Falmouth BID Questions and Answers
Where did BIDs come from?
The BID concept originated in the US and Canada in the 1970’s and was introduced into the UK in 2004 by the Local Government Bill. The first UK BID was Kingston.
Isn’t BIDs just about shopping?
No. A BID can operate in any defined geographical area and it is up to the BID proposer to agree which businesses participate in the scheme. For instance, 18 BIDs are operating on industrial estates and there are around 5 leisure related BIDs including one purely for the licensed sector. However, the BID programme does need to reflect the priorities of the levy payers and meet the needs of the area.
How long does a BID last?
A BID mandate is for a maximum of 5 years. A BID wishing to continue beyond 5 years must reaffirm their mandate through another ballot, based on a further proposal.
Will my landlord have to pay?
Landlords do not have any legal obligation to pay but many do so, on a voluntary basis
£94K isn’t much money; will there be opportunities to add to this?
Yes. The BID company would hope to secure additional contributions to supplement the levy before the vote and during the lifetime of the BID. This might include contributions from local authority sources, grant funding bodies, landlords, sponsorship and some activities might generate trading income.
Shouldn’t the councils be doing more?
The BID levy will provide additional services & will not fund activities that are the statutory responsibility of the local authorities or the police. The levy is not like non-domestic rates – all of it will remain in Falmouth to be spent on things that are important to you.
Falmouth Town Council, Carrick District Council and Cornwall County Council are committed to the principle of the Falmouth BID and are supporting its development through staff time and a budget to cover costs like this website, consultation events and the running of the ballot. They will also be responsible for paying the levy on their buildings and car parks which are located within the boundary as well as helping, where appropriate, to deliver the BID programme if the BID scheme is approved.
I already pay my rates, why should I pay any more?
In an ideal world, you shouldn’t have to pay any more. We appreciate that there is already a high burden placed on businesses – rates, rent, overheads etc. Unfortunately, non-domestic rates are collected locally but distributed nationally and Carrick only gets to keep a small proportion of what it collects. A BID scheme allows you to create your own pot of money that you can control and spend on what you feel are priorities; things that will help Falmouth and in turn, help you to trade. It’s up to businesses to decide whether they want to invest 1% into a collective pot.
I don’t really understand what I get for my rates now
As part of the BIDs development process, a baseline exercise of statutory services currently provided will be prepared. This was done in Truro and is published on the Totally Truro website. Businesses can clearly see what their rates go towards in terms of service areas like cleaning, highways, lighting etc. This acts as a safeguard for businesses to demonstrate that these areas will not be funded through the BID – the BID is about ‘additional’.
Where is the BID funding kept?
Held by the BID Company in its own account to be spent only on the projects approved by the directors of the BID company and in accordance with the BID proposal
If the BID is approved, when would it start?
The intention is to go to ballot in February 2009 with a start date of April 2009.
Are BID projects and services monitored?
Yes - to ensure that they deliver the added value and outcomes agreed in the BID Business Plan
Who gets to vote for or against a proposed BID?
All ratepayers will be liable to pay the additional BID levy would be able to vote in the ballot. Businesses under a rateable value of £5,000 will be exempt but these businesses can voluntarily opt to be part of the BID, if approved, by paying a minimum of £50 per year.
If businesses vote no, will they still have to pay?
Yes, if a majority (over 50%) of those that vote, vote in favour by both number & rateable value, the levy will become mandatory. Payment of the levy carries the same enforcement as non-domestic rates
What form does the ballot take?
The ballot will take place by post and the ballot paper itself will be sent to the ratepayer's billing address. Proxy voters can be appointed allowing larger businesses to pass the ballot paper to the appropriate decision maker. Under the legislation, Carrick District Council has to be the ballot holder but it can appoint an independent organisation to run the ballot e.g. Electoral Reform Services.
Is it just the private sector who pays the levy?
No. Any non-domestic ratepayer with premises over £5,000 rateable value within the boundary will pay the 1% levy. This will include charities and the public sector who will pay on their buildings and car parks in Falmouth.
How can you reassure us that the BID money will be safeguarded?
A BID company will be set up with a board of directors who will oversee the BID programme. Under the legislation, the local authority has to run the ballot and then if successful, collect the levy on behalf of the BID company. The levy is then transferred over to the BID company at regular intervals, agreed in an operating agreement which both the BID company and the local authority sign before the BID goes live.
Is BIDs another tax with a new name?
No, it's an investment. Unlike your business rates, the money doesn't go to the Government. It all remains in Falmouth to be spent on things that matter to you. The BID will be run by, and for, local businesses and levy payers will have a stake in the Company.
Is this a way for local authorities to save money?
No. BID funds will support additional activities. It will not replace what is already provided by the Councils or the Police. However, some businesses in BID towns have chosen to spend their money on additional cleansing or increased security.
To find out more, click on the links on the right hand side of this page.
