A BID is funded by businesses voting to pay a small proportion of their business rateable value on a package of improvements and this money is then ring-fenced for use only in the BID area. A BID can only be formed following consultation and a ballot in which businesses vote on a Business Plan which they have developed.
A levy of between 1.5% to 1.75% is being considered in Christchurch, resulting in an average business investment of between £300-£350 per year, although many businesses would pay less than this. A discount is being considered for tenants of managed centres to reflect the service charges which they pay and an exemption level of £5,000 is also being considered, which means that small businesses would not be liable to pay the levy.
Initial indications suggest a BID area of approximately 300 businesses, which would generate approximately £120,000 to £140,000 per year, and which we would also expect to be supplemented by contributions from local businesses outside the town centre, as well as other funding sources. It is proposed that the BID would initially operate for 5 years, meaning that approximately £650,000 of improvements would be generated for the town.
Feedback suggests that the area covered by a BID should be within the core boundary of the town centre, however, the area proposed remains open to consultation.