5th February 2012
Briefing Paper - Business Improvement Districts
12th Sep 2001
Business Improvement Districts
Business Improvement Districts offer local businesses the opportunity to actively contribute to improving their local area. From providing additional signage to improving the condition of the roads; providing enhanced security to tackling litter and graffiti: businesses will be able to make a real contribution towards tackling the issues of most importance to themselves.
BIDs will be funded by an additional business rate agreed together by local businesses and councils with initial proposals being made by either the local authority or businesses themselves. The additional resources raised could then be used to help pay for new projects such as making streets and other public open spaces safer and cleaner. Many of the details of the BID would be left to local agreement, including: the area to be covered; the amount to be raised; what it would be spent on; and, the local council/business partnership for implementing it.
The concept of a supplementary business rate was initially introduced through the Modernising Local Government Finance Green Paper. However, the idea has been modified following comments made during the consultation period.
Under the proposed scheme, there would be a ‘contract’ between the council and local business for additional services or improvements in return for an additional rate. Businesses would know in advance how much the rate would be and what it was being raised for. They would vote in a referendum on a package which would include:
• The amount to be raised;
• The purpose for which it was being raised;
• The arrangements for spending it (a partnership between the local authority and business specifically focused on the BID); and
• The circumstances in which a further referendum would be needed (e.g. to raise an additional rate or to change the purposes for which it was being used.)
Once the scheme was endorsed by a majority vote, the rate would be payable by a
