What is the Banbury BID?
Launched in April 2017 after a feasibility study, consultation with businesses and organisations, and a month-long ballot, Banbury BID is one of around 300 Business Improvement Districts across the country.
Each levy-paying business and organisation within the BID area (see The BID area Map) makes a contribution each year, based on its rateable value (above an agreed threshold), to a fund which is used to deliver the projects and initiatives set out in its Business Plan.
How much does my business contribute?
Banbury BID is funded by a levy of 1.5% on the current rateable value of businesses in the BID area (above an RV threshold of £4,750) in each year of its 5-year term. To work out your own levy you’ll need to check the rateable value of your property. The BID levy is collected on the BID’s behalf by Cherwell District Council, with bills sent out in March/April of each year.
As examples: a business with a rateable value of £10,000 would invest £150 per year, a business with a rateable value of £75,000 would invest £1,125 per year and a larger business with a rateable value of £150,000 would invest £2,250 per year. A reduced levy of 1.125% applies to tenants of managed shopping centres/areas to reflect the service charge which they pay.
How much money will be generated?
The BID area includes 539 units from which the levy will generate approximately £210,000 per year. This can be supplemented by voluntary contributions from local businesses outside the BID area or inside the area but under the RV threshold. BIDs are also often successful in gaining additional funding because they are attractive to public sector bodies and other agencies, who are encouraged to match-fund money raised by the private sector through the BID.
Isn’t this just replacing current activities?
No – BIDs are designed to deliver additional activity and generally enter into a legal agreement with public-sector bodies, such as councils, to ensure that they continue to provide core services, with the BID delivering projects above and beyond these levels. Furthermore, the BID is governed by a Board made up of BID levy payers, who are tasked with ensuring that BID projects and initiatives deliver additional impact to existing activities.
Are all businesses and organisations in the BID area liable to pay the BID levy?
Yes, although an exemption rateable value level of £4,750 was set, so that businesses which fall under this threshold are not liable to pay the levy. They are, however, very welcome to make a voluntary a contribution towards the work of the BID.
How long will the BID last?
The maximum term for any BID is 5 years and we are working to this timescale in Banbury, which would generate more than £1 million towards key improvements. If businesses wish, further 5-year terms can subsequently be proposed and taken to ballot.