How BIDs are set up and operate
A Business Improvement District can be set up by the local authority, a business ratepayer, or a person or company that wants to develop the area or has an interest in the land in the area.
The Business Improvement District proposer is required to develop a proposal and submit this to the local authority, along with a business plan.
The proposal should set out the services to be provided and the size and scope of the Business Improvement District. It will also set out who is liable for the levy, the amount of levy to be collected and how it is calculated.
The ballot proposer should notify the local authority and the Secretary of State of their intention to put the BID proposal on the ballot at least 84 days before submitting it.
At least 42 days before the final ballot date, the ballot holder should publish a notice stating the date of the ballot and send a copy to the Secretary of State.
Businesses that are subject to the levy, as set out in the proposals, vote in a ballot. This determines whether the scheme goes ahead.
A successful vote is one that has a simple majority both in votes cast and in rateable value of votes cast. Each business entitled to vote in a Business Improvement District ballot is allowed one vote in respect of each property occupied or (if unoccupied) owned by them in the geographical area of the Business Improvement District.
Once the Business Improvement District is in operation the levy is charged on all businesses within the Business Improvement District area (regardless of whether or how that business voted in the ballot).
See further guidance on how to establish a Business Improvement District.