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INTEL: Business Improvement Districts

ended 10. August 2025

Have you ever come across Business Improvement Districts (BIDs) — a business-led initiative where local businesses collaborate to improve a specific area, often a town centre or commercial district? Or perhaps you are involved in one? Apparently, once a majority of businesses in an area vote to set one up, the BID is then able to charge a compulsory BID levy on all businesses in their district. Keen to get any insight and intel on BIDs for an investigative piece. One business owner on Newspage says there is one in his area and that he is aware of some BIDs that threaten to take you to court if you don't pay the levy, even though many business owners have no idea what they do. He says his BID is on its second 5-year term and, since it launched, over 1,000 businesses have closed in his area. Worst of all, they target local charities for the levy, who often cannot afford it. We're seeking intel and insights from you all for a piece that will run in a national broadsheet. Equally, you could have examples of BIDs that have done great things and be involved in one that has really supported the local business community. For now we're seeking some ground-up intel from you all.

7 responses from the Newspage community

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Editor
Chris Barry
Director at Thomas Legal
The BID in Cheltenham has been running for over two 2 terms and have made a tremendous difference to the town. Creating new events which bring people to the town and expanding on existing festivals to benefit local business. Lots of independents in town centres don’t have a marketing budget and a BID can be a good solution to this. Equally the corporate names on the highstreet may find it hard to monitor any uplift in footfall due to the intervention of a BID.

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Scott Gallacher
Director at Rowley Turton
I haven’t come across Business Improvement Districts personally and, in principle, they sound like a good idea — local businesses working together to improve an area. However, the concept of a compulsory levy, especially on businesses that may have little or no connection to the initiatives, doesn’t sit comfortably.

It reminds me of the stories we see from the US about homeowners’ associations — great when well run, but often controversial when they enforce charges on people who feel they get little benefit in return. For some smaller businesses and charities, that levy could be a real burden.
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Tony Redondo
Founder at Cosmos Currency Exchange
Totally Truro, Cornwall’s BID since 2007, levies 400 businesses for city centre improvements like cleaning, security, and events, investing £3.4M over a decade. Controversies include the Newham BID’s 2023 legal challenge against Cornwall Council’s road-narrowing scheme, deemed unsafe for HGVs, pausing work after a threatened injunction. No direct levy-related court cases are reported. Charities may face levies, though evidence is sparse. Successes include festive events and tourism boosts, such as ‘Truro in Bloom’ and festive markets, which have been well-received, drawing visitors and supporting local businesses. However, some call the levy a “stealth tax” amid economic strain. Small retailers and non-tourism businesses feel the BID prioritizes high-street chains.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Canterbury's Business Improvement District extracts £525,000 annually from local businesses through its mandatory levy, yet our historic city centre continues its steady march toward retail obsolescence. Since the BID's inception in 2014, Canterbury has lost 127 independent retailers while the vacancy rate has climbed to over 14%, well above the national average of 11%. Meanwhile, the BID proudly trumpets its achievements: £12,000 spent on Christmas lights, £8,000 on hanging baskets, and an impressive collection of promotional leaflets that nobody reads. Similar stories echo across Kent. Maidstone's BID collects £470,000 yearly while its high street vacancy rate sits at 17%, and Folkestone's scheme costs businesses £300,000 annually despite footfall dropping 22% since 2019.

This is a bureaucratic protection racket with a marketing budget, extracting mandatory contributions from struggling businesses to fund solutions to problems they can not control.
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Ben Foster
CEO at The SEO Works
We are part of a BID in Sheffield city centre. The levy is based on 1% of the rateable value of your premise, so it isn't a huge annual "tax" (in our case £520). The impact that it has on making the city centre a nicer space to be is tangible.

It has been running for a decade now and they send out a pack each year explaining what the money has been spent on, along with monthly newsletters. A significant positive is that they proactively remove any grafitti in the city centre which can be an eyesore and is a constant problem. They also work to promote and deliver events that drive footfall, ensure a safer night-time economy, improve accessibility resources, and operate a network of outdoor defibrillators.
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Sam Kirk
Managing Director at J-Flex Rubber Products
The idea of BIDs is great in principle – collective investment to benefit local businesses, however I find myself increasingly disillusioned with how levy money is spent.

Less than 5% of North Notts BID’s spend going toward business support speaks volumes. That figure is shockingly low for an initiative that is supposed to serve the needs of businesses. Meanwhile, a staggering 18% of the total spend is swallowed up by Management Costs & Overheads.

The BID’s focus seems to be on retail and feel-good community projects – which may be great for public relations but do little to help SMEs. I support community improvements, but not at the expense of the very businesses, including charities that rely solely on fundraising, who foot the bill.

We were promised support, advocacy, and value – not hanging baskets, branded signs and a radio station. It's time the BID re-evaluated its priorities and delivered meaningful support to the full spectrum of businesses it's supposed to represent.
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Justin Brandon
Director at Scape Interiors West
I am the director of a small independent furniture retail business and previously served as the Director of Coastal BID in Bournemouth for five years, representing our local Westbourne area. I stepped down from the role in May last year. During my time with BID, we achieved a great deal — from organising events in partnership with the British Motor Show to installing a giant illuminated teddy bear in our local arcade, which became an instagramable-feature at Christmas.

Our local shopping parade is home to many independent businesses whose owners are often busy balancing work and family life, leaving little time to run promotional events jointly with other businesses to promote our area. Like many high streets across UK, we've faced significant challenges with changing consumer habits and declining footfall. In this climate, BID plays a vital role by collecting levies and using them to bring our community together, promote the area, attract visitors and support local businesses.