Subscribe to our newsletter to receive business tips, learn about new funding programmes, join upcoming events, take e-learning courses, and more.
Take the first step to successfully starting and growing your business.
Join for free)
Posted: Fri 8th Dec 2023
4 min read
A Business Improvement District (BID) is a defined area where local businesses have voted to invest in improving the projects and services available to them.
There are currently 70 BIDs in London, with new ones proposed and developed every year. There are no restrictions on what these projects and services can be, other than that they must be in addition to those that local authorities provide.
In this blog, we explain how BIDs work, what they provide and how you can find your local BID.
You can set up a BID if:
you pay business rates
you're an individual or business that wants to develop the BID area, or
you have an interest in land in the area
To do so, you must submit a proposal and plan to the local authority that provides details about:
the size and scope of the BID
the services it will provide
the amount of levy to be paid, and
who will be liable for the levy
The BID is funded by a levy (a fee) on all business rate payers on top of their business rates bill.
It's usually between 1% and 4% of rateable value. However, some BIDs use a banding system, where businesses are grouped together based on their rateable value and charged a percentage of that amount.
The BID is managed by a BID body, which can be either a private company or a partnership with the local authority. Most are non-profits.
This body is responsible for putting the BID proposal into action, managing billing and collecting the levy.
BIDs can provide a range of projects and services that benefit the local area.
They run a range of services, such as:
marketing the local area
training courses
business directories
networking events
projects to improve security and public spaces
environmental projects
discounts for business owners
employment and recruitment support
insights and updates about local business issues
BIDs benefits local businesses in a number of ways, including the following:
The levy money can only be used for the BID area
Local businesses can decide what services they need
Mediating with public bodies such as local councils, Transport for London and the police
Promoting the local area and boosting footfall
Creating networking opportunities
The Mayor of London has an interactive map where you can find out more about your local BID. BIDs are divided into four categories: town centre, industrial, property and cross river partnerships.
No matter where you're based in London, you'll find relevant support and guidance on business planning, sales and marketing and much more, as well as opportunities to connect with like-minded business owners. Visit Grow London Local now
