A BID Business Plan identifies a list of projects and a number of factors including defining the BID area.
All eligible businesses in the area are given a vote in a ballot run by the Local Authority.
A BID only goes ahead if 50% or more of eligible businesses vote in favour of it and the aggregate rateable value of those voting in favour exceeds that of those who voted against.
After a successful ballot all eligible businesses are charged an annual levy on their Rateable Value administered and collected on behalf of the BID Company by the Local Authority.
The rate of levy can be as high as 5% of Rateable Value but is most often 1%.
The running of BIDs is defined by legislation and the activities of BID Companies is monitored on behalf of the Government by the Local Authority. The BID Board is made up of levy payer Directors elected at an AGM.
A BID or Business Improvement District is a business led and business funded body formed to improve a defined commercial area.
The benefits of BIDs cited by the businesses they represent are wide-ranging and include:
Since their introduction to the UK with the first formal ballot in December 2004 the number of Formal BIDs in the UK and the Republic of Ireland has steadily risen to 153 by 2013 of which 122 are town centre BIDs.
These figures represent over 50,000 businesses investing millions of pounds per year in their local areas whether they be towns, city centres or industrial estates.
As well as managing projects to improve the local area, BIDs are very significant in representing the views of business to local authorities.
For further information visit the British BIDs website.