Business Improvement Districts (BIDs) - frequently asked questions
What is a Business Improvement District (BID)?
Since September 2004 the BIDs legislation enables businesses in a given area in England or Wales to lead on and develop their own unique area improvement plans.
A BID proposal is developed (usually by the business community) through research and consultation with local businesses of a particular area. The proposal is then voted upon by all those who would be expected to pay the additional levy, based upon the business rateable value, in order to fund the improvements. Most BIDs also include exemptions such as businesses below a certain rateable value, voluntary organisations, schools or other not-for-profit organisations affected by the BID.
This additional levy is then ring-fenced for the area to fund the extra services and improvements identified in the proposal. Each BID is operational for a maximum of five years before a new vote has to be taken.
These services and improvements must be in addition to those that the local authority and other statutory agencies already provide. BIDs have been shown to add value, encourage investment and increase footfall to areas.
Typical features of a BID include:
- Physical improvements, including lighting, graffiti removal, greening and cleaning projects
- Introducing extra security measures for streets and businesses such as warden schemes, radio link projects
- Improving open spaces for employees and visitors
- Developing area marketing initiatives, increasing local networking and business-to-business opportunities
- Public events and expansion of tourism
- Improving staff retention and recruitment
- Increasing access through improved transport and parking arrangements
It is important to note that BIDs are business-led and are promoted by businesses. The local authority has a statutory responsibility to facilitate their establishment. They can only be formed with the active participation and consent of local businesses.
What is the role of the local authority?
The local authority has a statutory responsibility to support the development of BIDs and facilitate their establishment. In Lambeth this includes conducting the ballot and collecting and enforcing the levy. The authority must also confirm that the proposed BID does not conflict with area plans and strategies.
Are any BIDs already operating?
Since the legislation gained royal assent 17 BIDs have been formally established in London.
The Circle Initiative programme led by Central London Partnership has been funded through the Single Regeneration Budget from the London Development Agency. It has supported five pilot BIDs in London (all of which have been successful at ballot) and is developing a series of lessons covering all aspects of BID development. For more information please visit the London BIDs website
The Association of Town Centre Management (ATCM) runs a programme of 22 approved and pilot BIDs throughout the UK. For more information please visit their National BIDs Advisory Service website. This programme is funded by the Department for Communities and Local Government .
Are there currently any BIDs in Lambeth?
Yes. On 1 March 2006 the Waterloo Quarter Business Alliance (WQBA) became the borough's first BID. In broad terms, Waterloo Quarter covers the area in Lambeth bounded by Waterloo Station to the west and including Lower Marsh and the Cut.
In April 2008 WQBA was successful in a ballot covering the Southwark end of the Cut and Blackfriars Road, effectively becoming the country's first cross-borough town centre BID.
Further information (including a copy of the BID business plan, area covered and details of improvement projects undertaken to date) can be found on the Waterloo Quarter website, by contacting Helen Santer, Director of Operations, hsanter@waterlooquarter.org.
Waterloo Quarter's BID proposal was endorsed at Lambeth's November 2005 Executive (PDF format). A copy of the decision can be found at Item 10.
Who is entitled to vote whether to accept/reject the BID proposals for the levy?
The person(s), registered company or organisation who is the ratepayer for non-domestic rates of a rating hereditament within the proposed Business Improvement District.
There will only be one vote per rating hereditament (rating assessment).
How does the voting work?
The ballot has to meet two tests. Firstly, there must be a simple majority (above 50%) of those voting. Secondly, those voting in favour must represent a majority of the aggregate rateable value of the hereditaments voting.
The full ballot procedure and ballot papers are sent to those ratepayers who are eligible to vote. The WQBA ballot was conducted entirely by post by the Independent Scrutineer Electoral Reform Services of 33 Claredon Road, London N8 0NW.
Who is liable to pay a BID levy?
Any person, registered company or charity/non profit making organisation who is the occupier/leaseholder or where the property is empty and a lease does not exist, the owner, of the non-domestic rated property within the BID Area is liable for the BID Levy.
How is the BID levy calculated?
This can vary according to the BID proposal. In the case of WQBA's BID, It will be 2% of each hereditament's rateable value (1% for a charity qualifying for mandatory rate relief). So if your rateable value is £10,000.00 you will have to pay £200 per annum (or £100 per annum for a charity). It is calculated on a daily rate liability, so if you vacate the premises during the life of the BID term you will only have to pay for the period you occupied the premises.
How and when is the BID levy payable?
For those ratepayers in the WQBA BID Lambeth Council will send you a BID levy account for you to pay on behalf of the BID company. The BID levy is paid direct to Lambeth Borough Council on 1 April 2006 or for new ratepayers within 14 days of the account being sent to you.
There is no instalment facility but if you are experiencing difficulty in paying the account, you can telephone the council on 020 8315 2255 to discuss payment.
What if I can't pay the amount shown on the BID levy account?
Telephone 020 8315 2255 to discuss payment.
What happens if I don't pay the BID levy?
Lambeth Council will send you a reminder. You will have 14 days from the date shown on the notice to pay the reminder. If the BID levy remains outstanding after 14 days, a final notice will be issued, followed by a summons if the charge remains unpaid. If a summons is issued, £160.00 court costs will be added to the account, if this remains unpaid, the charge will be passed to the council's bailiff to collect, incurring further costs.
I have changed address. What do I do?
Please telephone the Business Rates team on 020 8315 2255 or write to:
London Borough of Lambeth Business Rates Team
PO Box 165
Bromley
Kent BR1 3ZA
Please quote your Non Domestic Rate account payment reference number and also your BID levy payment reference number.
Who can I speak to for more information?
For further information on BIDs in Lambeth contact:
Keith Trotter, Strategic Regeneration Officer
Corporate Regeneration
2nd Floor, Phoenix House
10 Wandsworth Road
London, SW8 2LL
Tel: 020 7926 2705
Email ktrotter@lambeth.gov.uk
For further information on Waterloo Quarter contact:
Helen Santer, Director of Operations
Waterloo Quarter Business Alliance
Suite 7, 45-46 Lower Marsh
London
SE1 7RG
Tel: 020 7620 1201
Email: hsanter@waterlooquarter.org
Website: www.waterlooquarter.org
For more information on BIDs go to the following web sites: