Business Improvement Districts

The Law
Business Improvement Districts (BIDs) are partnerships between business communities and local authorities to fund and develop projects that will deliver added value to the business environment. BIDs are incorporated in the Local Government Act, which received royal assent in September 2003. The finer details are currently being formulated, with the secondary legislation expected in September - completing the legislative process.

A national BID pilot scheme was set up a year ago to work with Government to develop best practice and inform Government as it draws up this final legislation.

There will be no obligation on businesses to participate in BIDs. However, if 51% of businesses (representing 51% of the designated area's rateable value) vote in favour of one, it will go ahead, and all businesses in that area will be bound to pay the agreed levy.

Expert advice
It has been just over a year since the national BID pilot scheme was set up. The time has been spent working closely with businesses to understand both the finer details of creating a BID and how they need to be approached. The purpose of this is to ascertain how to successfully engage businesses in a scheme which will have an impact on their trading environment and to show how their involvement will shape this impact.

BIDs sell themselves as a genuine investment of your time in your local area. They argue that factors affecting your bottom line are increasingly beyond your control, and getting involved is an opportunity to participate in a scheme which must deliver physical change and tangible results.

It is worth noting that involvement will be at your own expense. BIDs are funded by a levy set and paid by the businesses. Therefore, while you agree what you pay through a majority vote and control where that cash goes, all money will be on top of what you already pay in business rates to your local authority.

The BID can address any problems you are experiencing. Common themes emerging are issues of street cleanliness and security/safety in town centres at night. In essence, all the pilots are looking to enhance footfall, reduce costs with collective buying power and, in general, rectify problems that adversely affect businesses. If there are no problems, then there is no requirement for a BID.

Government legislation will reflect best practice from the experience of the pilot towns. When the law becomes active this autumn, the Government argues, it should be seen as a tool to be used to enhance business performance. Every business within the designated BID area has an opportunity to set the agenda for change, control how much money is required to redress problems, and monitor the results.

Check list

• Check if your business is in a pilot BID area.
• Get involved to ensure that the proposed plans affect the area outside your front door.
• Make sure the BID will add genuine value to your business.
• Ensure the issues that affect your premises feature high on the agenda.
• Ensure there are delivery guarantees within the BID business plan.

Beware!
If you don't get involved, there is every likelihood that a BID could be created in your area but that it doesn't affect what you want to see targeted.

Contact
Jacquie Reilly and the project team at the national BID pilot scheme on 020 7227 3468