5 minute read
Frequently asked questions
Fre Questions quently Asked
What is a BID? How do I know what it will cost me?
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A Business Improvement District (BID) is a business-led and business-funded body formed to improve a defined commercial area, in this case Sutton town centre.
In the UK, the majority of BIDs exist in town centres, however they are also in industrial, commercial and mixed-use locations. The BID mechanism allows for a large degree of flexibility and as a result BIDs vary greatly in ‘shape’ and size. The average size of a BID is 300–400 hereditaments, with some of the smallest having fewer than 50 hereditaments and the largest over 1,000. Annual income is typically £200,000–£600,000 but can be as little as £50,000 per annum or over £2 million. Legislation enabling the formation of BIDs was passed in 2003 in England and Wales (with subsequent regulations published in 2004 and 2005 respectively) and in 2006 in Scotland. The first BID in England started in January 2005. The first Scottish BID started in April 2008 as did the first Welsh BID. BIDs were first established in Canada and the US in the 1960s and now exist across the globe, including in South Africa, Germany, Japan, New Zealand and Australia.
Who actually is Successful Sutton?
Successful Sutton is a not-for-profit company limited by guarantee. Successful Sutton is run by an Executive Team. We have a Board of non-executive Directors made up of representatives from the local business community, representing different business sizes, sectors and locations. Full details of the Board are available on our website.
In 2014, Successful Sutton achieved BID Accreditation. The accreditation is designed as a robust system to ensure the proper measurement of the impact that a BID may be having on its locality. This award confirms that Successful Sutton is well managed, has strong governance arrangements in place and complies with the Legislation and Regulations which govern Business Improvement Districts. A BID is funded through the BID levy, which is calculated as 1% of a business’ rateable value. A business with a rateable value of £20,000 would pay £200 per annum. Once a ballot is successful the BID levy is mandatory and payable annually for all eligible businesses for the 5 year term. BIDs can choose to exclude certain businesses from paying the levy (and therefore from voting in the BID ballot). Successful Sutton chooses to exclude the smallest businesses – those with a rateable value under £10,000 – and offers a reduction to charities and businesses in both Times Square and St Nicholas Shopping Centres.
What is the levy used for?
Outline budgets are in this 5 year business plan and our audited accounts are published on our website. Successful Sutton is a not-for-profit organisation and all expenditure is focused on activities and initiatives for Sutton town centre.
When do I get to vote and how does that work?
Every business receives one vote for each business premises they occupy. Each business is asked to identify the nominated voter for their business and this was confirmed through a mailout in March. Ballot papers are sent out by Sutton Council to each voter. These must be returned to Sutton Council by 5pm on Thursday 8th June 2017.
What choices do I get on the ballot paper? Who is standing for election?
There are just 2 choices – vote Yes to continue to support Successful Sutton for another 5 year term or No to cease the services and support from Successful Sutton. There are no third parties to vote for, it is a simple Yes/No vote.
What does the BID need to be successful in the ballot?
Vote Yes for a stron
There are two measures that the ballot needs to meet; a simple majority of those that vote, voting ‘Yes’, and a simple majority of the rateable value of the eligible businesses in the BID area voting ‘Yes’ .
What happens if the ballot is unsuccessful?
Successful Sutton BID and all its services and activities will cease to exist from 30th September 2017.
Throughout the 5 year term we continually consult with levy payers on what your key priorities are, and our executive team regularly meets with businesses through networking events and High Street activities. Please contact us on 020 8643 9304 if you would like us to visit you.
How do you ensure Successful Sutton isn’t just doing what the Council should be doing?
BIDs enter into baseline agreements with the local authority and other service providers which guarantee the level of service provision in the area. These ensure that any services the BID provides are truly additional. An Operating Agreement is also entered into between a BID and the local authority governing how the BID levy monies are collected, administered and passed over to the BID.
Each year we publish regular printed newsletters that provide updates on our activities and detail our activities. Our audited financial accounts are also published each year and uploaded onto our website. Our website is kept up to date with news stories and we produce a monthly e-newsletter that is distributed to every business by email. We report directly to our Board of Directors on progress against our Business Plan.
Is it just another tax?
No. The money does not go to the Central Government or Sutton Council. Funds are ONLY for the projects agreed and voted for by the participating businesses.
What happens if the property is currently empty?
If a property is empty and there is no current tenancy agreement then the property owner will be responsible for payment of the levy.
What do I pay my rates for?
Business Rates are a statutory local tax levied to provide generic services by the local authority. The Successful Sutton BID levy will pay for specific services and functions on top of the baseline services that Sutton Council provides. These additional services are agreed by the BID Board in consultation with our levy payers.
