What is a BID?
	What services will a BID provide?
	How much will it cost?
	Where can a BID exist?
	Who can set up a BID?
	How does the vote work?
	How many BIDs will there be?
	When will they start?
	What about Scotland and Wales?
	Do any other countries have BIDs?
	Does the BRC support BIDs?
	Where can I find more information?

What is a BID?
A Business Improvement District (BID) is a precisely defined geographical area of a town, city, or an other commercial district where ratepayers have voted to invest collectively in local improvements in addition to those delivered by local Government.

Put more simply, a BID is a mechanism that allows local businesses to agree to pay a supplement on their rates bill to provide additional services and facilities to improve the trading environment. If the BID is passed by a vote, businesses within the BID area will be required to pay a levy on their rate bills. Exactly who will pay will be made clear at the time of the vote and all affected ratepayers will have the opportunity to vote on the BID proposal. If the proposal passes the vote, the local authority will collect the BID levy and distribute funds to the BID. The BID can last for no more than five years, and will either be dissolved at the end of its term or it has the option to seek a new electoral mandate.

What services will a BID provide?
A BID will provide services and facilities that are additional to, and interact with existing local authority services. The location and chosen boundary of the BID will determine the amount of money that can be raised and the range of services it provides. A BID in a town or city centre for example can be expected to have a strong retail focus.

Examples of the services a BID could offer retailers are likely to include an emphasis on cleanliness and safety, an essential feature to the vitality of any retail centre. BIDs may look to improve street cleaning or introduce highly visible "wardens" onto the main street to deter crime and reassure shoppers. Other features could include capital expenditure to improve the appearance of the streetscape and accessibility of the location; promoting the area to drive footfall by branding, advertising and events to raise awareness of the retail centre and create a recognised identity; as an advocate, acting as a focal point in communication between retailers and the public sector.

How much will it cost?
There is no uniform rate for the BID levy as the size of the BID levy will depend on the location and the range of services the BID intends to offer. Each BID will determine its own levy and charging structure, which will be included in the business plan and subject to consultation prior to the vote. It is likely that most BIDs will calculate the levy with reference to the ratepayer's rateable value. A BID can choose to exempt or offer discounts to certain categories of ratepayers.
It is also possible for other stakeholders to contribute financially to a BID. Property owners, local authorities, and regional development agencies are examples of key stakeholders who have an interest in the economic sustainability of communities and are likely to be involved in the funding of BIDs.

Where can a BID exist?
A BID can exist in any location where the local business community wish to collectively invest to improve their business environment. This can include town centres, commercial office developments, business and industrial parks business parks and market towns.

Who can set up a BID?
Anyone who pays non- domestic rates, owns property or can claim to represent a group from a particular area will be able to set up a BID. A Board representing relevant stakeholders from the area will control the BID, almost certainly with a strong business representation. Other relevant stakeholders would include the local authority and property owners where they have chosen to contribute to the BID.

How does the vote work?
Every business that would be required to pay the levy will be able to vote for or against the BID. The ballot will take place by post and the ballot paper itself will be sent to the ratepayer's billing address. The ballot form will be transferable, allowing larger businesses to pass the ballot paper to the appropriate decision maker. For the vote to succeed a BID must win a majority of votes cast both by number and also by rateable value. This is intended to balance the interests of small and large ratepayers.

How many BIDs will there be?
In England and Wales there are 22 official pilot sites currently developing BIDs. These receive Government backing in the form of resources and support, channelled through the Association of Town Centre Management. They exist to inform best practice of the creation and development of BIDs. In addition to these sites, approximately 50 other locations, including several in London, have expressed an interest in developing a BID.

When will they start?
The Local Government Act, which received its Royal Assent on 18th September 2003, introduces Business Improvement Districts (BIDs) to the UK. Regulations setting out how BIDs will operate in England are likely come into force in the summer 2004. The first BIDs, if passed by a vote, will be able to bill ratepayers around October 2004 although most will wait until the new rates bills are issued in April 2005 for reasons of practicality.

What about Scotland and Wales?
The sections of Local Government Act relating to BIDs apply to both England and Wales, but it is for the Welsh Assembly to draft its own regulations. It is likely that Welsh regulations will closely resemble those in England and will come into force mid-to-late 2004.The issue is considered separately in Scotland as the Local Government Act, does not apply there. The Scottish Executive however is keen to benefit from the introduction of BIDs in Scotland and has recently consulted on its initial proposals.

Do any other countries have BIDs?
BIDs have existed in Canada and the United States since the late 1970's and the concept has spread as far as South Africa and New Zealand. It is estimated that there are over 1000 BIDs operating in the North America today, with budgets ranging from $3,000 to $15m (US).

Does the BRC support BIDs?
The BRC recognises that, if properly implemented, business improvement districts could provide retailers with an important tool to co-ordinate collective investment to improve their trading environment. BID services however must be genuinely additional to statutory and accustomed local authority provision and deliver tangible benefits to the retail community.
The BRC is actively involved with key organisations developing BIDs and sits on the Steering Group for the National BIDs Pilot Project (ATCM/ODPM) and the London BIDs Advisory Board (CLP).

Where can I find more information?
The BRC produces a range of explanatory information for use by retailers engaging with BIDs on this website.

For further information please contact Paul Browne, 020 7854 8945, paul.browne@brc.org.uk