Forum Brief: Business Improvement Districts

Local government minister Nick Raynsford has published new draft guidance aimed at revitalising town centres and other business locations.

The guidance provides practical information and advice to businesses and councils wanting to set up a Business Improvement District (BID) in their local area.

Forum Response: British Retail Consortium

Bill Moyes, director general of the BRC, told ePolitix.com: "Retailers don't carry out their business in a vacuum. To thrive, retailers have to be part of a community. Without investment in a clean, safe, and well-managed urban environment, retail businesses will suffer.

"If introduced successfully BIDs could provide a useful tool for delivering improvements for the mutual benefit of retailers and the communities they serve.

"However, for BIDs to be a success and have a meaningful impact on communities, property-owners must have a formal role in them. Legislation, as currently drafted, excludes them from contributing. This is both unfair and a recipe for missed opportunities."

Forum Response: Local Government Association

Sir Jeremy Beecham, chairman of the Local Government Association, said: "Business Improvement Districts are a potentially exciting way of injecting new and innovative services into an area.

"The publication of this guidance will enable local councils to get down to work with their local companies to discuss BID schemes enabling real improvements in local services, which will be paid for directly by the other organisations involved.

"The LGA has worked with the government and others in drafting this guidance, and will continue to do so, in a way that ensures the BIDS process involves the wider community and enhances existing council services rather than replacing them."

Forum Response: British Property Federation

Ian Fletcher, director of commercial and residential at the British Property Federation, told ePolitix.com: "Although it will not be possible to start collecting BIDs revenue via the business rates system until April 2004, local partnerships that want to be ready should be starting to plan their BIDs now. The guidance being published has been prepared with the input of various practitioners and is an excellent reference source for local authorities and businesses contemplating a BID.

"Our only disappointment is that the legislation, as currently drafted, gives property owners no formal role in voting on or funding BIDs. Many existing voluntary schemes have been driven by property owners and their inclusion is something we shall be seeking to rectify as the draft Local Government Bill passes through parliament."

Forum Response: Institute of Directors

A spokesman for the IoD told ePolitix.com: "We have always believed in the positive role business and enterprise has to play in local communities. As the principle wealth-creators in society businesses can make a very real impact in deprived areas. We are pleased to see the government recognises this fact and offer our support to the Business Improvement Districts."

Forum Response: Federation of Small Businesses

A spokesman for the FSB told ePolitix.com: "The FSB is opposed to the principle of BIDS which small firms see as yet another method of allowing local authorities to raise additional revenue from the business community. Any guidance on BIDS published by the ODPM must be objective, allowing business owners to make up their own minds, and not a promotional tool designed to sell what we believe is a flawed idea."