1. What is a Business Improvement District?
A BID is a defined geographical area where businesses pay a levy to fund projects and services that are intended to improve the trading environment. These are additional to those provided by public agencies such as Rugby Borough Council, Warwickshire County Council and Warwickshire Police.
2. Who decides whether a BID is established or renewed?
A BID can only be established or renewed following a formal ballot of eligible businesses within the proposed BID area. A majority must vote in favour by both number of properties and the total rateable value of those properties.
3. Who is eligible to vote in the BID ballot?
Businesses located within the BID boundary that are liable for the BID levy — typically those with a rateable value above a specified threshold — are eligible to vote. Rugby First will set the threshold in its proposal.
4. How is the BID levy calculated?
The levy is usually calculated as a percentage of a business’s rateable value. The exact percentage and any exemptions or caps will be detailed in the BID proposal.
5. What can BID funds be used for?
BID funds can be used for a range of activities, such as marketing and promotion, events, safety and security initiatives, public realm improvements, and business support services. These are outlined in the BID business plan but must be additional to those delivered by public services e.g. Rugby Borough Council.
6. Is the BID levy in addition to business rates?
Yes. The BID levy is a separate charge and is not a replacement for business rates. It is used specifically for BID-related activities.
7. What happens if the BID ballot is successful?
If the ballot is successful, the BID will operate for a fixed term (usually five years), during which the agreed programme of services will be delivered. Businesses will be required to pay the levy on an annual basis. Payment of the levy by instalments will be detailed in the BID proposal.
8. What happens if the BID ballot is unsuccessful?
If the ballot does not meet the required thresholds, the BID will not be established or renewed. The proposed services will be lost, and no levy will be collected.
9. Can a business opt out of the BID?
No. If the BID is approved, all eligible businesses within the BID area are legally required to pay the levy, regardless of how they voted.
10. Where can I find more information about the BID proposal?
Rugby First will publish a business plan and supporting documents outlining the proposed activities, budget, and governance arrangements. These will be made available ahead of the ballot.
11. Does the council have a vote?
As an organisation with multiple properties in the town centre, that also pays business rates, the council has the same right to vote as other businesses/properties. The council is legally bound by the same rules and outcome of the ballot as every other business/property in the BID area.
12. What will happen to the current services the BID provides if the BID ballot is not successful?
All additional services the BID provides that are paid for by the BID levy will cease.
This does not include service areas such as CCTV or some elements of town centre events.
Since the inception of the BID in 2005 the Council has had a separate contract with Rugby First for operating the town centre CCTV. The council has paid an additional fee of just over £316,000 this financial year for the BID to operate and manage CCTV services on its behalf.
CCTV services will not stop. Rugby Borough Council is currently evaluating CCTV as a service and is deciding on the best way to deliver this to meet the needs of the Town Centre. Any future third party operator of CCTV services, if not taken in-house by the council, will have to go through a procurement process and be given a legally binding contract with specific obligations.
The council has financially supported the BID to deliver specific town centre events over the past two years. This is in addition to the BID’s own budgets for events.
If the BID ballot is not successful the council would continue to deliver a number of town centre events. However those events solely funded by the BID levy would stop.