An arrangement whereby businesses get together and decide the strategy for:
- the improvements they want to make in the BID area;
- how they will manage and deliver the improvements;
- how improvements will be funded.
This information goes into the eventual BID Company business plan which is voted on by all those who would have to pay.
A BID is a mechanism which allows businesses to raise a sum of money to manage and deliver projects that they have identified and believe will improve their trading environment. These projects aim, ultimately, to create a recognised tourist business destination and to increase trade for those businesses who are paying for the improvements in the target area.
The health of the retail and tourism economies is very much intertwined, not just for visitors, but for local people and the success of businesses they work in. The Yorkshire Coast BID will bring together two hugely important areas of the local economy that may have worked in isolation in the past.
Residents recognise that the Yorkshire Coast is a healthy location in which to live. It also provides a focal point and a function for services as well as jobs and opportunities in the visitor economy. Those visiting the Yorkshire Coast come for our stunning coastline and our amazing attractions but they also spend money in hotels, shops, restaurants and cafés .
By bringing together these two sectors the offer to residents and visitors can be greatly improved and work towards cultivating an economy that thrives 365 days of the year.
Once projects and services have been agreed by businesses, along with how they are going to be delivered and managed, they are costed up and set out in a detailed business plan. The cost to each business is worked out on a pro rata basis. This is called the ‘BID Levy’. An independent and formal vote then takes place on the agreed projects and services and, if the majority vote yes, then all within the BID area have to pay. The BID levy is normally paid by the occupiers of a property. In addition bids can draw in other voluntary funding, grants and ‘in-kind’ contributions to supplement the BID levy.
It’s up to you. BIDs can deliver any projects or services that are agreed by the businesses in the BID area that are over and above that which the Public Sector provides. When working specifically with retail and tourism benefitting businesses part of the budget can be allocated to destination marketing or events to increase visitor numbers both in and out of season. However, the consultation process will also highlight other areas that businesses feel strongly about such as increasing safety and security, central procurement and enhancing the visitor experience.
The important thing is that the BID is focused on delivering initiatives as determined by detailed consultation with all businesses in the BID area.
The initial BID process lasts for a maximum of 5 years and must be able, at the end of that period, to demonstrate how it has benefitted the businesses that have funded it.
Towards the end of the BID’s 5 year term the consultation process will restart and a further business plan will be created. Levy payers will once again vote on it, and only a successful Yes vote would secure a further 5 years.
- Your business must be categorised as having a retail, leisure, hospitality function or that it is directly/indirectly affected by tourism.
- Your business’s rateable value is above £12,000 per annum
- You are in the geographical location (See The BID Area)
If you are still unsure, please contact us here.
The levy for the proposed Yorkshire Coast BID will be 1.5% of a premises’ rateable value. For the smallest businesses this will cost just £180 a year. The collective levy payments will equate to an additional £1.1 million of new investment per year for each of the next 5 years. These funds will promote the Yorkshire Coast and support businesses to help them thrive both in and out of season.
The delivery of the BID will be managed by a not-for-profit company managed by an elected Board of Directors chosen from the businesses that pay the Yorkshire Coast BID levy.
The Yorkshire Coast BID Company is responsible for implementing the business plan, with key performance indicators in place.
The Yorkshire Coast BID cannot, by law, replace or substitute those services provided by your business rates. The Yorkshire Coast BID has to describe the services already provided by your business rates. It does this by agreeing Baseline Statements with the relevant public agencies. The BID is then required to describe the additional services it will provide against clear timelines, costings and performance indicators.
Any businesses that are formally exempt from paying the BID Levy that feel they can benefit from the projects and services or that it helps fulfil corporate social responsibility objectives can opt to contribute voluntarily. The amount to be paid will be agreed by the Yorkshire Coast BID Company.