A BID (Business Improvement District) is a defined area in which a levy is charged on all business rate payers in addition to the business rates bill. This levy is used to develop projects which will benefit businesses in the local area. Constituted by UK law in 2004, a BID is a powerful, independent voice representing the interests of a varied community of organisations, committed to working together to ensure that the area continues to progress whilst providing the best possible trading and working environment for its occupiers.
All businesses within the BID area will pay a set levy. This money will then be regenerated to provide additionality that will benefit businesses within the area. These extra benefits are aimed at vastly improving the quality of the area for the businesses, visitors, and employees within it as well as improving attractiveness to new investors. This can include physical projects such as better lighting and street cleaning as well as the creation of green spaces, crime reduction programmes, events, transport and accessibility improvements, in addition to marketing, networking and inward investment initiatives.
Each BID term is for a period of 5 years, and NE1's most recent term began on April 1st, 2019. Every 5 years a ballot is held and each business receives a vote as to whether they would like to renew NE1. NE1's next ballot will be in Autumn 2023, with the new term starting on 1st April 2024 if renewed.
If your business has a rateable value (RV) of £20,000 or above, you will pay a levy amounting to 1% of your Rateable Value. The levy is a legal requirement just like Business Rates and is treated as a statutory debt. The legislation which relates to the BID levy is The Business Improvement Districts (England) Regulations 2004 and the Non-Domestic Rating (Collection and Enforcement) (Local Lists) Regulations 1989. If you are not sure of the rateable value (RV) of your business, you can check it on the Valuation Office Agency (VOA) list. Keep in mind that your business might be split into various hereditaments which is a term used in UK local taxation to refer to rateable units of property - https://www.gov.uk/find-business-rates
Every lease-holding business within the BID boundary which has a rateable value of over £20,000 P/A will be liable to pay the BID levy. Where the property is empty and a lease does not exist, the owner, of the non-domestic rated property within the BID area is liable for the BID levy.
The BID levy is charged annually on 1st April. BID Levy Bills are issued and collected on our behalf by Newcastle City Council’s Non-Domestic Rates Team. The levy is calculated based on the rateable value of the premises on 1st April and is payable by the occupier on that date regardless of the time they have been/intend to be located there. If there is no active lease on the unit the bill will fall to the landlord/possessor of the premises.
Newcastle NE1 is overseen by an operating board, who ensure that what is delivered is in line with the business plan. They approve the BID budget and the main projects delivered by the BID Team. The board includes members representing the sectors and areas present within the BID and they oversee strategy for the organisation, finances, company structure, and major long-term decisions. Board members support the BID on a voluntary unpaid basis. The board meets bi-monthly.
You can download a copy of the BID boundary map here - https://www.newcastlene1ltd.com/what-we-do/documents
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