What is a BID?
BIDs regenerate defined areas, increase footfall, stimulate the economy, increase the existing appeal and market the area. BIDs typically make areas cleaner, greener, safer and more secure with an enhanced image, high profile programme of PR, marketing and events; ultimately establishing the BID area as a destination: the place to visit, shop, eat, drink, work and do business in.
BIDs are positive change, giving businesses the opportunity of playing an even more important role within their town, city or business park, giving the business community a strong collective voice and a sustainable resource to carry out the improvements, projects, initiatives and ideas that they have chosen to have implemented. A BID gives the power back to the business community and their collective investment enables businesses to make the changes that feel will improve the vibrancy of their area and increase footfall.
A BID is a 100% business-led and 100% business managed private / public partnership in a defined area such a town or city centre or one or a cluster of business parks, delivering an agreed set of services, projects and improvements chosen entirely by the businesses themselves after a period of in-depth consultation. The projects, services and improvements are always and can only be, in addition to the services currently provided for by the public sector - Council / Police.
How is a BID funded?
A BID is funded by occupiers of business premises withina defined BID boundary i.e. a town centre.
Whoever is responsible for the business rates contribution and is the legal occupier at the time of the BID ballot (as listed on the Non Domestic Rates Database) is the stakeholder involved in the BID consultation, entitled to vote at BID ballot and subject to a yes vote, liable to pay BID levy.
Similarily to a political vote, there is no minimum turnout at BID ballot however of those that do vote, a majority by number of business and by the aggregate rateable value must vote in support of the BID.
BID levy is typically calculated at 1 - 2 % of a properties rateable value (RV). For the smaller businesses 1% RV can equate to less than £100 per annum and for the larger businesses and organisations / department stores it can be £100 per week.
BID levy is a legal, local business taxation and is invoiced by the local authority as a supplementary business tax, ringfenced then transferred in its entirety to the BID Company and reinvested back into BID area; managed by a Board of local businesses and stakeholders through a Not for Profit Limited by Guarantee Company.