AN application for £7,000 to support the creation of a 'Business Improvement District' (BID) in Tavistock was last week given the thumbs down by the town council.

The request for funds had been submitted by Tavistock Chamber of Commerce and was approved by the council's finance committee.

But members at last week's full council meeting overturned the decision.

Cllr Brian Trew said in principle the BID was a 'really good idea for retail businesses' in Tavistock, but he was uncomfortable about the issue on several grounds.

He said even the smallest organisation approaching the council for grants was asked to provide audited accounts for the current year.

'We asked the chamber for them — they gave us last year's accounts. They said they would provide us with this year's accounts before this meeting — they haven't,' said Cllr Trew.

He said the council had already given the chamber £18,000 during the last 18 months — if another £7,000 was granted to it, the total figure would be far greater than grants given to any other body.

Cllr Trew said the chamber could also provide no breakdown on how the money for the BID would be spent.

'This could fail at the first jump. If it does, there will be a huge amount of money in their pot, some of it our £7,000. I asked what would happen if the BID failed and there was money in the pot — they couldn't give me an answer,' said Cllr Trew, who proposed the council reject the application until more detailed information and current accounts were supplied.

Cllr Ted Sherrell said: 'I think it would not hurt to hold off for the time being, before we commit a sizeable amount of hard-pressed public money to this.'

Cllr Michael Harper was concerned that the chamber had been 'vague' when asked direct questions about how the requested money was to be spent — and the lack of current accounts.

'The information given is frankly, a shambles,' said Cllr Harper, who suggested that perhaps a staged payment could be made to the chamber.

Cllr Robin Pike said in the current economic climate, Tavistock desperately needed to boost business, and that the BID system was working very successfully in Plymouth.

'If it helps to save the town, we have to take the chance,' he said.

Cllr Anne Johnson said a BID was a way of making sure multi-national companies contributed to projects that could boost the commercial centre of town.

She believed the start-up funds the chamber was amassing through grants — currently £32,650 of the £43,000 target — was to consult with businesses to make sure there was majority support for the BID scheme.

The council voted to back Cllr Trew's proposal — the application will be re-considered when up to date accounts and more detailed information has been submitted.

Chamber chairman Nigel Eadie said following a long meeting with town councillors, detailed examination of the accounts, including a draft copy of the accounts 2009/2010 and a recommendation from the finance committee, he was very, very surprised by the decision.

He said: 'If we do have any more information I am happy to supply it but we have gone through it in almost microscopic detail already.

'Establishing Tavistock as a BID is the biggest single opportunity the town has seen in the last two decades. We think it is really, really important the town council gets behind this.'