Bangor BID

General Questions What is a BID? A Business Improvement District (BID) is a partnership between the local business community and a local authority to develop projects and services that will benefit the trading environment within the boundary of a commercial area. BIDs are funded in whole, or in part, by a levy which is additional to the non-domestic rates. The additional funding raised is used in the specified area to improve the public realm, promote business and make the area more profitable for business. How is a BID established? The process of developing a BID involves widespread consultation with businesses to ascertain what improvements they want and may be prepared to pay for. A BID proposal is then produced and a 28 day postal ballot held where businesses vote 'for' or 'against' the proposed programme. For the BID to go ahead, two conditions must be met; firstly, a majority of those voting have to vote 'yes' and secondly those 'yes' votes have to correspond to more than 50% of the total rateable value of all votes cast. How can a BID benefit businesses? BIDs are viewed by many businesses as a reasonable and affordable way of producing a ring-fenced fund for up to 5 years that is managed by business for business. Town centre BIDs generally focus on increasing footfall and generating additional consumer spend, something that has been particularly relevant to businesses in the current difficult economic environment. Across the UK there is clear evidence of the accomplishment of BID schemes which have led to increased footfall, higher spending, cleaner, safer and more vibrant towns. Is a BID levy compulsory? If these conditions are fulfilled, payment of the levy becomes compulsory for all businesses regardless of how they voted. Can I opt out? No. A positive result in the ballot will signify that all eligible businesses over the threshold and within the BID boundary are required by law to pay for a period of up to 5 years. Is there a minimum turnout threshold? There is no minimum turnout threshold. Who is permitted to vote on whether to accept or reject the BID proposals for the levy? The person(s), registered company or organisation who is the rate payer for non-domestic rates of a rating hereditament within the proposed BID area. There will only be one vote per rating hereditament. What is the role of the local authority? The local authority has a statutory responsibility to support the development of BIDs and facilitate their establishment. This includes conducting the ballot and collecting and enforcing the levy. The authority must also confirm that the proposed BID does not conflict with area plans and schemes. Who is liable to pay a BID levy? Any person, registered company or charity/non profit making organisation who is the occupier/leaseholder or where the property is empty and a lease does not exist, the owner, of the non-domestic rated property within the BID area is legally responsible for the BID Levy. How is the BID levy calculated? This varies according to the BID proposal and varies according to local circumstances. How and when is the BID levy payable? Councils will send a BID levy account for you to pay on behalf of the BID company. The BID levy is paid directly to the Council. What happens if I don't pay the BID levy? The Council will follow the same process as non-payment of business rates. How will the BID levy be managed? A BID is funded through the BID levy, which is a small percentage of a gross businesses' rateable value. Once a ballot is victorious the BID levy is compulsory for all eligible businesses. The BID levy is collected by the council into a ring-fenced account (called the BID Revenue Account) and passed to the BID Company for use on the projects and services set out in the BID proposal. What is the difference between a BID levy and business rate? Business rates are collected by local councils and handed over to Central Government for redistribution nationally. The levy is not like non-domestic rates - the BID money doesn't go to Central Government. All of it remains in BID area to be spent on things that you decide to put in the BID business plan. It will be collected by the Council and transferred to the BID company to spend in accordance with the business plan - a formal operating agreement will be signed by both parties to authenticate this arrangement. I'm located outside the identified BID area. This BID won't help me, will it? You should benefit from what is described as the 'Halo Effect' of the programme throughout the vicinity of the BID area. Every effort should be made to include your specific business in the overall project activities. Will non-commercial occupiers have to pay? Yes. Organisations such as local authorities, Universities etc. within a BID boundary will have to pay the levy in the same way. I'm a small business.