Is Wolverhampton's Business Improvement District worth the money ?
“Business Improvement Districts (BIDs) are partnerships between local authorities and local businesses which are intended to provide additional services or improvements to a specified area”.
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN04591#fullreport
The setting up of a BID involves:
1. A proposal by a local authority or by a business ratepayer or by a company whose “purpose” is to develop the BID area or which has an interest in the land.
2. The proposal sets out the detail and the business plan including, the services to be provided, the size and “scope” of the BID, who is liable for the BID levy, its amount and how it is to be collected.
3. The proposer gives advance notice to the Secretary of State of the intention to put the BID proposal to ballot and then gives advance notice of the actual ballot.
4. The businesses in the BID area which are subject to the potential levy then take part in the ballot. The success or failure of the proposals depends on a majority of businesses (one business, one vote) and also on the rateable value of votes cast.
5. If the BID proposals are successful then the BID levy is charged on all businesses in the BID area.
6. The maximum period for which a BID levy can be charged is 5 years.
https://www.gov.uk/guidance/business-improvement-districts
I am therefore wondering which towns and cities do not have BIDs and why ?
It may be that a well managed local authority with sufficient funds is more likely to be able to provide “BID type” services from existing business rates. May be cash strapped local authorities are more likely to turn to BID to raise additional money from its businesses ?
Wolverhampton most recently balloted the city centre businesses between 27 September 2019 and 24 October 2019. It is understood that 78% of the business votes were in favour of renewing the BID for 5 more years with effect from 1 April 2020.
Also, 78% of rateable value of votes cast, were to renew.
I have heard murmurings about value for money. It may be this is because BID provides services which are not valued, particularly by small businesses. I would hope that BID engages with businesses to convince them of the “value” they receive for their levy and, perhaps more importantly, to ask the business what else BID can do in order to provide better value for the levy.
In September 2019, there were 3 pre-ballot “meet the team” drop in sessions. There were 2 on Wednesdays and 1 on a Thursday. They were at various times between 9:30 am and 5:00 pm. Small independent businesses with normal business hours, may have found it difficult to attend. Maybe a BID blog with a section for open comments would be a more efficient way of gathering views from the businesses.
My perception is that the Queens Square side of the city centre is better served by BID than the outdoor market side – except may be late night services to the casino.
Some consider that parking costs are a major deterrent to city centre visitors and could be an important reason for the number of empty units, particularly in view of competition from outside. It might be that the parking issue outweighs anything which BID is seeking to achieve. May be BID should consider balloting the businesses to see if there is support for diverting some of the BID budget in order to subsidise city centre parking costs and/or maybe support for any other changes.
https://enjoywolverhampton.com/bid/renewal/business-plan-2020-2025/
https://enjoywolverhampton.com/
Budget - March 2020 - update
In his Budget, the Chancellor announced a Business Rates holiday for small businesses. It is not yet clear as to whether or not the holiday will also apply to the BID levy, which is based on Rateable Value. If the BID levy is subject to the holiday then a central government subsidy is likely to be needed if the BID entity is to continue to provide services for all BID businesses.
“Business Improvement Districts (BIDs) are partnerships between local authorities and local businesses which are intended to provide additional services or improvements to a specified area”.
https://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN04591#fullreport
The setting up of a BID involves:
1. A proposal by a local authority or by a business ratepayer or by a company whose “purpose” is to develop the BID area or which has an interest in the land.
2. The proposal sets out the detail and the business plan including, the services to be provided, the size and “scope” of the BID, who is liable for the BID levy, its amount and how it is to be collected.
3. The proposer gives advance notice to the Secretary of State of the intention to put the BID proposal to ballot and then gives advance notice of the actual ballot.
4. The businesses in the BID area which are subject to the potential levy then take part in the ballot. The success or failure of the proposals depends on a majority of businesses (one business, one vote) and also on the rateable value of votes cast.
5. If the BID proposals are successful then the BID levy is charged on all businesses in the BID area.
6. The maximum period for which a BID levy can be charged is 5 years.
https://www.gov.uk/guidance/business-improvement-districts
I am therefore wondering which towns and cities do not have BIDs and why ?
It may be that a well managed local authority with sufficient funds is more likely to be able to provide “BID type” services from existing business rates. May be cash strapped local authorities are more likely to turn to BID to raise additional money from its businesses ?
Wolverhampton most recently balloted the city centre businesses between 27 September 2019 and 24 October 2019. It is understood that 78% of the business votes were in favour of renewing the BID for 5 more years with effect from 1 April 2020.
Also, 78% of rateable value of votes cast, were to renew.
I have heard murmurings about value for money. It may be this is because BID provides services which are not valued, particularly by small businesses. I would hope that BID engages with businesses to convince them of the “value” they receive for their levy and, perhaps more importantly, to ask the business what else BID can do in order to provide better value for the levy.
In September 2019, there were 3 pre-ballot “meet the team” drop in sessions. There were 2 on Wednesdays and 1 on a Thursday. They were at various times between 9:30 am and 5:00 pm. Small independent businesses with normal business hours, may have found it difficult to attend. Maybe a BID blog with a section for open comments would be a more efficient way of gathering views from the businesses.
My perception is that the Queens Square side of the city centre is better served by BID than the outdoor market side – except may be late night services to the casino.
Some consider that parking costs are a major deterrent to city centre visitors and could be an important reason for the number of empty units, particularly in view of competition from outside. It might be that the parking issue outweighs anything which BID is seeking to achieve. May be BID should consider balloting the businesses to see if there is support for diverting some of the BID budget in order to subsidise city centre parking costs and/or maybe support for any other changes.
https://enjoywolverhampton.com/bid/renewal/business-plan-2020-2025/
https://enjoywolverhampton.com/
Budget - March 2020 - update
In his Budget, the Chancellor announced a Business Rates holiday for small businesses. It is not yet clear as to whether or not the holiday will also apply to the BID levy, which is based on Rateable Value. If the BID levy is subject to the holiday then a central government subsidy is likely to be needed if the BID entity is to continue to provide services for all BID businesses.
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