Business Improvement Districts £600,000 but the smallest BID raises £50,000 per annum while some of the London BIDs raise as much as £2 million per annum. • Legislation enabling the formation of BIDs was passed in 2003 in England and Wales and in 2006 in Scotland. • The first BID in England started in January 2005. • The first Scottish BIDs started in April 2008 as did the first Welsh BID. • BIDs were first established in Canada and the US in the 1960s and now exist across the globe. • There are over 230 Business Improvement Districts in the UK at present. • The combined annual BID levy is over £63 million; averaging £352,000 per BID per year.
representing the BID area. BIDs operate for a maximum of five years. If they wish to continue they must go through a renewal ballot process to secure another BID term of up to five years, which Brighton has done successfully twice.
Eastbourne’s Vision for 2017 “To create a BID to enable us to develop and promote a vibrant and successful town centre at the heart of Eastbourne with an attractive shopping and social environment that visitors and residents will enjoy for shopping, eating and exploring. We will link Eastbourne town centre to the seafront via a stylish, buzzing and attractive place for families, visitors and residents of all ages.”
• BIDS tend to act as a catalyst to stimulate additional income from different funding streams. • Some local authorities charge to collect the BID levy although the majority (34%) do not charge. • After the initial 5 year term a renewal ballot is required – there is a pattern of improvement in the percentage voting in favour at the renewal ballot.
“In a shopping area, for example, a BID will aim to provide an attractive environment to persuade shoppers to visit the town” The small print… A BID can only be formed following consultation and a ballot in which businesses vote on a BID Proposal or Business Plan for the area. The ballot is run by the local authority and all businesses situated in the BID are balloted over a minimum period of 28 days. In the UK, for a BID to go ahead the ballot must be won on two counts: a straight majority and majority of rateable value. This ensures that the interests of large and small businesses are protected. The BID Business Plan sets the priorities chosen by the businesses situated in the BID area for improvements in the area, as well as how the BID will be managed and operated. This plan becomes a legally binding document once a ballot has been won and becomes the framework within which the BID operates. The BID area enters into Baseline Agreement with their local authority and other service providers, which specify the level of service provision in the area. These ensure that any services the BID provides are additional. A BID is funded through a levy, which is calculated as a small percentage of a businesses’ rateable value. Once a ballot is successful the BID levy is mandatory for all eligible businesses. BIDs can be successful at attracting funding in addition to the BID levy. They are particularly attractive to public sector grant making bodies due to the private sector match-funding available through the BID levy. Local authorities, property owners, and businesses outside the BID area can all provide additional income for BIDs through voluntary agreements. The vast majority of BIDs are not-for-profit companies limited by guarantee and are governed by a board made up of BID levy payers
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