Fast Facts for BIDs Partners

What is a Business Improvement District?

A Business Improvement District is a partnership between a local authority and the local business community to develop projects and services that will benefit the trading environment within the boundary of a clearly defined commercial area. Over 42 Business Improvement Districts have now been established across England and Wales (see Established BIDs). Legislation has been passed in Scotland and the Republic of Ireland. Although most UKBIDs are currently in town centres, the principle works just as well in other places, and there are already BIDs established in industrial estates with considerable further interest. In future we expect to see many more of these non-town centre BIDs: this is recognised in the support and services offered to prospective BIDs - see Join Us.

This section is aimed specifically at Business and Public Sector partners to BIDs who want to find out more about what is happening, and how to get involved. It includes:

1. BIDs in Brief
2. What are the Achievable Benefits of BIDs?

1. BIDs in brief

BIDs allow businesses in a defined area and business sector(s) to vote on which additional services they want to invest in, to improve their trading environment
The vote is open to tenants - if a majority, both by number and by rateable value, approve the proposal, all ratepayers will contribute through their business rates
BIDs give local businesses the power to effect changes that will benefit them in their local community. Improvements may include extra safety/security, cleansing and environmental measures, improved promotion of the area, improved events, and greater advocacy on key issues, but the legislation does not put a limit on what products or services are provided
Businesses have the opportunity to agree on the projects for which they are contributing and to vote in a ballot on the amount of money they are prepared to raise, enabling them to become involved in the administration of the schemes themselves
BIDs are operated by not-for-profit partnership organisations
The interests of large and small businesses are protected through a system which requires a successful vote to have a simple majority in both votes cast and rateable value of votes cast
Businesses must be able to sustain the additional cost - if they are not viable the BID levy raise enough income to make it a worthwhile venture
Once voted for, the levy becomes mandatory on all defined ratepayers and is treated as a statutory debt
The plan voted for has a lifespan of 5 years and further proposals will have to be reaffirmed through a vote
Local Authorities play an important facilitating role and in particular are charged with legal responsibilities, including the provision of the ratings data to calculate the BID levy, the collection and enforcement of the BID levy via a ring-fenced BID Revenue Account that is then passed straight to the BID company, the organisation of the formal BID ballot, and the preparation and commitment to the baseline service agreements.

2. What are the Achievable Benefits of BIDS? Who can gain, and how?

EVERYONE / THE COMMUNITY

Produces economic well being and economic growth in area
Attracts inward investment
Gives competitive regional advantage
Produces social well being / improves quality of life
Develops partnership between private & public sector
Encourages corporate social responsibility
Provides sustainable investment for ongoing capital projects/services
Creates a positive sense of place and enhanced feeling of safety and well-being - provides community pride

BUSINESSES / THE OCCUPIER

Increases footfall
Increases consumer spend and sales - can lead to increase in profits
Reduces costs (crime reduction, joint activities, e.g. promotions/marketing)
Is flexible to address the issues of individual sectors
Gives businesses a local voice
Creates more appealing environment for employees
Fair to smaller businesses
Fair system, those that invest, benefit - no freeloading
Can decide and vote for action before making the investment
Can control process, monitor results and terminate it easily - flexible

LOCAL AUTHORITIES

Harnesses private sector management/organisational drive and skills
Promotes greater understanding of the role of LAs
Provides new, sustainable investment and doesn't detract from other resources
Has commercial support

THE LANDLORD

Assists capital value growth
Increases rental values of property and area
Increases an area's desirability and attracts occupiers
Increase in trade which affects turnover based rents (some retail)
Could help properties away from main footfall areas
Good PR for company locally and regionally
Forges positive links with council

A BID may already be planned in your area or your help may be needed to start it. If you would like to register your interest in BIDs, contact UKBIDs at info@ukbids.org.