WHAT IS SHREWSBURY BUSINESS IMPROVEMENT DISTRICT (BID)?
Shrewsbury Business Improvement District is one of more than 300 UK BIDs which, through a partnership of levy-paying members, works to improve business in the town centre of Shrewsbury. Founded in 2014, by the businesses which went on to become its members, Shrewsbury BID delivers a range of projects and services to promote the town, save costs for businesses, improve the trading environment and give a strong voice to businesses on key issues affecting them.
Shrewsbury BID is a democratically elected not-for-profit organisation, governed by a voluntary board of Directors representative of the town’s businesses. This enables more than 500 businesses to work collectively to influence and impact on how Shrewsbury town centre is promoted and managed and developed. The dedicated Shrewsbury BID Team works to deliver projects and initiatives outlined in the Business Plan that benefit the businesses in the local area. BID levy payers’ views and ideas are regularly sought to improve the BID’s projects and services.
In October 2018, Shrewsbury Business Improvement District was renewed for a five-year term, from 1st April 2019 to 31st March 2024.The Renewal Ballot was administered by Shropshire Council, in accordance with the Business Improvement District Regulations 2004, and was successful after 88% of businesses (91% by rateable value) voted in favour of the BID2 Business Plan Proposal. For full Renewal Ballot details shrewsburybid.co.uk/BID2
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 Business Improvement District (BID) is a business-led and business-funded body formed to invest in and improve a trading environment. A BID enables businesses to work collectively to decide what improve-ments they want to make in their area. As a democratically elected, independent body, ultimately a BID gives businesses greater influence and impact on how their town is managed and develops. There are over 300 BIDs established across the UK including Chester, Bath, Aberystwyth, Oswestry, Stafford and Leamington Spa.
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 1.56% 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.
HOW IS THE SHREWSBURY BID LEVY CALCULATED?
The BID levy is charged at 1.56% of rateable value of each hereditament within the BID area that has a rateable value of £12,000 RV or more on the prevailing values on the 2017 Rating List. Businesses below this threshold are exempt from paying the levy but can choose to become voluntary members.
DOES THE LEVY INCREASE ANNUALLY IN LINE WITH INFLATION?
The levy may increase by an annual inflationary factor of up to 2% (i.e. from 1.5% multiplier to 1.52% in year 2 and so on). In 2022, the Shrewsbury BID Board decided to increase the levy multiplier from 1.54% to 1.56% for year 4 of its term to take account of the inflationary increases on the BID’s own operating costs.
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 set out in the Business Improvement District Regulations 2004:
- Businesses who are below the levy threshold or outside the BID area and therefore not required to pay the levy, do not have voting rights in any ballot of members during the current term 2019-2024.
- The BID levy rules and BID area for any future BID proposal will determine which businesses will receive a vote in any future BID term proposal.
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 2019 -2024 Business Plan.
Key performance indicators (KPIs) are defined and performance is monitored by the Shrewsbury BID Board and Project 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 the 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
CAN I OPT OUT OF THE BID LEVY?
No. The BID arrangements are legally binding for non-domestic ratepayers in the BID area who meet the criteria set out in the Shrewsbury BID Business Plan.
WHAT IS THE ESTIMATED ANNUAL TOTAL REVENUE TO BE RAISED FROM THE BID LEVY?
The estimated total revenue to be raised from the BID levy in 2022/23 is £330,000 with additional project income for the BID of £365,000 also confirmed.
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.