FAQ
What is a Business Improvement District (BID)?
Business Improvement Districts are business led and funded partnerships which are created through a ballot process to deliver additional services to local businesses.
There is no limit on what projects or services can be provided through a BID. The only requirement is that it should be in addition to services provided by local authorities.
How is a BID established?
BIDs are legally established once a successful ballot has been secured.
Businesses that are eligible to pay the BID levy are entitled to vote in a ballot. A successful vote is one that has a simple majority both in votes cast and in rateable value of votes cast. The ballot process is regulated and administered by the local authority.
How long will a BID last?
BIDs have a maximum term of 5 years. Once completed they automatically cease and require a new ballot to continue.
The BID term start and end dates for all eight HOLBA BIDs are not aligned and so not all ballots are held simultaneously.
HOW IS THE BID MANAGED & GOVERNED?
The board of directors is responsible for the long-term success of the company. Its role is to provide oversight of the company's strategic and fiscal management. It is made up of non-executive directors and presided over by an elected chair. The membership of the board is representative of all business sectors operating in the Heart of London Business Alliance Districts. The HOLBA Board of Directors is unpaid and the liability of each director is limited to £1.
Company representatives on the board include:
How is the BID financed?
BIDs are funded via an annual business levy. HOLBA is an entirely not-for-profit company and 100% of its income is ring-fenced to spend on the BID priorities. HOLBA has a strong track record of securing additional non-levy investment for the area.
Where do business rates go?
The local authority is responsible for the administration and collection of business rates and council taxes in the City of Westminster. It retains the equivalent of only 5% of its annual collection. Find out more information on business rates.
What does the council deliver?
The local authority is responsible for a range of services including education, libraries, social services, housing, planning, licensing, trading standards, enforcement, fire and public safety, waste management, refuse collection and recycling.
Why do we need a BID if we are already paying business rates?
Whilst the demand for local authority services continues to rise, councils across the UK have had a 26% real terms cut in core spending power since 2010, weakening their ability to deliver services and meet new challenges.
The consequences of these pressures are visible on the streets across London and threaten the West End’s reputation as a world-leading destination for culture and commerce.
In 2004, businesses in the West End decided they could not stand by and allow their streets to deteriorate. Instead, they had the foresight to set up HOLBA, a vehicle that allows businesses to raise, control and determine how 100% of their money is spent in their trading environment.
Is the BID part of the council?
HOLBA and the statutory providers including Westminster City Council are separate entities.
HOLBA is non-political. It is established, controlled and funded by businesses via an independently regulated ballot and has a maximum five-year term.
It is an entirely not-for-profit company and 100% of its income is ring-fenced to spend on business priorities.
Will we be paying the council and a BID for the same services & projects?
Westminster City Council will provide HOLBA with a statement of baseline services it will deliver over the BID term.
This provides transparency, prevents duplication and allows HOLBA to focus on investing in services that are new or enhance those of the council.
The baseline services agreement ensures that businesses are not paying twice for the same services.
HOLBA works proactively with public and private organisations to align priorities, optimise investment and enhance standards in the area.
What is HOLBA?
Heart of London Business Alliance consists of six BID entities -three occupier and three property owner BIDs across three districts. Indeed, HOLBA operates three of only four property owner BIDs in the country.
The unique combination of owner and occupier BIDs best reflects the short- and long-term interests of those who own, occupy, manage and rent property and spaces in the area.
Each entity has separate budget accountability while contributing to the overall business plan. This allows for economies of scale, joint procurement, greater influence and better results for all.
Over the past two decades, HOLBA has invested over £42million directly into transforming the commercial, cultural and trading environment of the BIDs.