A vision to promote retail and hospitality firms in the areas around Ipswich has faced opposition over whether it will benefit the businesses it would serve.
The plans for the new business group Explore Suffolk came before Ipswich Borough Council's executive committee on Tuesday.
Members voted unanimously to abstain from making a decision with a number of members saying it should be up to the businesses.
It would be funded by companies in the area through a levy - and would be operated by Locus, the company behind Ipswich Central.
It would extend from Felixstowe to Flatford in the south - including the Shotley Peninsula - and as far as Hintlesham, Baylham and Martlesham.
Ipswich Borough Council leader Cllr Neil MacDonald told the meeting: “It is up to the businesses to make up their mind about it.
“I think it would be good, but it really is up to them, they have to make sure they are getting value for money.”
The levy would amount to 1.8 per cent, to be capped at £10,000, for any business within the DBID area with a rateable value above £24,500 and would be paid on top of the company’s business rates.
However, businesses that are already paying a levy as part of another BID are exempt from paying an additional one.
A report presented to the council stated an abstention could be seen as opposition to the BID due to the council’s approval of prior BIDs and should, therefore, be followed with clear communication regarding the reasoning.
The money collected by the council would then act as a reinvestment into the local economy.
Cllr Ian Fisher, who opposes the BID but also voted to abstain, does not believe the council has properly communicated its reasoning.
He said: “The pressure is on the smaller businesses, it’s extremely important that this council takes a lead.
“So many of the businesses we represent as a council are going to be paying a levy even though they will not benefit from it at all.”
Cllr John Cook, the portfolio holder for communities and sport, disagrees.
He said: “There are business opportunities for all businesses, what we’re seeing is opposition for opposition’s sake.”
Cllr Fisher’s sentiment, however, has been shared by several business communities, including Claydon and Whitton, who ask for greater transparency.
Explore Suffolk estimates the DBID would result in a £2m additional investment in the visitor economy, minus its running costs.
The vote is open to impacted businesses within the area until October 19.
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