Some frequently asked questions
What is a BID?
A BID is a Business Improvement District. A BID is a defined area within which rate-paying businesses decide on new improvements to help transform their area – and then vote to agree the investment. This money is then ring-fenced to provide the improvements agreed through the development of the BID Business Plan. The mechanism is supported by the government as it corresponds to their strategy of encouraging partnership working between the business community, local authorities and other agencies and developing ideas and practical initiatives driven by businesses.
How is the BID funded?
The delivery of the BID business plan is funded by the businesses in the BID area and aims to be both fair and transparent. If the majority of businesses in the BID ballot vote in favour of the BID Business Plan, by both number and rateable value, all businesses in the area which fall within the set criteria set are subject to the BID levy. This is normally set as a percentage to rateable value of the business property ensuring an equitable and transparent approach to the setting the levy contributions. This overcomes any problem of a few businesses paying for improvements that benefit the many.
In addition the BID will also seek to obtain funding from other sources to help deliver particular projects and improvements identified in the BID plan.
How long does a BID last?
A BID lasts for up to five years. At the end of which the BID Business Plan has to be updated and a new vote taken for the BID to carry on. This is called a renewal.
What does a BID deliver?
The BID delivers the improvements and projects that the businesses want and need and have identified as being important in the BID Business Plan. It is not there to replace the services provided by Crawley Borough or West Sussex County Council. The BID’s activities must be additional to those the businesses would have otherwise received. Services from the Police, the local authorities and other agencies are benchmarked and monitored by the BID Company to ensure that the money generated through the BID is used for the improvements voted for by the businesses and not to subsidise either Council.
How is the BID Business Plan put together?
The BID Business Plan is put together after considerable research undertaken to determine what improvements the businesses would like to make, which is then voted on by all liable non-domestic ratepayers in the BID Ballot. This means that businesses have a direct role in deciding what improvements should be made in the Manor Royal in the next five years.
Who manages the BID?
A company is formed which has the responsibility for ensuring that the business plan is implemented. The Manor Royal BID Company is a not for profit company limited by guarantee. It has its own management Board made up of businesses from the BID area who volunteer their own time supported by Management Group and various Project Teams. The Board, Management Group and Project Team members are made up of individuals who represent the cross section of businesses in the area. In this way the businesses control the implementation of the business plan.
How does my business benefit?
The direct business benefits include:
- Delivery of practical projects driven by business ideas
- Development of the area influenced by businesses
- An effective working relationship between the Manor Royal businesses and a number of organisations including Crawley Borough Council
- A focus on investment to improve Manor Royal over a five year period
- A focus on the delivery of measurable improvements to benefit all businesses
BID legislation and regulations
The Local Government Act, which received its Royal Assent on 18th September 2003, introduced Business Improvement Districts (BIDs) to the UK. This was followed by legislation in September 2004 enabling BIDs to be set up in England and Wales.
Legislation providing for establishment of BIDS
See Statutory Instrument 2004 No. 2443 - Business Improvement Districts Regulations
More information about BIDs
For more information and advice about Business Improvement Districts (BIDs) visit British BIDs