Coventry Best 4 Business

If you have any questions about the Coventry Best for Business BID, please telephone 024 7665 4300 or email your Business Area Champion. However, here are some of the FAQ’s so far.

What is a BID?

A partnership between the local business community and a local authority that develops and takes forward projects and services which will benefit the trading environment and the public realm. (See What are BIDs? Page for more detail)

Why have I got a bill?

In February 2007 a ballot took place and the majority voted in favour of the Coventry Best for Business BID. Every effort was taken to keep you informed of the BID both before and subsequent to the ballot. The BID went into operation on 25 October 2007 and will last for 5 years. The bill you have received covers the period 1st April 2008 to 31 March 2009. You will then receive bills annually in April for the remaining term of the BID.

The local business community identifies a requirement for a capital project or services that will have a positive impact on the trading environment. It defines the geographic location of the BID and develops a business plan to deliver the project/services. The plan identifies how much money will be raised, how it will be spent, how the project will be managed, the delivery and monitoring procedures. The Local Authority is responsible for organising the vote on the proposed plan.

How is it funded?

Once the vote has been passed, the Local Authority will collect a supplementary levy on the business rate and the amount will be wholly designated to the BID. There is no specific limit or recommended amount, however whatever levy is proposed must be clearly specified in the business plan that is voted on by the business ratepayers.

Why is a BID needed?

A BID provides the mechanism to secure sustainable funding to deliver services and improvements to address local problems. It will only be used to deliver additional services/capital improvements that the business community has identified as necessary to add value to the trading environment.

What are the benefits?

BIDs provide sustainable funding for an agreed period of time. There is no "freeloading" - those who vote have a voice, pay the levy and will benefit. It is a transparent, clear and democratic process. It allows self-management and self-funding with no red tape or bureaucracy. It provides practical services to ensure a safe, well marketed and supported environment. In the long term it will deliver significant economic and quality of life benefits.

How long does a BID last?

The specified period for which the ratepayers must pay the additional levy, i.e. the duration of the BID itself, must be specified in the initial BID proposal. This period cannot exceed five years but may be any period of time under five years.

Are additional funding sources allowed?

Alongside the additional levy that ratepayers will pay as part of a BID, the legislation allows voluntary contributions to the BID to be made by any billing authority, County Council or Parish Council. It also allows contributions to be made by property owners and other organisations.

Who will pay?

The type of non-domestic ratepayer in the BID area that will pay the BID levy must be specified in the proposal that is voted on. All the identified ratepayers will then be liable to pay the BID levy should the defined ratepayers vote in favour.

How much will I pay?

The BID levy is calculated as £208.60 plus 1.565% of rateable value.

Who collects the levy?

The agreed additional BID levy must be paid by the ratepayers to the billing authority concerned.

Who gets to vote?

All ratepayers who will be liable to pay the additional BID levy will have a vote in the ballot.

What criteria must be met to secure a successful ballot?

A successful ballot will have to meet two tests. Firstly a simple majority of those voting in the ballot must vote in favour. Secondly, those voting in favour must represent a majority by rateable value of the hereditaments (rateable properties) of those voting.

Who administers the vote?

The local authority will be responsible for calculating whether or not the vote has been successful and will have to announce the result of the ballot publicly.

Why are BIDs different?