What is a Business Improvement District (BID)?
A Business Improvement District (BID) is a business-led organisation in a defined geographical area where local businesses have voted to invest collectively to improve their environment.
BIDs are funded by a mandatory levy on all eligible businesses following a successful ballot. These member businesses then help set the spending priorities for the organisation, providing additional or improved services in the BID area such as extra cleaning, public realm works and promotion. While the BID levy is the primary funding tool other public and private income streams can be used for specific projects.
If your premises fall within a BID area, you will be liable to pay a BID levy on top of your business rates bill. While the local authority provides support to BIDs, they are private, not-for-profit companies and as such operate outside of Coventry City Council.
If you are a BID levy payer and would like further information regarding payments please contact The Business Rates Team.
How BIDS are set up and operate
The BID proposer can be any non domestic ratepayer, property owner, local authority or other key stakeholder with an interest in the BID area.
The BID proposer is then required to develop a proposal and submit this to the local authority, along with a business plan. The proposal should set out the services to be provided and the size and scope of the BID. It will also set out who is liable for the levy, the amount of levy to be collected and how it is calculated.
The BID proposer or body will then ballot potential business members and is required to meet two tests: more than 50% of votes cast must be in favour of the BID and the ‘yes’ vote must represent more than 50% of the aggregate rateable value of votes cast. If this happens, the BID company is established and the BID levy, the primary funding mechanism, becomes mandatory on all defined ratepayers and is enforceable as per business rates collection. The local authority manages the ballot process.
Who pays the BID levy?
BID levy rules vary between BIDs and must be set out in the proposal document businesses were balloted on, covering who is liable for the levy, the amount of levy to be collected and how it is calculated.
The proposal will also provide details of any relief from the BID levy that may apply and who is eligible. The amount and type of relief is dependent on local circumstances but could typically include charity relief.
How long will a BID last?
The maximum term is 5 years. Once the term is completed the BID will automatically cease. If the BID company wishes to continue its activities it must hold a new ballot (commonly referred to as a renewal ballot).
Who manages the BID?
A BID is managed by a Business Improvement District body, this is often a private company and most are not-for-profit companies.
The BID body is responsible for developing and implementing the proposal which sets out how the BID will operate. They will provide the local authority with this proposal along with the business plan (including the estimated cash flow and predicted revenue to be generated by the BID levy along with the financial management arrangements).
The local authority will manage billing and the collection of the BID levy, holding the levy in a ring-fenced revenue account on behalf of the Business Improvement District body.
Ballot results
Coventry Business Improvement District (BID) Ballot
Date of Ballot: 14 February 2023
Declaration of result
Liz Read, Deputy Ballot Holder declares the proposal to renew the Business Improvement District for Coventry City Centre has been approved. A majority of the Business ratepayers in the proposed BID area who voted, voted in favour of the proposal, both by aggregate rateable value and numbers voting.
Ballot results for Coventry Business Improvement District (BID)
|
Total number of votes cast in the ballot, excluding any given on ballot papers rejected |
142 |
|---|---|
|
Aggregate rateable value of each hereditament in respect of which a person voted in the ballot |
£22,741,250 |
|
Total number of votes cast in favour of the proposed Business Improvement District for Coventry |
111 |
|
Aggregate rateable value of each hereditament in respect of which a person voting in the ballot has voted in favour of the proposed Business Improvement District for Coventry |
£18,573,500 |
BIDs in Coventry
BIDs can deliver projects, services and improve the local environment across Coventry city centre, helping to boost the local economy by supporting business communities and making our city an attractive place to live, work, visit or invest in.
BID levy funds are put towards projects set out in the relevant BID business plan. This may include initiatives like additional marketing, promotion and events, town centre management or physical improvements, and additional street cleaning.
You can find out more at each of the active BID’s websites or by contacting them via the details below.
Coventry BID
Management Suite,
Level 5, (blue corner)
West Orchard Shopping Centre,
CV1 1QX
Visit the Coventry BID website [https://coventrybid.co.uk/]