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BID Leamington Business Plan 2018-2023

A Proposal for the Renewal of the Leamington Business Improvement District


THE BID LEVY BID LEVY RULES The BID process is governed by the 'Local Government Act 2003' and ‘The Business Improvement District Regulations 2004'. Accordingly, once a majority vote has been achieved, the BID levy becomes mandatory on all defined ratepayers. 1. The Renewal BID term will be five years and run from the 1st July 2018 - 30th June 2023. 2. The BID levy will be applied to all non-domestic properties or hereditaments with a rateable value of £15,000 or more. This represents no change to the threshold. The number of properties or hereditaments liable for the levy have changed from 375 to 355 (at the time of print) as a result of changes to ratable values and property mergers / splits. 3. Properties that do not have or support a retail or leisure proposition, as defined by the valuation office ‘category’ will be exempt from the levy. This includes the use and premises categorised as office and premises, law courts, factories, police stations, schools, nursery schools, surgeries, workshops, vehicle repair, communication stations and premises. 4. From 1st July 2018, the NNDR rating list 2017 will apply. The levy rate to be paid will be fixed at 1.6% of the rateable value as at the selected ‘chargeable day’ (1st July annually). This represents a change of 0.1% reflecting the significant drop in combined ratable value across the town as a result of the 2017 national business rate revaluation, and gives a total BID Levy income which is slightly less than the first and second term of the BID. 5. The levy will be charged annually in advance for each chargeable period to be 1st July to 30th June each year, starting in July 2018. No discounts or refunds will be made. 6. Annually the Board will have the discretion to add up to 2% (0.02) inflation on to the levy rate, for example year two the levy rate could be a maximum of 1.62% and year three a maximum of 1.64%. (e.g if the annual levy bill is £240, it would increase by no more than £3 per year). Negative inflation will not apply. 7. The liability of the levy will fall on the eligible ratepayer listed on the 1st July in the year of collection. The owners of untenanted properties or hereditaments will be liable for payment of the levy. 8. There will be no VAT charged on the BID levy. 9. Charitable organisations that are subject to Warwick District Council mandatory relief on their business rates liability are exempt from the levy except those that have a retail function or operation. 10. The rating revaluation proposed for 2020, or any other date within the five year BID term, will be ignored for the purposes of calculating the levy. 11. The exception to this will be variations to the rating list after 1st July 2018 due to any change of use or a physical change to a property or hereditament including inter alia; new construction, merger, subdivision, extension and refurbishment which result in the issue of a new entry (entries) in the Ratings List at that time. 12. If, during the term, the rateable value assigned to a property or hereditament falls below £15,000 for whatever reason (either through physical change, change of use, or revaluation arising from the adoption of the 2017 Rating List), the hereditament will be exempt from the levy from the next chargeable period. 13. If, during the term, a property or hereditament with a rateable value which had previously been below the £15,000 threshold is assigned a rateable value which is above £15,000, the hereditament will be liable for the levy. 14. Warwick District Council will be responsible for collection of the levy. Collection and enforcement arrangements will be similar to those for the collection and enforcement of non-domestic business rates with the BID company Board responsible for any debt write-off. 28

BUSINESS PLAN 2018-2023 THE LEVY THRESHOLD Businesses of all sizes are important to us. We recognise that many small businesses in the town contribute to the independent offer that makes Royal Leamington Spa so unique, while facing increasing economic burdens. For this reason, the property value threshold for which the BID levy becomes mandatory will remain at £15,000. Business with a property value below £15,000 can choose to contribute as a ‘voluntary member’ and benefit from defined BID services, if they wish. YOUR BID LEVY The following table sets out what the levy would be based on the size of your business. This is calculated at 1.6% of the rateable value of the property. To calculate the levy simply multiply the rateable value of the property by 0.016. If you are unsure about the rateable value of your property please contact the Valuation Office on 03000 501501 or visit their website: VOLUNTARY MEMBERSHIP A voluntary membership scheme for businesses falling beneath the levy threshold is now well established. This gives smaller businesses the opportunity to engage with, and benefit from the BID whilst not being compelled to pay a mandatory levy. For those voluntary members, the annual contribution will be calculated at 1.6% of the rateable value of the property, with the minimum contribution of £100.00 per year, plus VAT. Representation on the BID Board of Directors from a maximum of two voluntary members is invited. Specific BID services available to ‘Voluntary BID members’ are broadly the same as BID members, however there may be small variances as agreed by the Board of Directors to reflect their contribution. The BID Levy SERVICE MEMBERSHIP & SPONSORSHIP A service membership scheme exists for businesses outside the BID Boundary and located in the Town Centre area (as defined by the local plan). This provides the opportunity for those businesses to benefit from defined BID services such as the Royal Leamington Spa website. The annual contribution will be agreed by the Board of Directors to reflect the delivery costs. Other services may be offered where they are considered to add value to the town’s offer. A sponsorship scheme for companies that wish to take a more active role in supporting the town centre is also established and reviewed on an annual basis. Contributions for Voluntary BID membership, Service membership or Sponsorship are subject to VAT. Rateable Value Annual Levy (1.6%) Cost Per Week £7,500 £120.00 £2.30 £10,000 £160.00 £3.08 £15,000 £240.00 £4.62 £20,000 £320.00 £6.15 £30,000 £480.00 £9.23 £40,000 £640.00 £12.30 £50,000 £800.00 £15.38 £100,000 £1600.00 £30.76 £200,000 £3200.00 £61.54 Please note, the shaded area indicates the levy amount that would apply to a voluntary member with a rateable value below £15,000. 27 29

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