Stockport BID Proposal FAQs Feb 2016

Stockport BID FAQ’s
Compiled by

Contents Page
• What is a Business Improvement
District?
• How is a BID set up?
• What is the BID levy?
• How will be BID be governed and
managed?
• How long will the BID last?
• How will I know what I am voting for?
• How will the BID save me money?
• How will the BID increase footfall in
the town?
• Do all types of business have to pay?
• What a BID won’t do
• What if I can't vote on the day when
the ballot is held because I am too
busy?
• Why has money been borrowed from
the government?
Frequently Asked
Questions

• A Business Improvement
District (BID) is a businessled
and business funded
body formed to improve a
specific area.
• BIDs were first established
in Canada and the US in the
1960s and now exist across
the globe, including in
South Africa, Germany,
Japan, New Zealand and
Australia.
• The first BID in Britain went
to ballot in December 2004.
• Since then the number of
BIDs in Britain has risen
steadily and there are now
over 185 BID’s in the UK and
the Republic of Ireland.
What is a BID?

• A BID can only be formed following
consultation and a ballot in which
businesses vote on a BID Proposal or
business plan for the area. All
businesses eligible to pay the levy are
balloted.
• In the UK, for a BID to go ahead the
ballot must be won on two counts:
straight majority and majority of
rateable value. This ensures that the
interests of large and small businesses
are protected.
• The BID Proposal will set out
businesses’ priorities for improvements
and services to be delivered in
Stockport, as well as how the BID
Company will be managed and
operated.
• The document becomes legally binding
once the ballot is won and will become
the framework within which the
independent BID Company operates.
• A baseline agreement will be made
with Stockport Council and other
service providers which set out the
level of service provision in Stockport.
This ensures that any services the BID
provides are truly additional.
How is a BID set up?

• BIDs are funded through a
BID levy, which is a small
percentage of a businesses’
rateable value.
• Most BID’s charge between 1
and 1.5%. Once a ballot is
successful the BID levy is
mandatory for all eligible
businesses.
• The BID levy is collected by
the local authority, usually
alongside business rates, into
a ring-fenced account and
passed to the independent
BID Company for use on the
projects and services set out
in the BID proposal.
What is the BID levy?

• The BID Company for
Stockport would be an
independent company, set up
for the purpose of delivering
the activities in the agreed
business plan.
• Such companies are often set
up as a Not For Profit
Company limited by
guarantee.
• The BID is governed by a
board made up of BID levy
payers.
• Usually BIDs employ a BID
manager.
• Frequently they employ
other staff such as marketing
and events or street
wardens.
How will the BID be
governed and managed?

• BIDs operate for a
maximum of five
years.
• If they wish to
continue they must
go through a
renewal ballot
process to secure
another BID term
of up to five years.
How long will the
BID last?

• At a certain point in
Autumn 2016, after all the
consultation responses
have been received and
analysed, two final
documents, a BID Proposal
and a Business Plan will be
distributed. Between
them, they will say exactly
which ideas are going to be
carried through, how much
we think they will cost and
how much it will cost you
as a business.
• These documents will be
delivered in printed form
to every voter so they can
see exactly what they are
making a decision on.
How will I know what
I am voting for?

• We are looking at finding a company
that specialises in helping BID levy
payers save money on utilities and other
supplies. They do not work on
commission and only help businesses
who invite them to do so.
• It is possible that using this service we
could to make the BID cost neutral for
some small businesses; that is for you to
save at least the amount paid out in BID
levy, meaning a ‘Yes’ vote is a no-brainer.
We believe that this service will be
popular for those businesses too busy to
spend the time chasing the utilities
companies to get the best deal.
• The power of a whole town working
together could make it easier to get
good deals on your basic business costs.
We could also look at waste collection
and recycling schemes or working with
local technology or marketing
companies. Let us know which business
costs you think we should also look at.
How will the BID save
me money?

One of the ways in
which the BID
Company could use
the fund created, is
to create events
that compete
locally; raising the
profile of the town
and bringing in
shoppers.
How will the BID increase
footfall in the town?

• The BID Proposal will set
out which businesses need
to pay the levy.
• For example, the
consultation may tell us that
only retail businesses
should be subject to the
levy, or perhaps charities
should be exempt, or not.
• However, once the
businesses in an area have
voted 'Yes' to a BID, all the
commercially rated
properties covered by the
BID rules will have to pay.
• It will be treated like the
non- payment of business
rates.
Do all types of businesses
Potential BID Area
have to pay?

• A BID cannot be used to
replace existing council and
other public sector services.
• There is legislation in place
to ensure that a BID must
provide services that offer
added value to what the
public sector does.
• A BID cannot be used to
fund the services the
council already operates;
instead it will be spent on
additional or improved
services.
• The council will write a
baseline agreement with
the BID which will outline
the services that the council
already provides and the
BID will only spend money
on services that are in
addition to this.
What a BID won’t do

If you can't vote on the
day when the ballot is
held because you’re too
busy, you can still have
your say:
• The ballot takes place
over 28 days and you
can post your voting
papers back or pop
them in a locally
placed box.
• So long as you send
• So long as you send
them in sometime
during the 28 days
your vote will be
counted.
I’m unavailable
on voting day…

• The process of bringing in a BID
involves some complex work to
administer and follow the letter of
the law laid down in an act of
parliament in 2003.
• The ballot has to be organised with
the same rigour as a parliamentary
election. For this reason we need to
pay for work to be done, training to
be received and a technical advisor
to make sure we are running
everything in a legal manner.
• There will also be costs relating to
the printing of the BID Proposal and
Business Plan; the information you
will need to make sure you can cast
your vote with confidence.
• Of course, the BID team will look for
savings and partnerships wherever
possible to keep costs low.
• If the result of the ballot is a 'no' vote
the government write off the loan
and nothing needs to be repaid.
Why has money been borrowed
from the government?

If you have any further
questions please contact: