Basingstoke Together represents approximately 500 hereditaments (business properties) and generates an annual investment for the Town Centre which is supplemented by additional cash and in-kind contributions each year. The investment is ring-fenced for the Town Centre and committed to the delivery of the Business Proposal.
All businesses within the BID area will financially support the delivery of the five year Business Proposal via a levy charged each year. Businesses within the area will be subjected to the BID Levy Rules below.
BID LEVY RULES
WHO PAYS AND WHO COLLECTS THE MONEY?
The BID levy is on business occupiers ie. business ratepayers, rather than property owners. This is in line with the business rates system and differs from BIDs elsewhere in the world where the levy is on property owners.
The BID levy is collected by the local authority into a ring-fenced account (called the BID Revenue Account) and passed to the BID Company for use on projects and services set out in the BID proposal.
HOW MUCH WOULD I HAVE TO PAY?
A BID is funded through the BID levy, which is a small percentage of a business’ rateable value. Depending on your location within the Town Centre, this will determine how much you will pay per annum. If you are within Festival Place you will be charged 0.95%, if you are in the Malls you will be charged 1.1% and if you are positioned outside of the two shopping centres you will be charged 1.4%. These lower rates are to take into account services already being provided by shopping centre management that overlap with services that the BID will provide. Assuming your business has a rateable value of £20,000 you would pay £190 (Festival Place), £220 (The Malls) or £280 (rest of the town centre).
Once a ballot is successful the BID levy is mandatory for all eligible businesses. BIDs can choose to exclude certain businesses from paying the levy (and therefore from voting in the BID ballot). Many BIDs exclude charities or the smallest businesses in that area; some exclude certain business sectors or types of business. In Basingstoke, a number of hereditaments are exempt from paying the levy as stated above. Businesses not automatically eligible can become associate members of Basingstoke Together by financially contributing to the BID.
BIDs are often successful at attracting funding in addition to the BID levy, in particular from public sector grant making bodies (such as Regional Development Agencies) due to the private sector match-funding available through the BID levy. Local authorities, property owners, and businesses outside the BID area have all provided additional income for BIDs.
ISN’T IT JUST ANOTHER TAX?
No. The money does not go to the Central Government or Basingstoke and Deane Borough Council. Funds are ONLY for the projects agreed and voted for by the participating businesses.
HOW DO YOU ENSURE BIDS ADD VALUE?
BIDs enter into baseline agreements with the local authority and other service providers which guarantee the level of service provision in the area. These ensure that any services the BID provides are truly additional.
An Operating Agreement is also entered into between a BID and their local authority governing how the BID levy monies are collected and administered and passed over to the BID.
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