BID FAQ's

 

In this section you will find answers to many frequently asked questions. If you feel that you have a question that is still unanswered please get in touch with us via the Contact Us section.

 

What is a Business Improvement District?

A Business Improvement District (or BID) is a business-lead initiative whereby businesses get together, decide what improvements they want to make to their area, how it will be managed and what it will cost. This is developed into a business plan with proposals for funding. The investment is raised by placing a small levy on the existing business ratesand is presented as a proposition. A formal ballot is then held and every business that would pay the levy is given  the opportunity to vote.

 

Where else are there BIDs?

BIDs have been successfully operating in the US and Canada for many years and are increasing in popularity in the UK. Over 100 established BIDs now invest millions of pounds in their areas. In the North East, a BID has been established since 2008 to improve the Longhill and Sandgate Industrial Estate in Hartlepool, and more recently Newcastle NE1 has been established as a BID company to drive forward the city centre. Elsewhere, BIDs are operating in Plymouth, Lincoln, Bedford, Blackpool, Rugby, Ipswich, Hull, Nottingham, Swindon, Derby, Preston, Worcester and more recently have been approved in Bury, Solihull and Mansfield.

 

Does Middlesbrough need a BID?

Some businesses think that a BID would represent a good investment proposition. This could allow new initiatives and projects to be implemented to compete with out of town retail and leisure parks as well as nearby towns and cities. E-commerce continues to grow and we need to continue attracting shoppers and visitors to Middlesbrough town centre.

 

Growing evidence from other areas in the UK suggests that as well as being able to address specific issues which affect business profitability and growth, being included within a BID helps to improve business confidence, attract inward investment into the town centre, help to reduce business costs through collective buying power and promotes economic growth and employment creation.

 

What might a BID deliver?

A BID can deliver a number of projects or services that the relevant businesses wish to see delivered. However, as a BID is independent from the local authority, the improvements will add to what the local authority already does, but not in any way replace it. There are a wide variety of things which BIDs have funded in other areas and there are some examples in the case studies detailed in the further information section of this mini-site.

 

Currently, BIDs in the UK address a range of things including marketing and promotion, security for businesses and customers, better transport and access arrangements and cleaner streets as well as other operational matters in addition to existing local authority services.

 

Following discussion with the Town Centre Partnership, consultation workshops carried out during the development of the Town Centre Strategy and business consultation in looking at the feasibility of a Middlesbrough BID three key priority themes have been suggested:

 

Promoting Middlesbrough – raising the profile of the town centre and encourage more higher-spending visitors by investing in initiatives that would increase marketing, promotion, advertising and events;

 

Protecting Middlesbrough – working with the local authority and police to ensure that the town centre is cleaner, safer and greener by initiatives such as street washing, improved management of the night-time economy and planting schemes;

 

Progressing Middlesbrough – improve and diversify the offer of the town centre by initiatives such as further pedestrianisation, attracting more cafes and restaurants, and improving the signage and environment at key entrance gateways.

 

However, these are by no means fixed and through this consultation we want your views about the improvements and services you believe will really help your business to grow and thrive. We want to know what you’d like a Middlesbrough BID to deliver.

 

Who is developing the BID?

A BID can be proposed by any business ratepayer, property owner, local authority or other key stakeholder with an interest in the BID area. Currently the development of the BID is being taken forward by the Town Centre Management Team in consultation with the Middlesbrough Town Centre Partnership. The Partnership is a collaboration set up to ensure that all relevant stakeholders, both public and private sector, have a voice in managing and guiding the future development of Middlesbrough Town Centre over the coming years.

 

Through this consultation process we’d like to identify key stakeholders within the BID area who would like to be pro-actively involved and participate. This will enable a BID Steering Group to be established to help develop the BID and potentially form a Middlesbrough BID Management Board.

 

How will the BID be managed?

There are a number of models which could be adopted for a BID but the over-riding principle is that the BID should be business controlled and directly responsible to those that pay the BID levy. Currently, some of the most successful BIDs are managed as a company limited by guarantee, which is responsible for the delivery of the BID projects and services, and accountable to its business membership through an elected board of members.

 

Who pays for a BID?

Once businesses have decided what initiatives and improvements they want to make to the area then projects and services are costed. This is detailed in a business plan, including proposals for how to pay for the delivery of the proposed initiatives. This is usually in the form of a ‘BID levy’ which is a small charge (usually between 1% and 2%) of business rates within the defined BID area. In some BIDs a threshold is introduced to support small businesses.

 

A formal vote then takes place with businesses in the proposed BID area. All those liable to pay the levy are eligible to vote and if the majority vote in favour, by number and rateable value, then all businesses within the BID area will pay. It is normally the occupiers of the property, i.e. the business rate payer, that pays the BID Levy and is eligible to vote.

 

In addition, BIDs can draw in other voluntary funding from property ownersor public sector bodies and can raise additional revenue through delivering services on behalf of other organisations.

 

However, unlike business rates, none of the BID levy money goes to Centre Government. All of the money collected from businesses within the BID area remains in the area and is spent on projects you want to see delivered.

 

How does an area become a BID?

The first stage is normally to engage and consult with businesses within the proposed BID area to identify the improvements they would like to see delivered. As part of this process a BID Steering Group is established of representatives from the businesses in the BID area who put together a detailed Business Plan setting out the projects and services it aims to deliver.

 

The Business Plan will include the projects, cost, delivery guarantees, performance indicators and the management structure. A confidential postal vote is then delivered to all the businesses that would pay the BID levy. To protect the interests of large and small businesses, a majority of those that vote must be in favour, by number and rateable value.

 

The Middlesbrough Town Centre Partnership has been acting as a pre-BID Advisory Group to help advise and shape the work and will continue to do so until more a formal BID Steering Group can be established.

 

How long does a BID last for?

Following a successful ballot then the BID will have a mandate for a maximum of 5 years after which it needs to seek re-ballot if it wants to continue.

 

Does a BID mean that Middlesbrough Council will stop delivering services?

No, the local authority remains committed to continuing to delivering services in Middlesbrough Town Centre and this is not about a BID being used to replace local authority funding for the town centre but about businesses working together and making an investment in those things which will benefit their business.

The money from the BID levy can be used for projects and services which are additional to those that public sector bodies provide. Whilst also engaging and consulting with businesses about the BID, the Town Centre Management Team will also be working with public sector bodies, including the local authority, the police and others to establish and benchmark the current quality of services being delivered in the area. It will then be expected that this level of service will be maintained for the period of the BID demonstrating the commitment of the public sector.

 

How is the BID monitored?

The Business Plan proposal will include Key Performance Indicators (KPIs) which the BID will seek to achieve over its life. Performance against these key indicators will be monitored by the BID Board and reported regularly to all businesses within the BID area to demonstrate what the funding is being used to deliver.

 

How will I get chance to express my views and opinion?

We want your views and opinions and we’re going to create a number of ways for you to get involved and express your views and opinions.

 

We’ve also established this website to provide you with further information and updates over coming weeks. We’d like to meet you to discuss this further and gather your views and opinions so please contact us or come along to one of the events we’re organising.

 

How do I become actively involved in this?

As well as expressing your views and opinions, we’re also looking for Steering Group members to help shape further discussion and development of a BID, so if you want to be actively involved please do not hesitate to contact us.

 

When is this likely to happen?

The first stage is to consult with businesses about what improvements they’d like to see and collate these into a list of options. The Steering Group will then help to shape this into a Business Plan and this will be presented for further consultation. If Businesses seem broadly happy with the proposal then this could proceed for formal vote.