What is a BID?
This is the definition of what a BID is from the British BIDs website:
A Business Improvement District (BID) is a business-led and business-funded body formed to improve a defined commercial area. The benefits of BIDs are wide-ranging and can include:
- Businesses decide and direct what they want in their area
- Businesses are represented and have a voice in issues affecting their trading area
- BID levy money is ring-fenced for use only in the BID area Increased footfall and spend
- Improved staff retention
- Reduced business costs
- Enhanced marketing and promotion
- Support with sustainability initiatives
- Guidance in place shaping vision activities
- Facilitated networking opportunities with neighbouring businesses
- Assistance in dealing with the Council, Police and other public bodies
Key Facts
- In the UK, the majority of BIDs exist in town and city centres, however they are also in industrial, commercial and mixed-use locations.
- The BID mechanism allows for a large degree of flexibility and as a result BIDs can vary in shape and size.
- The average size of a BID is 300-400 hereditaments, with some of the smallest having fewer than 50 hereditaments and the largest at over 1,000.
- Annual income is typically £200,000-£600,000 but can be as little as £50,000 per annum and as much as £2 million+.
- Legislation enabling the formation of BIDs was passed in 2003 in England and Wales (with subsequent regulations published in 2004 and 2005 respectively) and in 2006 in Scotland.
- BIDs were first established in Canada and the US in the 1960s and now exist across the globe, including in South Africa, Germany, Japan, New Zealand and Australia.
Developing a BID
- A BID can only be formed following consultation and a ballot in which businesses vote on a BID Proposal for the area.
- The ballot is run by the local authority or outsourced by the local authority to a third party.
- All businesses eligible to pay the levy are balloted for a minimum of 28 days.
- In the UK, for a BID to go ahead the ballot must be won on two counts: straight majority and majority of rateable value. This ensures that the interests of large and small businesses are protected.
Renewing a BID
BIDs operate for a maximum of five years within the legislative framework. If they wish to continue they must go through a renewal ballot process to secure another BID term of up to five years.
The BID Proposal and Business Plan set out businesses’ priorities for improvements for the area and area services, as well as how the BID will be managed and operated.
This document becomes legally binding once a ballot has been won and becomes the framework within which the BID will operate.
An Operating Agreement is entered into between a BID and their local authority governing how the BID levy monies are collected and administered and passed over to the BID.
BIDs enter 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.