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Setting up a Business Improvement District (BID): local businesses will be able to provide additional services to those already provided by councils.
New York-style schemes aimed at revitalising town centres and other business locations took a step closer today as Local Government Minister, Nick Raynsford, published new draft Government guidance.
The guidance shows how businesses and councils can work together to solve local problems, such as reduce crime, improve public transport, encourage commercial activity and create jobs.
The draft guidance provides practical information and advice to businesses and councils wanting to set up a Business Improvement District (BID) in their local area.
A BID is a partnership arrangement through which councils and local businesses can take forward schemes of benefit to the local community. Local businesses will be able to establish a BID to provide additional services to those already provided by councils.
Nick Raynsford commented:
"BIDs are a vital part of our wider agenda encompassing urban and community regeneration issues including liveability, cleanliness, safety and attractiveness of street and public spaces.
"Many business groups, including the CBI, have already expressed their support for BIDs and we have developed today's draft guidance in close consultation with all interested parties. In particular, they have praised the Government's decision to use legislation to set the broad framework and indicate the details that will be addressed through guidance.
"The schemes will encourage improvements within BID areas. They will help to attract new businesses and will encourage people to remain in these urban areas, stemming the exodus from our towns and cities.
"BIDs will deliver specific, measurable benefits to businesses, which might include increased footfall in town centre areas, lower costs as a result of better security and higher asset value as a result of an increase in an area's status as a location.
"BIDs will also involve and benefit the local community, providing local solutions to local problems. They will help create jobs and help build areas that are welcoming, vibrant and successful.
"Every scheme will be different. Each scheme will address the exclusive needs of the community. This might be about making an area safer, improving its appearance, upgrading services, or improving access.
"Today's publication of the draft BID guidance marks a significant step in our vision for making our towns and cities places that people are proud to live in, work in, and invest in."
Sir Jeremy Beecham, Chairman of the Local Government Association, commented:
"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."
Alan Tallentire, Chairman of the Association of Town Centre Management stated:
"The draft guidance and the launch of the BIDs pilot scheme today are important strides forward in the delivery of BIDs. The ATCM has been closely involved in writing the guidance following a decade of extensive work and research.
"The pilot scheme will announce the 23 selected locations that will be taken through a structured process, enabling them to seek a mandate for a BID as soon as the legislation comes into effect. The pilot will be instrumental in validating the guidance and the ATCM will continue to work very closely with the ODPM. BIDs will not be a panacea to all problems but will be a vital tool in enhancing the vitality and vibrancy of our towns and cities."
Services provided in this way could include more frequent policing and installation of CCTV cameras, measures such as rapid response to remove graffiti and litter, investment in the visual appearance of an area, such as planting trees, or even providing local training and employment schemes.
The guidance also underlines how property owners can play a role in the success of BIDs. Property owners will be able to contribute financially to a BID through either a voluntary contribution; or by paying the additional BID levy on behalf of their tenants.
Today's guidance takes forward the Office of the Deputy Prime Minister's plan for thriving, sustainable communities, which will be announced shortly.
The BID concept is taken from the United States, where they have transformed many commercial centres - some of the most notable being in New York City.
The legislation to allow the introduction of BIDs is included in the Local Government Bill, published on 26 November 2002.
Read the draft BIDs guidance