Businesses in Putney and Wandsworth are considering forming new Business Improvement Districts (BIDs) in a move that could generate more than £2m for the borough over the next five years.

The money would be used to ‘enhance the local environment and boost trade’.

BIDs work by levying charges on business rate payers in a defined district, which are then used for projects to benefit the area.

They aim to allow business communities and local authorities to work together to improve the local trading environment.

Businesses pay into the BID according to their size, with some smaller firms being exempt and a cap being applied.

Wandsworth Council business spokesman Kim Caddy said: “There are currently around 50 BIDs in London and the number is growing. They give business communities a strong voice and focus on tackling the core issues affecting local trade in a way that wouldn’t otherwise be achievable.

“The draft business plans for Putney and Wandsworth Town include very positive proposals, identified through consultation with businesses, like town centre marketing campaigns and investing in additional street cleaning and measures to address parking and crime.”

The proposed Putney BID expects to raise £1.3m over five years, while in Wandsworth Town £970,000 would be raised over the same period. Firms can comment on the proposals until August 22, after which the plans will be finalised.

Businesses will be asked to vote in a legally-binding ballot between November 4 and December 1 to determine whether the scheme goes ahead.