Section 3 – What is a BID?

A Business Improvement District (BID) is a clearly defined area where local businesses come together and vote to invest collectively in initiatives that improve and strengthen their commercial environment. The creation and operation of a BID are set out in the BID Regulations 2004, which sit within the Local Government Act 2003. There are now more than 315 BIDs across the UK, each typically operating for a five-year term.

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The BID Business Plan outlines the priority objectives for the area, with the BID team working alongside member businesses to deliver projects through agreed action plans. BIDs are led by the business community, with Boards and Committees made up of volunteer representatives from BID member organisations.

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A fundamental principle of a BID is that all activity it delivers must be additional to services already provided by public bodies. During the development of the BID Proposal and Business Plan, baseline agreements are established with local councils and the police, setting out the level of service they will maintain throughout the BID term. Strong partnerships with councils, police authorities, and other recognised agencies also help ensure that the needs of local businesses are clearly understood and effectively addressed.

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At the end of each term, a BID may seek renewal by presenting a new Business Plan, which businesses vote on to decide whether the BID should continue for a further term.