Finances

BID levy rules

The BID process is governed by Government legislation and regulations. As such, once a majority vote has been achieved in both individual properties and Rateable Value, the BID levy becomes mandatory on all eligible occupiers.

The rules for the BID levy are as follows:

  • The BID term will be a period of three years from 1 April 2018 - 31 March 2021;
  • The BID Levy will be applied to rated properties in the BID District with a rateable value of £400,000 or more;
  • The BID levy will only be applied to retail, food and beverage and leisure (including hotels);
  • The levy will be a fixed rate of 0.65% rateable value as at 1 April 2018 using the 2017 list for all eligible payers apart from hotels and owner/occupiers;
  • The levy rate for all hotels will be a fixed rate of 0.6% of rateable value as at 1st April 2018 using the 2017 list;
  • The levy rate for all owner occupiers will be a fixed rate of 0.5% of rateable value as at 1st April 2018 using the 2017 list. Owner occupier is defined as the occupying ratepayer who is liable for both BID levy and BRS (owner) BID levy on a particular property on a particular day;
  • Properties that come into the Rating List during the BID term will be subject to the BID levy from the effective date that the property is brought into the rating list and the rateable value effective at that time;
  • Charitable organisations in receipt of mandatory charitable relief from business rates will receive 90% allowance;
  • Empty properties will be liable for the BID levy via the ratepayer with no void period;
  • The BID levy will assume an annual growth rate for inflation of 3% to be applied 1 April each year;
  • There will be no VAT charged on the BID levy;
  • The BID levy will not be increased other than as specified in the levy rules;
  • The BID levy rules and BID Area cannot be altered without an alteration ballot;
  • Where the rateable value for an individual hereditament changes and results in a lower BID levy, then this comes into effect only from the start of the financial year in which the change is made and no refunds will be made for previous years. This will be known as the closed year rule.

The NWEC Board may alter the BID arrangements without an alteration ballot so long as the Board consults on such alteration with the City Council and any alterations do not:

  • alter the geographical area of the BID;
  • cause anyone to pay the BID levy who was not liable to pay it before; or
  • increase the amount of the BID levy for anyone.

Any such alterations to the BID arrangements must not conflict with the Local Government Act 2003 or the Business Improvement District (England) Regulations 2004.

Details available at www.newwestend.com

Occupier BID Budget

A reduction in BID levy from 1% to 0.65% has been introduced to support members and offset the majority of increase seen from the revaluation of Business Rates. This results in a 5%* income reduction for New West End Company.

The budget needs to allow for a contingency for any future variance in the business rates due to development work and resolution of business rates disputes. £1.4m is being targeted through additional income.

We are exploring different ways of working to target cost reductions and to increase New West End Company efficiency and effectiveness.

BID Area: 2018/19
£k
Income
BID Levy 3,979**
Associate Members 50
Voluntary Property 276
Sponsorship 565
Partnership & Other Services Income 482
Total Income 5,352
Expenditure
Place Management 2,038
Marketing 1,500
Insight & Research 385
Christmas Lights & Capital Cost 753
Management 418
Admin 35
Contingency 199
Total Expenditure 5,328
Net surplus/(deficit)24
Management cost as % of total income8%
* The 5% reduction relates to the current New West End Company BID area. ** The £3,979k includes income from the extended area.

West End Company - 3 year Income projection

2018/19
£k
2019/20
£k
2020/21
£k
BID Levy 3,979 4,098 4,221
Associate Members 50 50 50
Voluntary Property 276 276 276
Sponsorship 565 565 565
Partnership & Other services Income 482 482 482
Total 5,352 5,471 5,594
NOTE: BID Levy increases by 3% for inflation Y-o-Y.
All other income remains flat.