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What Is A BID?

A Business Improvement District (BID) is a business-led and business-funded body formed to improve a defined commercial area. The benefits of BIDs are wide-ranging and can include:

  • Businesses decide and direct what they want in their area
  • Businesses are represented and have a voice in issues affecting their trading area
  • BID levy money is ring-fenced for use only in the BID area
  • Increased footfall and spend
  • Improved staff retention
  • Reduced business costs
  • Enhanced marketing and promotion
  • Support with sustainability initiatives
  • Guidance in place shaping vision activities
  • Facilitated networking opportunities with neighbouring businesses
  • Assistance in dealing with the Council, Police and other public bodies

To gain a better understanding of what a BID entails, attend 'An Introduction to BIDs' training course.

  • In the UK, the majority of BIDs exist in town and city centres, however they are also in industrial, commercial and mixed-use locations.
  • The BID mechanism allows for a large degree of flexibility and as a result BIDs can vary in shape and size.
  • The average size of a BID is 300-400 hereditaments, with some of the smallest having fewer than 50 hereditaments and the largest at over 1,000.
  • Annual income is typically £200,000-£600,000 but can be as little as £50,000 per annum and as much as £2 million+.
  • Legislation enabling the formation of BIDs was passed in 2003 in England and Wales (with subsequent regulations published in 2004 and 2005 respectively) and in 2006 in Scotland.
  • BIDs were first established in Canada and the US in the 1960s and now exist across the globe, including in South Africa, Germany, Japan, New Zealand and Australia.
  • 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.
  • The National BID Criteria and Guidance Notes are published to support locations during the development phase.
  • 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 and Business Plan set 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 'Planning & Managing a BID Ballot' training course.

BID Levy and Funding

  • A BID is funded through the BID levy, which is normally between 1% and 2% 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.

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DATES FOR YOUR DIARY

Managing a BID Efficiently

An efficient BID Manager is one who can use their resources to get the job...

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Next Session: Tuesday 24th June 2025, 10:30 - 13:00

An Introduction to BIDs

Whether you are developing a BID, working in a BID, a Board member, new to...

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Next Session: Wednesday 2nd July 2025, 10:30 - 13:00

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