Info Point FAQ
Ask a new question| Q: | What is a BID? |
| A: | Business Improvement Districts (BIDs) are a way of getting sustainable funding into very specific areas and delivering a range of additional services that benefit all users of that area. |
| Q: | How are BIDs created? |
| A: | A clear boundary is defined around a commercial area and a business plan for the area is created, the businesses within that boundary are put to a vote to accept the charging of a levy, and if a majority is achieved a BID is established. |
| Q: | What do BIDs do? |
| A: | They can deal with a wide range of ‘management’ issues concerned with an urban area, however the initial focus seems to be in ‘clean and safe’. |
| Q: | Do BIDs replace Local Authority services? |
| A: | No. It is essential that BID Services are 'additional' to the statutory provision from the local authority. |
| Q: | Where are BIDs operating at the moment? |
| A: | BIDs are being used increasingly throughout North America, it is estimated that more than 1,000 BIDs now exist in North America with 44 in New York alone. The phenomenon is beginning to spread to Europe, Australia and South Africa. |
| Q: | Would BIDs work in the UK? |
| A: | Yes, by developing the core principles of the US-style BIDs and carefully tailoring to the UK circumstances. |
| Q: | Why are BIDs not operating in this Country? |
| A: | There is currently no enabling legislation within the UK to facilitate the charging of a mandatory levy. |
| Q: | When will UK legislation be complete? |
| A: | The legislative framework required to operate a BID has gone through various stages within Parliament. The Regulations are expected to be complete in Autumn 2004 which means that the five BID pilots under The Circle Initiative with support from the London Development Agency are now be preparing for a vote and would be fully operational as BIDs by April 2005. For more information please click here. |
| Q: | Who can form a BID? |
| A: | A BID proposal can be developed by business, the local authority or a combination of the two, but the local authority will be consulted and can veto BIDs it considers unsuitable or unsustainable. |
| Q: | What is The Circle Initiative? |
| A: | It is the first UK ‘Business Improvement District’ pilot programme funded through £4.6m of Single Regeneration Budget funds from the London Development Agency. Led by Central London Partnership, with the City of Westminster as the accountable body. Five partnership areas are being funded over a five year period from 2001. |
| Q: | Who is running The Circle Initiative? |
| A: | Central London Partnership is the lead body, with the City of Westminster as accountable body.
(Contact details can be found in the Info Point)
|
| Q: | How is The Circle Initiative funded? |
| A: | Through £4.6m of Single Regeneration funds from the London Development Agency together with levering in a further £7m of private funds over the five year life of the programme. |
| Q: | Where are the five Circle Partnership areas? |
| A: | Better Bankside, London Borough of Southwark Waterloo Quarter Business Alliance, London Borough of Lambeth 4Holborn BID, London Borough of Camden Paddington BID, City of Westminster Heart of London Business Alliance, City of Westminster (Location maps can be found within the partnership sections) |
| Q: | Why were the five Circle Partnership areas chosen? |
| A: | Given the initiative is a pilot programme it was essential to identify areas across central London that represented as many different aspects of scale, size, uses and issues as possible. |
| Q: | What lessons have been learnt so far from The Circle Initiative? |
| A: |
Through the Learning Network a number of lessons have been identified. The lessons published to date can be found in the Circle section and can be downloaded from the Circle publications section. |
| Q: | How is the BID boundary defined? |
| A: | The BID area should be focused predominantly on a commercial area and should be capable of providing a viable levy income. It could be a town-centre or a specific quarter or district within a large town, for example. Industrial estates, business parks, suburban shopping centres and market towns are other possible examples. The boundary must be defined at an early stage, it defines the scale and focus of the BID. As all businesses in the area will be paying the additional levy it is important that the area is carefully thought out. |
| Q: | How will the BID vote work? |
| A: | The billing authority in which the proposed Business Improvement District will operate is responsible for conducting the ballot to approve the BID proposals.
The BID proposers will first indicate to its potential members those properties which are liable for the levy. It is vital that all the businesses in the proposed area that would pay the levy be included in the vote. The Returning Officer from the local authority will then identify which individual in each business has the right to vote, as each rateable property only has one vote. A notice to this effect will be sent out before the voting process begins. This could be the Company Secretary in a Limited Company, for example, or their nominated representative. Charities, voluntary organisations and unincorporated associations would need to nominate an individual. Notice of the ballot must be given to all ratepayers qualified to vote at least 56 days prior to the opening of the vote. The notice should include the main points of the proposals but not be seen as supporting or opposing the proposed BID. The ballot will be conducted by post, although the billing authority can accept electronic votes at its own discretion. The ballot should be conducted over a period of a minimum of 20 working days, the BID would decide on the exact timescale. The billing authority will be responsible for calculating the success of the vote and for publicly announcing the result. To win the vote - at least 51% of businesses in the area must vote in favour of the BID and in turn, this 51% should also represent at least 51% of the total rateable value of the proposed BID area. |
| Q: | How will a BID be run? |
| A: |
The business plan should set out exactly what a BID
intends to achieve. The BID management team should have the following skills: |
| Q: | How long will a BID run for? |
| A: | The BID will run for a periods of five years, this means that the BID must be able to demonstrate the benefits produced produced for the businesses and the local area. Short term as well as long term targets should be set and change should be measured to evaluate results. |
| Q: | Will it be property owners or occupiers who pay the levy? |
| A: | Current legislation includes only occupiers but it is hoped to engage owners, through voluntary contributions for example. In addition, the government has committed to a formal review process after two years.
Please click here for more information on the legislation. |
| Q: | How might the levy be calculated? |
| A: | There are many options for how a BID levy might be calulated, and it will depend on the circumstances within a local area. However, the legislation allows for flexibility which could involve some or all of the following: - the levy may be based on a straight percentage of the rateable value - certain types of use could be excluded entirely from the levy, eg creating a retail-only BID - a variable levy could be applied that gave discounts to certain types or areas of property e.g. upper floors, or shopping centre tenants with an existing service charge, may pay a reduced levy - properties under a certain rateable value could be exempt e.g. small businesses where the administrative cost may be higher than the potential income |
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