BIDS in Brief
- Business Improvement Districts allow businesses in a defined area and business sector(s) to vote on what additional services they want to invest in to improve their trading environment and to provide local solutions.
- Business rate payers are balloted - if a majority, both by number and by rateable value, approve the scheme, all ratepayers will contribute through their business rates.
- BIDs give local businesses the power to make changes that will benefit them and their local community. These may include extra safety/security, cleaning and environmental improvements, better marketing and a bigger say on key issues. A BID can cover almost any improvement identified by the business community.
- Businesses have the chance to agree on the scheme for which they are voting and how much they will contribute.
- BIDs are usually 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 and rateable value of votes cast.
- Once voted for, the levy becomes mandatory on all business rate payers in the BID area.
- The BID scheme can only last for a maximum of 5 years after which there has to be a renewal vote.
- Local authorities play an important role. They are responsible for various legal matters including: preparing the rates data; the collection and enforcement of the BID levy that is then passed straight to the BID company; the organisation of the BID ballot; and the preparation and commitment to the baseline service agreements which are legally binding on the authority.