In the first case of its kind, a pub landlord is legally challenging the imposition on him of a BID levy.
Jimmy McGrath, landlord of the William IV pub in Hampstead, has refused to pay the levy since the BID was created following a local referendum in 2016. He owes some £900.
Barristers chambers Six Pump Court said Robert Griffiths QC has been instructed by Mr McGrath in a case that, “raises important issues with regards to the use of local authority powers by private bodies”.
The London Borough of Camden is not directly responsible for the levy but collects it together with business rates.
Mr McGrath has also said he was not served with a proper notice for the levy.
The case has been adjourned by magistrates until 13 December, with a full hearing expected in the new year.
BIDs are areas in which a levy is charged on all business ratepayers on top of the business rates bill, with the money raised normally devoted to projects such as public realm improvements, extra security and cleansing.
They can be established only by a positive vote among affected businesses.
Hampstead BID has said it will invest £1.2m over five years “to benefit local businesses and enhance the general trading environment”.