Q and A
What type of services and projects can a BID deliver?
A BID can cover almost any project or service that the businesses agree would be of benefit and worth funding, as long as these are additional to the services provided by the statutory authorities. Projects can tackle issues such as:
- access
- safety and security
- environmental improvements
- marketing and promotion
- asset management.
More innovative projects and services are expected to develop as each BID evolves and matures. Some, for example, are developing projects around waste management, utilities, collective purchasing and cross-selling.
How do we know that our
services are additional?
It is important to demonstrate that services are additional to those delivered by the local authority.
The steering group will include in the business plan a memorandum of understanding or service level agreement showing what services are delivered by the local authority in the proposed BID area.
Local authority services and, where relevant, other statutory authority services will be benchmarked at the beginning of the BID and monitored during the lifetime of the BID.
A standard pro forma is available
on the BIDs in Scotland website to help identify and benchmark statutory services.
Where did the BID concept come from?Born out of Town Centre Management Partnerships, the concept was originally set up in Canada in the 1960s, but took off in the US in the late 1970s.
The initiative has already been successfully implemented in New Zealand, South Africa, Jamaica, Serbia, Albania, England, Wales, Germany and Ireland and is now progressing in other areas of Europe.
There are over 1,400 in operation, ranging from the very successful New York Times Square BID to lesser known, but equally successful examples, such as the Keswick BID. BID supporters include the Association of Town Centre Management which originally brought the concept here from the US and introduced it to the UK government. BID legislation for England and Wales was enacted in 2004 and there are now 38 BIDs in place with more in development 83% of BID ballots have been successful. Legislation was introduced that allowed pilot BIDs to be undertaken in Scotland in 2007 and there are now a number of BIDs in progress across the country.
What role does business
play in developing a BID?Each BID is developed by business for business. Experience from elsewhere is that the initial development stages are brought forward by the public sector with private sector support and generally in areas where there existing private/public sector partnership.
Normally, a steering group or task group is established, made up of predominantly private sector individuals and some public sector representatives.
After consultation with the businesses, the steering group will identify the proposed geographical area to be covered, the issues to be addressed and projects to be included in the business plan.
The business plan will also set out the delivery mechanisms and performance indicators, as well as the BID governance and management structures.
How is a BID funded?
A BID is funded by business and tenants and, where agreed, property owners and through a levy calculated on the non-domestic rates valuation or in another method as agreed by the businesses.
The BID steering group will propose the levy rate in the business plan. The levy contributions could be made by a combination of tenants and property owners or by tenants alone. The levy can also be varied by location, by business size or by business sector.
The levy monies raised can only be used for the delivery of the BID business plan.
Everyone contributes and everyone benefits.
Are additional funding sources allowed?
The legislation allows for contributions to be made by other agencies and organisations and, dependent on the legal entity of the BID, it may be possible for applications to be made to other funding sources or additional revenue developed through a commercial venture.
What is the voting criteria for a BID?Each tenant and, if applicable, property owner who will be asked to pay the levy will be able to vote on whether or not that BID goes ahead.
A BID proposal in Scotland will only go ahead if more than half of the businesses vote in favour and they represent more than half the rateable value of the BID area.
A minimum turnout figure of 25% is also required.
These thresholds protect tenants and property owners, as well as large and small businesses.
Higher thresholds can be set by the steering group if it thinks this will help to reassure the wider business community in the area.
If the ballot is successful, the decision is binding on all the eligible businesses.
How long does a BID last?BIDs in Scotland operate under the Planning etc. (Scotland) Act 2006 and, following a ballot, have a maximum duration
of five years. The BID is then required to seek a new mandate from the businesses in the BID area. |
