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BID FAQs
The aim of a Business Improvement District (BID) is to fundamentally change the traditional approach to city centre management. A BID is a partnership between local businesses to provide additional services and improvements to the city centre. For the first time, businesses will genuinely control their trading environments, allowing them to solve issues that have previously acted as a barrier to business growth. By working together, a BID will add value to your bottom line by transforming your business trading environment.
The Worcester Business Improvement District is a business-led programme which seeks to make Worcester city centre:
Cleaner and Greener (Attractive City)
More Accessible (Getting Out and About)
Increase the Lobbying levels of Worcester BID businesses (United Voice)
A Safer City
How do BIDs work?
Businesses identify, prioritise and agree the BID projects.
51% of eligible businesses who voted in the ballot must support the BID in a postal ballot for it to happen both by number and rateable value. (We had 71% voting yes by number and 79% both rateable value). This dual majority ensures that small businesses have an equal say in the BID Ballot as the larger ones.
Once agreed every eligible business contributes proportionately regardless of how or if they voted or not.
Contributions are ring fenced with the charge fixed at the start.
The BID is 100% accountable to you and will last for 5 years.
The levy will be collected through the business rates. The business plan is based on a contribution of a percentage of the rateable value of each property which will be 1.5% (0.75% for those in a managed shopping centre, with those businesses receiving mandatory rate relief receiving an 80% reduction).
Who is liable to pay a BID levy?
Any person, registered company or charity/non profit making organisation who is the occupier/leaseholder or where the property is empty and a lease does not exist, the owner, of the non-domestic rated property within the BID Area is liable for the BID Levy. It includes those who did not vote or voted 'no' to the proposals and any business who has become eligible since the 18th September 2009 who is in the BID area and has a rateable value of over £7500 based on their 2010 rateable value.
Are there properties excluded from the BID levy?
Yes, there are a few types of properties that are excluded from the BID levy such as:
Those hereditaments with a rateable value of £7,500 or less (based on the 2010 rateable values)
commercial car parking spaces, aerials, mobile phone masts, advertising boards and hoardings
How is the BID levy calculated?
The BID levy will be between 1.5% of your commercial property's rateable value (except in respect of covered shopping centres where occupiers already pay a service charge eg CrownGate, Cathedral Plaza, Reindeer Court, where any relevant commercial property will be charged at 0.75% of the rateable value or 1% if you pay a pro rata service charge as you are located partly in a shopping centre eg. Boots, HMV, Debenhams).
The 2010 NNDR listings which came into effect in April 2010 at the same time as the BID went live. These figures are available from www.voa.gov.uk
How and when is the BID levy payable?
South Worcestershire Shared Service (Revenues and Benefits) who collect on behalf of Worcester City Council sent eligible businesses a BID levy invoice on behalf of the BID company. The BID levy is paid directly through to South Worcestershire Shared Service (Revenues and Benefits) who are acting as agents for the levy collection. This money is ringfenced and then 100% is passed on from them to the Worcester BID.
The South Worcestershire Shared Service (Revenues and Benefits) will send you a reminder. You will have a set number of days from the date shown on the notice to pay the reminder. If the BID levy remains outstanding after such a time, a final reminder will be sent. Then a summons will be issued for your appearance at the Worcester Magistrates Court where an application for a liability order and costs will be made.
Last updated: 10/09/2010 12:54:35
