New legislation that came into effect in September 2004 enable BIDs to be set up in England and Wales.
A Business Improvement District is a partnership between a local authority and the local business community to develop projects and services that will benefit the trading environment within the boundary of a clearly defined geographical area. By the begining of 2008 over 60 Business Improvement Districts had been established across England, Wales and Scotland
BIDs allow businesses to vote on which additional services they want to invest in.
The vote is open to tenants – if a majority, both by number and by rateable value, approve the proposal, all ratepayers will contribute through their business rates.
Improvements may include extra safety/security, cleansing and environmental measures, improved promotion of the area, improved events, and greater advocacy on key issues, but the legislation does not put a limit on what products or services are provided.
Businesses have the opportunity to agree on the projects for which they are contributing and to vote in a ballot on the amount of money they are prepared to raise, enabling them to become involved in the administration of the schemes themselves.