A BID is a way for businesses in a defined area to decide and agree
collectively on projects and initiatives that they want to be
delivered to help their business thrive.
To decide what those projects should be, a thorough programme of
consultation is carried out, including questionnaires, newsletters,
surgeries, one to one meetings and open meetings.
Following that consultation a business plan is written which includes
those suggested priorities. The BID Business Plan varies from BID to BID
according to the needs and priorities of each BID area. When the
Business plan or proposal document has been agreed, all eligible
businesses in the area have the opportunity to vote ‘For’ or ‘Against’ the
BID in a formal ballot.
For The BID to proceed, there must be a majority vote in favour both by
number and rateable value. I.e. a majority of those businesses that vote
(the turnout) must vote in favour (a YES vote), and the total rateable
value of those businesses that vote in favour must be greater than the
total rateable value of those that vote against the scheme.
If the BID achieves this vote, the BID becomes a statutory obligation on
both the BID proposer (the BID company) and the BID voters. The BID
Company is obliged to deliver the scheme for the lifetime of the BID
(max 5 years), and there is a statutory charge on all the eligible premises
within the BID areas to pay an annual levy to fund the BID payable by the
BIDs work on a very simple principle where every business involved
benefits and contributes equally. Smaller businesses pay less, and larger
businesses pay more but each contributes the same percentage.
Together a fund is created to deliver a Business Plan which has the
power to make a real difference.
By ensuring everyone contributes, BIDs eliminate the free-loader effect,
which tend to make other schemes fail. BIDs are fair and they have also
proved to be highly effective. If the majority of businesses vote YES, the
BID business plan becomes a legal document and all businesses will
contribute (even if they voted no at the ballot). Each year the BID
Company is legally obliged to publish an audit of its delivery against
targets of the BID plan. Voters have the right to see this and hold the
company to account.
THERE ARE NEARLY 300 BIDS IN THE UK.
A BID can be set up anywhere there is a collection of business premises and owners that want to make a difference. These include: Industrial Centres,
Trading Estates, Businesses Parks, City Centres, and town centres of all types.
The great majority of BIDs are voted in for a first term. Of all the BIDs that have gone to ballot for a second term over 90% have been approved for a
further term by an increased majority, and a handful have now entered a third term.