What is a Business Improvement District?
A BID is a business-led initiative where businesses work together and invest collectively in local improvements to their business environment. It should be a partnership between private and public sectors. A BID is not a substitute for central or local government services, but is a way in which additional funding can be raised. Businesses can then decide how to use that funding to strengthen the local business economy. BID improvements and services must be in addition to those baseline statutory services delivered by local authorities.
Through consultation, normally carried out by a steering group, a range of projects and services is agreed and a business plan developed. This is then put to a democratic vote involving all the eligible businesses in the proposed area.
A BID is often a partnership arrangement through which the local business community and statuary authorities can take forward projects which will benefit the local economy. By giving the local businesses a unified voice a BID can provide an arena for businesses and local authorities to increase their understanding of each other's priorities enabling them to work together for a stronger, more sustainable economic future that will benefit local businesses and the wider community.
What are the benefits of a BID?
A BID delivers sustainable funding for an agreed period of time, allowing the private sector to work with partners within a flexible mechanism to deliver a wide variety of projects and services which will improve their business environment. A BID provides the opportunity to:
- provide clarity of vision, leadership and strategic focus to an area
- deliver additional levy investment and lever in additional funding
- drive up standards (baseline service level agreements)
- develop marketing and communications strategies
- improve competitiveness against other locations