FAQs

A Business Improvement District (BID) is an arrangement whereby businesses come together and decide which improvements they feel can be made in their area, how they will implement these improvements and what they are prepared to pay (BID Levy) to make it happen. A Business Plan is created, through consultation. Those businesses who would pay the BID Levy then get a vote to decide whether they want a BID. If the majority of those voting say yes by number and rateable value, the BID legally comes into being and all those in the BID area will have to pay. The BID lasts for a maximum of 5 years and is financed and controlled by the businesses within the defined area. BIDs deliver additional projects and services over and above those already provided by public bodies.

YES - Since 2004 when this legislation was introduced, there have been over 340 BIDs developed in the UK, which will bring in over £150 million of new finance to develop their locations. Birmingham already has 11 BIDs with the nearest being Southside.

IT’S UP To YOU. The BID can deliver any projects or services that are agreed by the businesses in the BID area, but they must be over and above anything that the public sector is required to provide through your business rates. Most BID projects include marketing and promotional activities, improving access and facilities, welcome and safety measures, attracting new businesses and investment, reducing costs, and enhancing the visitor experience. The important thing is that the BID is focused on operating and delivering the initiatives that are determined through detailed consultation with all of businesses in the BID area.

TO IMPROVE YOUR BUSINESS AND THE AREA. A BID allows businesses to raise a sum of money to collectively manage and deliver projects that they have identified and believe will improve their trading environment, providing a return to those who are paying for the improvements.

BY LOCAL BUSINESS OWNERS - Like any good business plan, specific key performance indicators (KPIs) are set, and performance is monitored against these KPIs by the BID Board. The BID company is answerable to the businesses that pay the BID levy and will be required to monitor and inform its members on progress towards the agreed KPIs.

BY LOCAL BUSINESS OWNERS - BIDs are normally controlled and managed by local businesses, that are paying the levy. Currently the majority of BIDs are delivered through a Company Limited by Guarantee (not for profit). The BID Company would be responsible for the delivery of the BID projects and services and directly responsible to all businesses through a Board elected from those businesses that pay the BID levy.

A BID can be proposed by any business ratepayer, property owner, local authority or a partnership with an interest in the BID Area.

YOU - Once projects and services have been agreed along with how they are going to be delivered and managed, they are costed up and set out in a Business Plan. The cost to each business is worked out on a pro rata basis - This is called the ‘BID LEVY’. The BID levy is normally paid by the occupiers of a property. In addition, BID contributions can be provided through voluntary funding, grants and ‘in kind’ contributions.

WE NEED YOUR VIEWS NOW (AND EVENTUALLY, WE HOPE, YOUR VOTE!). A ‘BID Task Group’ is set up which is responsible for putting together a Business Plan in consultation with businesses. This sets out the projects it aims to deliver on behalf of the local businesses. The Business Plan will include the projects, costs, delivery mechanisms, performance indicators and the management structure. A confidential postal vote is then held of all businesses that would pay the BID Levy . To achieve BID status, a majority of those that vote must be in favour by number and rateable value. A successful BID has a mandate for a maximum of 5 years after which the BID would need to seek a renewal. The Digbeth BID draft timeline below:

Business Consultation  |  June-August 2025

& Engagement  |  September-December 2026

Business Plan  |  January 2026

Campaign  |  February 2026

Ballot

NO - THE OPPOSITE. BID funds can only be used to carry out projects/services ADDITIONAL to those that public services have to provide. Prior to the BID Business Plan being produced, the current services being delivered by all public agencies including the Local Authority and Police are benchmarked. The BID company can agree to provide additional resources to deliver a higher level of service over and above that level if this is what businesses have identified.