How is a BID created?
The rules for creating and operating a BID are set out in legislation. In brief, businesses are first consulted to see if there is an appetite for a BID being created. If the result is positive then a full Business Plan is produced, and a ballot of qualifying businesses is held.
The Sevenoaks BID will have a five-year lifespan, which can be extended by subsequent ballots. The BID empowers local businesses to raise funds to be spent locally on improving their trading environment and hence the vitality and wellbeing of the town.
In Sevenoaks, the fund is expected to total about £1.5M over five years.
What are the aims of the Sevenoaks BID?
The aims will be determined by the BID Board based on improving the Sevenoaks experience for visitors, residents and businesses.
The definitive list will be determined after consultation and by Board members. The following might be addressed:
- Marketing the town
- Improving security
- Improving safety
- Creating a wayfinding scheme
- Additional cleansing
- Staff training
- More events
- Becoming a voice for lobbying
- A signposting service to services
What are the ballot criteria?
- Over 50% of the votes cast must be in favour, and
- The combined rateable value of those who vote in favour must represent over 50% of the total rateable value represented by those who vote.
What are the aims of the Sevenoaks BID?
The BID is an independent company run by its own Board of directors. It is not beholden to any public authority though might well have one or more Council representatives. The Board will be comprised of people drawn from the Sevenoaks business community. They will be unpaid.
The day to day running of the BID will fall to the BID Manager, and depending on need and funds, other staff members.
Why should I pay when we already have Christmas lights and events etc?
A BID cannot be used to pay for existing services and has to be used for “additionality”. Before the BID is implemented a baseline service provision will be established with Sevenoaks Town Council, Sevenoaks District Council, Sevenoaks Town Team and Kent Police.
How is the BID financed?
Your Sevenoaks BID will primarily be financed through a BID levy applied to qualifying businesses within the BID boundary. The levy is likely to be at 1.5 -1.75% of a business’ rateable value of over £15,000. Those businesses with an RV less than £15,000 will not have to pay but can become members of the BID (and have a voice in the BID) by making a voluntary contribution. Charities will benefit from a discounted rate.
The levy income can be used to lever in more funding; for example, from public sector agencies, grant bodies, sponsorship, landowners and trading income, during the 5 year scheme, maximising the potential funding stream and the benefits that the BID can achieve.
Who collects the BID levy?
The BID levy will be collected by Sevenoaks District Council. BID Legislation provides for local authorities to be the billing body as the Council already has systems and procedures in place to collect the business rates.
What happens to the BID levy when it is collected by the Council?
All money collected by the Council will be paid direct to the BID Operating Company. There will be a small collection charge, but no funds are held back for funding other statutory services unless these are additional and requested by local businesses.
What is the next stage?
If the initial reaction to creating a BID is generally positive, then a formal business plan will be created. That will be done by a Steering Committee. If you wish to be on that Committee then let us know.
It will be on the basis of the Business Plan that businesses will be asked to vote. If the ballot has a positive outcome, then a Board of Directors will be appointed. Members of the Steering Committee will most likely be invited to become Directors.
What happens if I refuse to pay?
It is hoped that all businesses will see the benefits of contributing to the BID. In the event of non-payment, on behalf of the BID operating company, the Council will recover any sums due in line with normal recovery processes.
