FREQUENTLY ASKED QUESTIONS

What exactly is a BID?

A BID is an arrangement under which the local business community plans, funds and delivers additional services and improvements to benefit their trading environment and public realm. A BID gives businesses the opportunity to say how their money should be invested to benefit themselves, their employees, customers and clients.

How is a BID funded?

A BID is funded through a small levy on business rate payers.  This levy is based on the rateable value of a premises and is typically 1%.

Why does Barnstaple need a BID?

Barnstaple is a vibrant market town and is a great place to work, shop and visit.  However, many challenges are posed by the likes of increasing competition from other retail centres in the south west and the growth of online shopping.  We need to be be doing every thing we can to encourage visits to Barnstaple and also to capitalise on the number of visitors to the wider Devon region, particularly during the summer months.

We need to make sure we can respond to the challenges that lie ahead and ensure the heart of Barnstaple offers a first class environment for businesses, shoppers and visitors.  A BID would help Barnstaple to achieve this and take a proactive approach in influencing the future agenda.  We can do much to improve the way Barnstaple is presented, promote the town more widely and ensure that when people come here they have a great experience and leave with a good impression.

How is a Barnstaple BID going to work

  • We will be launching the BID and embarking on a period of consultation with the businesses in the Barnstaple BID area, with the objective to identify key issues affecting the businesses that trade in Barnstaple town centre and highlight what provision of extra services, projects and improvements could tackle these issues; enhancing the trading environment in town and creating a more attractive and vibrant town centre.

  • We will be examining the current provision of services in Barnstaple, and working with the relevant public authorities and service providers to draw up baseline agreements.  These will ensure the current level of services provided in the Barnstaple area are maintained and agreed so that businesses can be assured that proposed BID activity will be over and above those services currently provided.  A proposed Barnstaple BID is NOT designed to subsidise or replace the services that are already covered by contributions to the local councils through Business Rates.

  • The consultation process with the business community will help to identify the projects and initiatives that would make a positive difference to Barnstaple town centre.  These will be formulated into a Business Plan, and this will show the cost of these services, their management, administration and promotion.  The projects and initiatives contained in the Business Plan will be funded from every business rate-payer in the BID area contributing via a small levy based on rateable value.

  •  The businesses in the BID area will vote on the proposals (ie the proposed BID services, projects and initiatives) through a postal ballot and if successful, the BID will be implemented.  To succeed, the ballot has to meet two tests.  First a simple majority of those who vote must be in favour.  Second, of those voting yes, their total rateable value must be greater than those who vote no.

 

How much is the BID going to cost me?

If the majority of business rate payers vote to support the BID, under the BID legislation all will contribute towards its delivery by paying a 1% levy on Rateable Value.  If you are not sure of your rateable value, please call Sue Rawle on 01271 321049 who will be able to advise you.

Will there be any increase in the levy over the BID duration?

No.  The levy will remain at 1% and be fixed against your rateable value and any increase or decrease in your rateable value will not affect the BID levy.  The levy will be calaculated on your Rateable Value on the 2005 Non-Domestic Ratings List.  We are aware of the revaluation of that will take effect from April 2010 and by fixing to the 2005 list, there will be no hidden surprises to the amount you will pay.

When would I be billed if a BID is put in place?

This will be confirmed shortly.  In the event of a successful BID vote, it is likely activity would commence from April 2010.

How long will the BID last for?

The BID will operate for 5 years, with the levy being paid each year.  Towards the end of the 5 years, the BID’s mandate will need to be renewed through a new vote.

Who is liable for the levy?

The BID levy only applies to non domestic rate payers.  If the BID ballot is successful then all the rate payers in the BID area will be liable for the additional BID levy during the life of the BID.  Any new tenants beginning their leases during the BID’s duration will be liable to pay the additional levy, if the previous occupier was paying it.

Are there any exemptions, for example for non-profit making organisations / charities?

The only exemptions will apply to non-trading, service charities.  All other properties carrying a rateable value will be liable for the BID levy.It is important that the BID operates as a ‘level playing field’ so all businesses in the BID area will make an equal relative contribution via the levy on rateable value.  This will also mean that all businesses have an equal voice through the BID Steering Group that will be set up to manage the delivery of the BID.

I get relief on my business rates, will I qualify for any relief on the BID levy?

No.  It is important that the BID is administered as simply as possible and provides a level playing field for all businesses investing in the BID.

What is the timescale for a proposed Barnstaple BID?

This is a provisional timescale for the development of BIDBarnstaple:

Autumn/Winter 2008 – Consultation process with the business community and key stakeholders

Spring 2009  - Further consulation and and commencement formulating draft BID Business Plan

Summer 2009 – Draft Business Plan formulated, presentation to business community for consultation late July.

Autumn 2009 - Business Plan finalised and available to all stakeholders

October 2009 – Voting on Business Plan

What is the role of the Council in the BID Process?

NDDC are fully in support of a proposed BID, are one of the partners and will also be a levy payer.  NDDC will be represented on the BID Steering Group and will offer input and support to the BID process.

