Businesses in Purley have voted overwhelmingly to approve a scheme that will charge a levy to fund regeneration and growth in the area.

The Purley business improvement district (Bid) will launch in February 2016, after a ballot last week saw more than 87 per cent of businesses vote in favour of the scheme.

It will be the third Bid in the borough, after Croydon and New Addington.

Bids are praised by their supporters as a way to increase business engagement and growth in town centres, giving businesses an opportunity to contribute directly to improving their local area.

It is hoped that the Purley Bid’s business levy – 2 per cent of current business rates – will raise £130,000 a year to fund regeneration projects in the area.

Marlon Johnson, owner of Lupita Coffee House and chairman of the Purley Bid, said: “This is exactly what Purley needs.

“This town is constantly changing and the next five years will also see many changes within Purley and Croydon that will significantly alter the economy of the town.”

Simon Cripps, chief executive of Purley Bid, said: “This is a great result for Purley. It shows that Purley business owners really want to invest in making the town better for everyone.

“We are really looking forward to delivering the benefits the Bid will bring over the next five years.”

The Purley Business Association had run an 18-month campaign in support of establishing a Bid.

Some of its first priorities will be improving parking and making the streets safer.

Chris Philp, Conservative MP for Croydon South, said: “The Purley Bid will help transform Purley and give it the lift it certainly needs.”