Dr Julie Grail Managing Director

Dr Julie Grail Managing Director

What is a BID? BIDs are business-led partnerships focused on improving and enhancing commercial areas including town and city centres, commercial locations and industrial estates.

National BID Legislation Primary legislation passed in 2003, followed by regulations in 2004 for England. (Wales 2006; Scotland 2007; Northern Ireland 2014) Based on occupier levy, utilising existing Business Rate legislation Enabling legislation is non-prescriptive providing broad parameters Local custodian of legislation is the local authority Property Owner BID legislation passed in 2014 (limited applicability)

UK v NZ Model (1) BASE TAX UK Occupier NZ Landowner BID LEVY/RATE UK hereditament NZ ratepayer CONCEPT OWNERSHIP UK Central Gov/Business NZ Local Gov/Business

UK v NZ Model (2) VOTING UK Dual Key/No Turnout NZ One Entity/Threshold DELIVERY FRAMEWORK UK Voluntary Codes/ Templates AUDITING/REPORTING UK Ballot Box (!) NZ Local Government NZ Local Government DISESTABLISHMENT/ UK Statutory Clauses NZ Local Government TERMINATION

UK BID Establishment Broad Principles on a 12-18 month timeline 1. Consultation & Engagement (utilising rating data) 2. Business Plan and Levy Rules (BID arrangements) 3. Legal Agreements Baseline & Operating 4. Local Authority Sign-off (custodian of legislation) 5. Ballot 6. Implementation

UK Evolution Timeline 1990s Town Centre Management 2001 to 2005 The Circle Initiative 2004 to 2011 The London BIDs Programme 2004/2005 National Government BID Legislation Est d 2006 British BIDs 2014/2015 Government Review of BIDs

The Circle Initiative 2001-05 The first BID pilot programme, focused on five locations across central London, funded by 4.6m of government regeneration funds Piloted the set up and delivery of the BID model using business-led partnerships supported by an enabling role from their local authorities Controlled application process for accessing the funds ensuring quality and monitored delivery Provided a central learning network that facilitated exchange of best practice and experience

The London BIDs Programme 2004-11 A regional programme of support and best practice exchange funded by the Regional Development Agency (using entirely public funds) but delivery outsourced to a private provider Regular hosted networks for distinctive types and geography of BIDs, and for their respective local authorities Comprehensive provision of information and best practice exchange via website and monthly enewsletter Funded consultancy support to emerging locations and authorities

British BIDs est d 2006 The national organisation for the industry focused on driving quality and standards (2006 to 2015) Industry Criteria Accreditation BID Academy Certificate in BID Management Guiding Principles (Voluntary Code of Conduct)

Government Review of BIDs 2014/15 A positive Government review focused on improving and enhancing the BID legislation to make it fit for purpose going forward and to tidy up problem loopholes Transparency and Accountability The Role of the Local Authority Future scope for the BID model

UK Success Factors 1. Culture of partnership was already strong in the UK (TCM in place from mid 1980s) 2. Early adoption and best practice exchange very strong due to formal coordination mechanisms (Circle; London BIDs; and British BIDs) 3. Evidence of quality and innovation well articulated and documented through formalised but not mandatory routes (Accreditation; Academy; Awards; Nationwide Survey)

UK Success Factors 4. Non-prescriptive legislation enabled fit for purpose models (Variable Levy Rates; Thresholds; Caps; Exemptions etc) 5. Public support and funding instrumental in the early years (Regional Development Grants; Local Authority coordination/facilitation)

UK Challenges 1. What does success look like? (Absence of key centralised/mandatory success measures or methods of reporting) 2. Legislative loopholes allow poor/irresponsible behaviours and performance (Consultation and Engagement; Voting Process; Annual Reporting; Transparency and Accountability)

UK Challenges 3. Absence of Industry Regulator (Insufficient quality and controls in the few is having a negative impact on the overall BID concept) 4. Management and Governance highly dependent on personalities/rare skill sets (Limited legislative controls is allowing poor/rogue delivery) 5. Baselines are now meaningless in most locations due to public funding squeeze (Concept raison d etre moved beyond additionality )

Totals for the Industry: UK-wide 273 BIDs (incl London) > 120,000 Hereditaments > 167m Investment

Totals for the Industry: London-wide 56 BIDs (20%) > 62,000 Hereditaments (51%) > 32m Investment (19%)

Why do we have BIDs? Disparate ownership and needs Competition to the high street heightened Public sector resources decreasing Customer expectations higher Culture of partnership/collaboration

What difference do BIDs make? Focus on increasing trade and reducing cost Deliver coordinated projects and services Sell the location as one single entity to the consumer Take the lead on place shaping

How do BIDs make a difference? Cleaning up (clean, safe, green, cared-for) Promoting (branding, campaigns, online, social) Enlivening (events, animation) Cost-saving (recycling, supplies, insurances) Innovating (quirky to commercial) Place Shaping (catalytic, driving vision, coordinating change)

Examples of Innovation & Evolution 1. Joint Commissioning Smart Green Business via Cross River Partnership (15 BIDs) London s Luxury Quarter (New West End Company & Heart of London Business Alliance)

Examples of Innovation & Evolution 2. Mentoring new start-up BIDs Ealing Broadway & West Ealing Paddington Now & Marble Arch Inmidtown & Farringdon&Clerkenwell

Examples of Innovation & Evolution 3. Multiple BID Management Utilising knowledge transfer Achieving economies of scale Challenges of empire building Concerns of loss of local identity

Examples of Innovation & Evolution 4. Coordinated Voice/Lobby West End Partnership (Place Management) Inner London BIDs (Planning Lobby) Northern BIDs (Policy Lobby) Southern BIDs (Networking & Knowledge Transfer)

What Next? Re-emerging perception of cost on occupiers Wider application to tourism/destination management Public Sector Squeeze - Inability to demonstrate additionality

What Next? Transfer of Public Services/Responsibilities - Implications for governance and democracy Proving Real Impact - Need to demonstrate economic value of BIDs Cultural shift towards community sharing?