Business Improvement Districts (BIDs)
A Business Improvement District (BID) is a business-led and business funded body formed to improve a local area.
The BID is created through a ballot process and is intended to provide additional services or improvements to the local area over and above the services already provided by a local authority.
If the required majorities are achieved, the BID is ‘live’ and becomes a legal entity. A mandatory levy is then charged each year in addition to Business Rates demands.
The ballot
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 BID ballot is allowed one vote in respect of each property occupied or, if unoccupied, owned by them in the geographical area of the BID.
We employed independent companies to carry out the votes in the BID areas.
It is not possible to report who voted and whether the vote was in favour of the BID.
Garratt Business Park
Voting results:
- Total number of valid votes cast: 62
- Total aggregate rateable value of valid votes case: £1,483,600
- Total number of valid votes in favour of the BID: 58
- Total rateable value of valid votes in favour of the BID: £1,279,850
Junction
Voting results:
- Total number of valid votes cast: 113
- Total aggregate rateable value of valid votes case: £10,656,100
- Total number of valid votes in favour of the BID: 84
- Total rateable value of valid votes in favour of the BID: £8,974,000
Positively Putney
Voting results:
- Total number of valid votes cast: 137
- Total aggregate rateable value of valid votes case: £10,874,740
- Total number of valid votes in favour of the BID: 103
- Total rateable value of valid votes in favour of the BID: £7,993,240
Wandsworth Town
Voting results:
- Total number of valid votes cast: 83
- Total aggregate rateable value of valid votes case: £6,587,400
- Total number of valid votes in favour of the BID: 61
- Total rateable value of valid votes in favour of the BID: £5,438,900
Our role
BID legislation requires local authorities to be the billing and collection body. All revenue collected is paid directly to the BID operating company.
We receive a set fee for administering the BID.
How the BID operating company spend the money collected
During the ballot process the BID operating company will set out the BID business plan, BID proposal and operating agreement. These form the BID Arrangements which are the basis for the projects to be financed by a levy being imposed on business rates payers.
A BID Arrangement is not a specific document, it simply refers collectively to the BID Business Plan, the BID proposal, or BID rules, and the operating agreement.
The BID operating company publishes details of its spending and will pay for specific services and functions which may be on top of services that we provide. These additional services are decided by the BID operating company in consultation with all businesses in the BID footprint and are designed to increase footfall and consumer spend.
Details of this process can be found on the website for each BID:
Businesses that must pay the BID Levy
All liable businesses in the BID area will receive a BID bill on the anniversary of the levy. Each BID has defined rules on which businesses are to be included:
Garratt Business Park
As a levy on top of business rates, annually, beginning 1 April 2024, businesses will pay a set fee dependent on their 2023 rateable value - for example businesses with a rateable value between £4,001 and £8,000 will pay £125. The maximum a business will pay per annum, is £2,720.
Junction
Businesses whose premises have a rateable value of £30,000 and over, pay 1.75% of the 2023 rateable value as a levy on top of business rates, annually, beginning 1 April 2024. Business subject to a service charge at managed shopping centres and charitable organisations will pay a reduced levy.
Positively Putney
Businesses whose premises have a rateable value of £12,000 and over, pay 1.25% of the 2017 rateable value as a levy on top of business rates, annually, beginning 1 April 2022. Business subject to a service charge at managed shopping centres and charitable organisations will pay a reduced levy.
Wandsworth Town
Businesses pay 1.58% of the 2017 rateable value as a levy on top of business rates, annually, beginning 1 April 2022. There is a cap on the BID levy, so the maximum a business will pay per annum, irrespective of the size or rateable value of its premises, is £15,000. All charities will be exempt from a charge.