Traders in a south Birmingham suburb have voted in favour of a second term for its Business Improvement District.

More than 66 per cent of eligible firms voted yes to continue the Kings Heath BID, which started in 2008.

The second term starts on April 1 2013 for a further five years.

The BID levy is expected to collect in excess of £600,000 from businesses around the high street over the life of the second term, with matched funding from Birmingham City Council or other sources taking that beyond £700,000.

The money will be spent on local improvements to enhance the trading environment.

Andy Savage, chairman of Kings Heath BID, said: “This is truly a significant day for Kings Heath.

“Having made real progress in making Kings Heath a more attractive place to shop, work, live and invest, it was vital we kept up the momentum.

“Businesses voting for the continuation of the BID will signal another five years of progress and maintain Kings Heath’s position as the leading suburb in Birmingham.

“Through a mixture of business levies and matched funding, we’ve been able to pour £1.65 million into the local economy over the last five years and we are excited to continue this work.”

The BID, which is administered by Kings Heath Centre Partnership, has focused on increasing visitors, improving staff retention for businesses and attracting new businesses to the area.

The organisation invests its levy in additional or complementary services that would otherwise not happen.

Key goals for the upcoming BID period include work with the council to develop its ticketless bus scheme, developing iconic landmarks in Kings Heath, reducing crime, increasing business recycling, creating a Kings Heath Walk of Fame and holding a full programme of events.

Kerry Wong, owner of Hedshed hair salon on Kings Heath High Street, said: “When we were looking for an area to open our new business, Kings Heath had always impressed us with how busy it was.

“Since we arrived, it has become clear that this doesn’t happen by accident.

“The BID plays a fundamental role in supporting businesses and bringing customers to Kings Heath.

“Kings Heath is on the up, and we want it to stay that way.”