Find out more about BIDs

Littlehampton Business Improvement District


Introduction

In the face of strong competition both locally and regionally it is essential that Littlehampton remains both attractive and competitive as a town for visitors and shoppers. The TCAG (Town Centre Action Group) and the LTP (Littlehampton Traders Partnership) have worked hard over recent years to ensure the continued development of the town and through these parties a number of businesses have joined together to look at the possibility of developing a Business Improvement District (BID) for Littlehampton.

As part of this we have been talking to you at this early stage about possible improvements that you might like to see which would help your business operate, perform better and grow. Firstly let's explain briefly what a BID is and how your business can be involved in the process.

The history of BIDs

The BID (Business Improvement District) idea has been incredibly successful in the United States and Canada with nearly 2000 of them helping powerfully to improve business. In the UK a pilot scheme was run in 2004 and has been so successful that the 50th BID was reached recently. Although most UK BIDs are currently in town centres, the principle works just as well in other places, and there are already BIDs established in industrial estates with considerable further interest. There are a number of BIDs running nationally and locally including Brighton and many others under consideration by neighbouring towns.

What is a Business Improvement District (BID)

A Business Improvement District (BID) is a process whereby businesses get together and decide on the improvement projects they want to see happen, how they are going to manage them and how much they are going to pay for it (the BID Levy). BIDs allow businesses in a defined area, in this case Littlehampton Town Centre, to vote on which additional services they want to invest in, to improve their trading environment.

These are set out into a legally binding Business Plan. This will then be sent out to all businesses to vote on. If the majority vote yes the annual BID levy will be mandatory on everybody for up to 5 years maximum.

The Proposed Study Area;

Why should you want to know about BIDs?

BIDs give businesses the power to improve their trading environment in ways that will draw more visitors and increase trade. BIDs offer a fair and affordable way to raise substantial funding for major projects removing the opportunity to freeload.

BIDs can deliver your business additional services that the Council does not and is not obliged to provide.

Who will manage the BID?

The local business community forms a BID working group that decides what the BID will include in terms of benefits and geographical boundaries. A business plan is then drawn up detailing the improvements and presenting a budget.

In the case of Littlehampton Town Centre the BID Development is being managed by TCAG and LTP. If a full BID is voted for normally a company limited by guarantee could manage it. This company will normally have a Board of Directors elected annually from the businesses. A partnership board together with a BID manager will ensure projects are coordinated and delivered on time They will have total responsibility to ensure that the money is spent on the agreed projects. If you are interested in being part of this then please contact us.

Where you can get more information about BIDs? You could visit the following web sites:

So who decides which projects happen?

If the decision to develop a BID this is taken then there will be detailed consultation over a 3-6 month period with all the 249 businesses in the catchment area of the town centre. What kind of projects are there?

Business can choose any project they want but it normally falls into the following categories.

So how much is it all going to cost?

There are 249 businesses within The Town Centre area with a total Rateable Value of £3,194,415. The current rates multiplier is .44p in the £, therefore the current rates collectable is £1,405,543

The amount raised would be determined by what projects you and your business colleagues want but as a very rough guide a small business is likely to pay between £0.07p and £0.41p a day while big ones will pay between £2.36 and £11.81 a day.

But how will my business benefit?

Most business will make a decision to vote YES if they think the project will give them a return on the BID Levy they have to pay. There are 3 main ways this is likely to happen.

What other benefits are there in a BID and who gains?

1. THE COMMUNITY / EVERYONE

2. BUSINESSES / THE OCCUPIER

3. THE LANDLORD

Maybe then...but shouldn't the Council be doing these things through Business Rates?

The BID money cannot legally do anything that the Council's Business Rates pay for. Your money will be spent entirely on the ADDITIONAL projects you have chosen. The whole thing will be controlled by you as well through the independent Company

When will I Vote?

The process takes about 18 months to develop and there will be lots of contact with businesses before so please look out. The ballot itself will take place through a postal vote. It will be conducted independently & confidentially by Electoral Reform Services.

How is a BID started?

Businesses are surveyed to find out what they would like to improve or change. We carried out this survey last year and over 50 businesses have so far responded. It is still not too late to add your voice and the responses so far have highlighted a number of areas which are detailed in the attached document.

The cost of the improvements will be determined and how much each business will have to pay. Every rate paying business will then be asked to vote on the proposals.

Whether a BID goes ahead depends on two things:

A majority of those voting have to vote 'yes'. The 'yes' votes have to represent at least 50% of the Rateable Value (RV) of those businesses.

How will the money be raised?

Once the vote has been passed the local authority will collect a supplementary levy on the business rate (NDR) and this amount will be given to the BID. The levy proposed must be clearly specified in the business plan. The levy will be a percentage of the RV. No limit has been set for this percentage but most BIDs ask for a levy of 1% or 2%. The levy may also be capped at the upper and/or lower levels. Other non-ratepaying beneficiaries (e.g. property owners, transport operators) can be encouraged to make voluntary contributions.

Based on the current Ratable Value Littlehampton Town Centre may be able to invest in projects to the values shown below on an annual basis.

BID Levy (%)

Levy Rate Total Levy Raised Unit Average
1% £14,055 £56.45
2% £28,111 £112.89
3% £42,166 £169.34
5% £70,277 £282.24
10% £140,550 £564.48

Will the local authority contribute?

The Council may make a contribution to show its commitment. It will incur expenses in running the referendum (only the Council can do this to make sure it is fair and above board) and staff time. However, BIDs will be business led with expenditure decided by business owners not the local authority.

How long will a BID last?

There is no recommended length of time but it cannot exceed five years. When a BID comes to an end it can be extended or renewed but this must be approved by a new vote.

If you want to find out more about the BID for Littlehampton then please contact either: