What Is A BID

• A BID can only be formed following consultation and a ballot in which businesses vote on a BID Proposal for the area.
• The ballot is run by the local authority or outsourced by the local authority to a third party.
• All businesses eligible to pay the levy are balloted for a minimum of 28 days.
• In the UK, for a BID to go ahead the ballot must be won on two counts: straight majority and majority of rateable value. This ensures that the interests of large and small businesses are protected.
• There is no minimum turnout threshold but the average in a ballot is 47%
• The National BID Criteria and Guidance Notes are published to support locations during the development phase.

To a more detailed insight on the specific factors of Developing a BID, book onto the training course here.

• BIDs operate for a maximum of five years within the legislative framework. If they wish to continue they must go through a renewal ballot process to secure another BID term of up to five years.

For more details, contact our team on 0845 112 0118. Our team of experienced BID professionals can assist with any queries and discuss British BID membership.

• The BID Proposal or Business Plan sets out businesses’ priorities for improvements for the area and area services, as well as how the BID will be managed and operated.
• This document becomes legally binding once a ballot has been won and becomes the framework within which the BID will operate.
• An Operating Agreement is entered into between a BID and their local authority governing how the BID levy monies are collected and administered and passed over to the BID.
• BIDs enter into Baseline Agreement with their local authority and other service providers, which specify the level of service provision in the area. These ensure that any services the BID provides are additional.

Make sure you are up to speed with every aspect of your BID renewal process by booking on to our 'Managing your BID renewal campaign & ballot' training course.

BID Levy and Funding

• A BID is funded through the BID levy, which is normally between 1% and 1.5% of the hereditament's rateable value, however there are some that have opted for higher levies, particularly in smaller locations with lower rateable values and industrial areas.
• Once a ballot is successful the BID levy is mandatory for all eligible businesses above the threshold set in the BID proposal. BIDs can choose to exempt certain businesses from paying the levy (and therefore from voting in the BID ballot). Many BIDs exempt the smallest businesses; and some exempt certain business sectors.
• BIDs are often successful at attracting funding in addition to the BID levy.

Governance and Management

• The vast majority of BIDs are not-for-profit companies limited by guarantee.
• BIDs set out how they will be governed in their BID Proposal or Business Plan and Company Articles of Association.
• Most BIDs are governed by a board made up of BID levy payers representing the BID area.
• BID management teams vary with the size, focus and budget of each BID but will generally encompass management, administration, business engagement, marketing and communications and project management

Performance Measurement

• It is important for BIDs to measure performance to demonstrate the return on investment to levy payers through activities in the area.
• Industry Accreditation is focused on ensuring quality management systems exist within BIDs

For more information email contact@britishbids.info.