Specifically NDDC will:

  • Provide information relating to their service provisions in Barnstaple to allow the drawing up of Baseline Agreements
  • Conduct the BID ballot (As per the BID Regulations)
  • Administer the collection of the BID levy (As per the BID Regulations)

 

Why are NDDC behind a BID?

NDDC are keen to support any initiatives that will provide the area with a strengthened economic outlook and improve the town centre for customers, visitors and employees.

They are also keen to develop closer relationships with the business community and promote new sustainable funding for the town centre.

How can I have my say over what I would like to see included in the BID Business Plan?

We have staged detailed consultation over the last few months through one on one meetings, street meetings and a written survey.  We will also be inviting your feedback on the draft BID Business Plan, once published at the end of July.  We welcome your input into the development of a Barnstaple BID and you can contact Sue Rawle on 01271 321049 to discuss anything in detail.

How do we know a BID will be providing services over and above what is currently provided?

The Baseline Agreements made with current service providers in the proposed BID area will detail the current levels of service provision and ensure that these are maintained.  The BID will also work with these service providers to encourage enhanced levels of service where possible.

What will be the main benefits of a BID to my business?

It will allow you to directly influence and take control of projects and services that would benefit your business.  Your investment will be spent in your local area on projects and services identified by you as important

A BID can cover all aspects of the town including:

  • Safety and security
  • Street cleaning/litter collection
  • Marketing and promotion
  • Town centre navigation and signage

The aim will be to make Barnstaple town centre more appealing, vibrant and with a strengthened economic outlook. 

Specific benefits you could expect to see in Barnstaple include:

  • Increased footfall into the town and around all areas of the town leading to more sales
  • Increased profile of Barnstaple across the south west, providing PR opportunities and possibly helping to attract and retain good staff in the area
  • More attractive and vibrant trading environment
  • Greater involvement in Barnstaple and a collective budget to make things happen
  • Reduced costs – for instance through collaborative marketing
  • A more cohesive town centre with all areas of the town represented and promoted
  • A more welcoming and positive experience for you and your customers

 

If a BID is put in place, how will it be governed so we can ensure that the Plan is delivered on?

As the promoters of the scheme Barnstaple Town Centre Management will have overall legal responsibility for it.  However, it is important that those paying the levy have a say in how the scheme is managed and operated.  A Steering Group will be established that would represent the interests of the levy payer and would meet on a monthly basis to monitor progress and direct the overall delivery of the plan.

Can the BID plans be altered at any point after the ballot?

Once agreed, the Barnstaple BID area and rate of levy cannot be altered without an Alteration Ballot. 

In the cases of the BID Proposals (which become the arrangements after a successful vote), if the original proposals explicitly allow for an alteration to occur then an alteration ballot is not necessary.  However, if an alteration is not explicitly allowed by the proposals then an alteration ballot will be required. 

Can the BID be terminated at any point?

Under some circumstances, either the local authority or the BID organisation may terminate a BID.  In all cases, all stakeholders including the local authority, the BID organisation and representatives of the business community must be consulted before the termination of the BID.  After the termination, the local authority must notify all liable rate payers in writing and provide an explanation of whether a refund will be made.

Why should we be paying extra towards a BID, shouldn’t this be the council’s responsibility?

In an ideal world we might look to the councils to provide additional services in order to raise standards.  However, they could only do this by either attracting more funding from central government or by raising revenue through higher local taxation.  In the current climate it is unrealistic to expect local authorities to go down either of these routes.

Therefore, if we want additional services and improvements above what is currently provided, plus the opportunity to market and promote Barnstaple to a greater degree than ever before, we will have to join together to help pay for them. 

It is worth remembering that whilst income from business rates are paid into a national pool and then redistributed to local authorities to contribute towards the provision of their services, any BID money raised will be spent directly in your local area, on services and projects identified by you as being important.

Baseline agreements will be put in place to ensure current levels of service provision by the public authorities are maintained and it is absolutely crucial to understand that money raised through a BID will not be used to subsidise or replace the services currently provided by the public authorities. 

How will we know the money is being used effectively?

The BID will be implemented by the BID Steering Group through Barnstaple Town Centre Management and the governance and monitoring of the scheme will be completely transparent.  All BID levy payers will be given regular updates throughout the lifetime of the BID and this will include detailed information on the finances so that you can see how and where your money is being spent.

Shouldn’t the people that own property in town contribute to the BID since they will be benefiting as well?

The plan is to engage with the Property Owners in the BID area to outline the benefits to them and seek additional contributions to help bolster the funds generated by the levy allowing even more money to be spent on improving Barnstaple.

How exactly will the ballot work?

The businesses in the BID area will vote on the proposals (ie the proposed BID services, projects and initiatives) through a postal ballot and if successful, the BID will be implemented.  To succeed, the ballot has to meet two tests.  First a simple majority of those who vote must be in favour.  Second, of those voting yes, their total rateable value must be greater than those who vote no.

If I vote no but the BID goes ahead, am I legally obliged to pay?

Yes

 

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