Traders have said yes to establishing Brighton and Hove's first Business Improvement District (BID) - and putting the wow factor back into Christmas.

A bigger-than-expected majority - 63 per cent - agreed to pay about £300 each for the next five years to pay for festive decorations, added security and marketing.

The BID covers the main shopping precincts in Meeting House Lane, Market Street and the pedestrian part of East Street in The Lanes, and North Laine and North Street.

Almost £1 million will be raised by the traders alone. Thousands of pounds more could be raised through matched UK and European grants. More than 380 business owners were eligible to vote in the referendum last Friday. Of the 174 who took part, 111 voted yes, 62 voted against and one ballot paper was spoilt.

The yes vote represented 70 per cent of the total rateable value of the businesses which took part in the referendum, suggesting big names like Boots and the banks voted in favour.

The BID's boundaries were drawn following a £50,000 feasibility study by the Brighton City Centre Business Forum which sought to minimise the risk of a no vote.

Shopkeeper Peter Stocker, secretary of the North Laine Traders' Association, was thrilled with the outcome of the vote, which was carried out by the Electoral Reform Service.

He said: "This is one of the best things that could have happened to Brighton and it means, at last, we are going to have a Christmas campaign to be proud of.

"We can also look forward to an increased security presence and a massive PR campaign, none of which would have been possible with a BID being in place. Nobody likes paying more money but these are specific things we are paying for and they will significantly benefit the North Laine and The Lanes. The lights will be fantastic and they will put us on the map. They will give us credibility and give something back to the paying customer."

BIDs - which involve traders agreeing to a small levy on their business rates - originate in the US and have already been taken up in 23 towns and cities in the UK.

The Brighton BID is the first in Sussex and only the second in the South-East outside London. Retailer Stuart Wilkie, chairman of The Lanes Business Network, said: "This is an opportunity to make things happen and an opportunity that would have been sorely missed.

"It's great news but we have to realise that this is just the start of something and there is a lot of work to come to make sure things do happen.

We have to be focused."

The Business Forum, based in Pavilion Buildings, Brighton, has promoted the concept of the BID and managed all the surveys and distribution of information up to this point.

However control will now be handed over to a BID board, made up of elected traders. Nominations and elections will take place over the next few weeks.

City centre manager, Soozie Campbell said: "This result means we can now have the really spectacular Christmas lights display that Brighton deserves to have.

"We can promote shopping and eating in Brighton on a scale that has not been done before and with our increased security we can ensure that visitors to our city don't see the signs of crime and vandalism that would stop them coming back again."

She added: "We are all very excited and keen to get on with the process of selecting a Christmas lights supplier, and progressing each of the other projects."

Tony Mernagh, executive director of the Brighton and Hove Economic Partnership, had expressed private doubts about the result of the vote but was delighted with the outcome.

"I am amazed we got 63 per cent," he said, "It's fantastic news.

"The BID will put a substantial sum of money in the pot which will be raised by businesses, controlled by businesses and spent by businesses.

"Hopefully this will act as a spur for other BIDs in other parts of the city."

The Business Forum began its feasibility study over a year ago but was only given the go-ahead from the council to establish a BID in November 2005.

It was conducted at breakneck speed so that Brighton could have Christmas lights in 2006 and is the first BID to be completed in under a year.

During a six month consultation period traders ruled out projects for cleaning graffiti and hanging baskets in favour of Christmas lights, security and marketing. This was largely because the council has taken responsibility for cleaning graffiti and hanging baskets were unpopular particularly as the drought was looming.

Plans are now being hatched to launch another BID in Hove