WHAT IS SHREWSBURY BUSINESS IMPROVEMENT DISTRICT (BID)?
Shrewsbury Business Improvement District commenced on 1st April 2014 as a business-led and business-funded body, working to improve and promote Shrewsbury town centre as a place to live, work, visit and invest.
As a democratically elected, independent body, Shrewsbury BID enables more than 500 businesses to work collectively to influence and impact on how Shrewsbury town centre is managed and develops.
Shrewsbury BID was successfully voted in by businesses for a five year term and will run until 31st March 2019. A renewal ballot will take place in October 2018 for Shrewsbury BID to continue for a second term until 2024.
We are a Company limited by guarantee Registration No. 08834790 and operate under The Business Improvement Districts (England) Regulations 2004.
WHAT IS A BID?
A BID is a Business Improvement District that enables coordinated investment in the management and marketing of a commercial area.
BIDs are now recognised as the most sustainable model of place management with over 300 Business Improvement Districts (BIDs) in the UK.
Governed by legislation to ensure fairness and transparency, a BID is created for a five year period following a successful ballot.
To succeed at ballot the BID must pass a dual key mechanism – a majority by number and by size (RV) of those who vote and there is no turnout threshold.
HOW IS SHREWSBURY BID FUNDED AND MANAGED?
Shrewsbury BID is principally financed by a levy which is 1.5% of rateable value from eligible businesses and organisations within the BID area. Once a ballot is established in favour of a BID, the BID levy is mandatory for eligible businesses irrespective of how or whether they voted.
The BID levy is paid annually by the occupiers of a property and collected by Shropshire Council. It is then transferred to Shrewsbury BID for use on the projects and services agreed in Shrewsbury BID’s Business Plan.
BID businesses are represented by the BID Company which is governed by a voluntary board of directors from a range of sectors and organisations in the BID area. Levy payers’ views are regularly sought through feedback, forums and individual meetings.
HOW IS THE SHREWSBURY BID LEVY CALCULATED?
The BID levy is charged at 1.5% of rateable value of each hereditament within the BID area that has a rateable value of £10,000 RV or more, as at 1st April 2014. Businesses below this threshold are exempt from paying the levy. Following the 2017 revaluation of business rates, the BID has retaining the 2011 rateable values to calculate the BID levy.
For BID2, the BID levy is proposed to be charged at 1.5% of rateable value of each hereditament within the BID area that has a rateable value of £12,000 RV (in line with small business rates relief) on the prevailing ratings list. Businesses below this threshold will be exempt from paying the levy and therefore not receive a vote in the BID2 Ballot (as per the Business Improvement District Regulations 2004) but will be invited to be a voluntary member (see below).
CAN BUSINESSES BELOW THE LEVY THRESHOLD OR OUTSIDE THE BID AREA JOIN?
Whilst businesses under the threshold receive the halo benefits of the BID place marketing and improvement projects, we offer a Voluntary BID Membership which enables non-levy payers to be more involved.
As per the Business Improvement District Regulations 2004, Businesses who are below the threshold or outside the BID area and therefore not required to pay the levy, do not have voting rights in any formal ballot.
HOW IS THE LEVY SPENT?
Shrewsbury BID activity is delivered over and above the projects and baselined service levels provided by public agencies including the Local Authority and Police. The projects and services which will be delivered during the five year BID period are agreed and set out in Shrewsbury BID’s 2014 -2019 Business Plan.
Key performance indicators (KPIs) are defined and performance is monitored against these by the Shrewsbury BID Board and Working Groups.
The annual budget is approved through the Board of Directors and at each quarter thereafter the board revisits and reprofiles as necessary the expenditure per theme or project.
The Board of Directors receive regular advice regarding review and evaluation of projects from the management team prior to making further decisions on spend or reprofiling of expenditure.
HOW DOES SHREWSBURY BID REPORT ON PROGRESS AND KEEP MEMBERS UPDATED?
To keep members updated on activity and progress, Shrewsbury BID provides:
• Annual reports posted to your business and available in Key Documents
• Monthly email bulletins. If you don’t receive these please contact us
• Focus groups and sector forums
• One-to-one meetings with Shrewsbury BID’s Team and Directors
• Annual meeting
HOW DOES THE BID AWARD EXTERNAL CONTRACTS?
All contracts are awarded through the Board of Directors always utilising multiple quotes to ensure best value for money. In some cases contracts are awarded locally but this is not necessarily the first determining factor when making contract awards. Where a local supplier is used, due consideration is made regarding any possible conflicts of interest or vested interests.
HOW ARE BOARD DIRECTORS ELECTED
Shrewsbury BID has 18 positions on its Voluntary Board of Directors who are representative of levy payers in Shrewsbury. Board Director elections take place at our Annual Meeting in May each year where Directors can be re-elected.