and app that will allow businesses to compete with online shopping.

"We're also going to do a lot of work around welcoming and safety, and people's perceptions of the town", she added.

At a hearing at Boston Magistrates' Court on 30 June, 45 businesses that had failed to pay were found liable for the charge.

Mr Parkin was one of those. He said he was appealing against the ruling, and believes the council failed to comply with the legal requirements to establish the BID.

Spalding Traders Against BID has started a crowdfunding page to help cover legal costs.

"We're hoping local people will support us, because the town is losing businesses," he said.

"When we put in an appeal it's going to cost quite a bit of money."

Julian Wheeler, who runs a photography studio in the town and is also a member of the action group, said: "We intend to take South Holland District Council to court and seek a judicial review.

"In the meantime, we do want to work with the BID board, but it has to be of benefit to businesses.

"The BID has been operating for 13 months and nothing seems to have been done in Spalding town centre."

A council spokesperson added: "We would encourage all eligible businesses to pay the statutory levy as soon as possible to avoid further time and expenditure to those involved, and to allow the BID to undertake its planned activities and initiatives."

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Spalding traders fighting South Holland District Council over BID