Businesses support a Business Improvement District (BID) because it provides a practical way to invest collectively in the success of their town centre. Through the BID levy, businesses pool resources to fund projects and improvements they have identified as priorities –  initiatives designed to strengthen the trading environment, attract more visitors, and enhance the overall appeal of the area.

By working together, businesses can achieve improvements that would be difficult to deliver individually, while benefiting from increased footfall, stronger promotion of the town, cost-saving initiatives, and a more welcoming and vibrant environment. Ultimately, a BID aims to deliver measurable value and a positive return for those who contribute to and benefit from the improvements.

Performance and delivery are monitored by the BID Board of Directors, who represent levy-paying businesses and provide strategic oversight. Key performance indicators (KPIs) are agreed to measure progress against the BID Business Plan, and performance is reviewed regularly to ensure projects deliver value.

The BID company is accountable to the businesses that fund it and provides regular updates through reports, newsletters, meetings, and its Annual General Meeting. Financial transparency and progress reporting ensure levy payers can see how funds are invested and how activities are contributing to agreed priorities.

BIDs are led and governed by the local businesses that fund them. Most are operated through a not-for-profit Company Limited by Guarantee, ensuring that all income is reinvested into projects and services that benefit the BID area.

The BID company is responsible for delivering the agreed programme of improvements and is overseen by a Board of Directors elected from levy-paying businesses. This structure ensures that decisions are made by businesses, for businesses, and that the BID remains directly accountable to those who fund it.

A BID can be proposed by any business ratepayer, property owner, local authority or a partnership with an interest in the BID Area.

The primary funding for a Business Improvement District comes from the BID levy, which is paid by eligible businesses within the BID area. The levy is calculated on a fair, pro rata basis and is typically paid by the occupiers of business premises.

In addition to levy income, BIDs can secure additional funding to enhance and extend their programme of activity. This may include voluntary contributions from businesses outside the levy threshold, grants, sponsorship, partnership funding, and in-kind support from local authorities and partner organisations.

This blended approach enables a BID to maximise investment and deliver greater value for the business community.

Normally a ‘BID Task Group’ is set up which is responsible for putting together a detailed business plan setting out the projects it aims to deliver on behalf of the businesses in the BID area. This is based on a detailed consultation process with businesses. The business plan will include the projects, cost, delivery guarantees, performance indicators and the management structure. A confidential postal vote is held, all the businesses that would pay the BID levy get a vote. To become a BID a majority of those that vote must be in favour by number and rateable value. A successful BID then has a mandate for a maximum of 5 years after which the BID would need to seek a re-ballot. The indicative timetable for developing the Farnham BID is set out below:

Business Consultation & Engagement – May to July 2023

Business Plan – August 2023

Campaign – September to October 2023

Ballot – November 2023

BID money can only be used to carry out projects/ services ADDITIONAL to those that public services
have to provide. Prior to the BID Business Plan being produced the current services being delivered by all public agencies including the Local Authority and Police are benchmarked. The BID company can agree to provide additional resources to deliver a higher level of service over and above the benchmarked level if this is what businesses have identified.