Support for projects designed to breathe new life into Scottish town and city centres is to be extended.

Building on the Government's plan to reduce and for some companies to remove business rates, from April 1, towns around Scotland will be able to apply for a one-off grant to help launch their own Business Improvement Districts (BIDs).

A BID is an area of a town, city, commercial district or rural area, where local businesses vote to invest collectively in local improvements, services and projects for the benefit of the community.

Visiting a pilot project in Falkirk, one of six across Scotland, the Cabinet Secretary for Finance and Sustainable Growth said BIDs had a key role to play in the regeneration of town centres.

Cabinet Secretary John Swinney said: "Our town and city centres should be the beating heart of Scotland's economic revival - the drivers of economic growth both locally and nationally.

"This Government's plan for reducing and removing business rates will bring direct benefits to small businesses which are the lifeblood of our high streets. It is vital that this measure gains Parliamentary support to enhance the prospects for growth in our local towns.

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"Having seen how the six pilots have worked, including this project in Falkirk, and the enthusiasm among the business community, I believe BIDs can play an important and positive role across Scotland."

The origins of BIDs can be traced to 1960s Canada. Around 1,400 have now been established worldwide.

Over the two years 2006-08, the Scottish Government has provided support for the BID pilot programme, allocating around £1.1m to support the six BID pilots (in Bathgate, Clackmannanshire, Edinburgh, Falkirk, Glasgow and Inverness), to fund the BID Scotland Project Director and to provide marketing and guidance, including the website. The Scottish Government has also put in place the legislative framework necessary to underpin local BID proposals.

The pilot programme has allowed the six areas to develop their proposals and to demonstrate the benefits to be gained from BID projects. The six pilot schemes are due to hold ballots on whether to establish permanent BIDs in the coming weeks and months.

New BID developments have been proposed for Dunfermline and Alloa town centres, and there is considerable interest from other areas of Scotland.

Central support from the Scottish Government for the BIDs programme is set to continue in 2008-09 and beyond. In addition, from April 1, one-off Government support of up to £15,000 will be available, subject to the minimum criteria, as 'seedcorn' funding for each new BID project that comes forward.

These grants will be intended to act as a catalyst to enable partnership working and the development of realistic BID proposals that are likely to be attractive to local private and public sector stakeholders, including the local authority.

(GK)