FAQ's

The aim of a Business Improvement District (BID) is to fundamentally change the trading environment within a defined area by working in partnership with businesses, property owners, the local authority and the police. Businesses will be able to solve issues that have previously acted as a barrier to business growth. A BID will add value to your bottom line by improving your business trading environment, attracting more visitors and encouraging those who come to stay longer. Businesses within a defined area identify projects or services that will transform their area and agree on the level of funds they will pay to make it all happen. The duration of the BID is not more than five years.

No, the money does not go to the Central Government or the District Council. Funds are ONLY for the projects agreed and voted for by the participating businesses.

Only a small percentage of your business rates return to the District Council. This, together with council tax, pays for statutory and non-statutory services such as cleansing, lighting, policing etc. The BID levy is a specific business investment for projects identified and controlled by the businesses. It provides additional improvements and benefits to services already provided by the District Council and Police. The BID will ensure that services and investment will continue at the current level and negotiate improvements on your behalf where necessary.
Not only does the BID Company keep every pound, you get to decide how it should be spent.

Although Hitchin has attractive shops, visitor numbers are static or declining due to a number of factors that we are unable to control as individual businesses. Surveys carried out confirmed that our visitors choose our town out of several different options, they want to see more and better shops, including a more attractive market and a higher quality shopping area. Only by working together can we resolve these issues and change perceptions whilst competing with new out of town developments or other local towns and cities that are improving and extending their facilities.

The Hitchin BID seeks to make the town centre:

• More attractive
• Safe and secure
• Better promoted
• More welcoming and accessible

A new BID private limited company, which is limited by guarantee and has its own management board, will be established. This, not-for-profit company is independent and 100% accountable to you. Its board members are made up of individuals who represent the cross section of business sectors that contribute to the levy.

There are no right or wrong figures regarding how much this levy should be nationally, but it usually lies between 1% and 2.5%, with lower and upper end caps. The levy will be agreed based only the cost of the projects the BID wants to deliver. By investing collectively as a community, our money can work harder and smarter through shared costs and resources.
In Hitchin, we have based our budget on 2% of rateable value, with a minimum amount payable of £50 pa and a maximum amount payable of £5,000. At these levels, we will be able to invest around £200,000 every year on projects. For example a business with a rateable value of £20,000 will pay only £400 per year – that is under a tenner or a bottle of decent wine every week!
What else could you buy as an investment that would give you a quarter of a million to spend every year?

There are 80 BIDs operating throughout the UK, so we are able to learn much about what works and what the impact of projects is in a BID area. Rugby was one of the first formal BIDs to be created and in the three years since it launched has seen a substantial improvement in the performance of its market, a remarkable transformation of its physical cleanliness and a dramatic downturn in evening anti-social behaviour. Marketing and promotion for the town is noticeably stronger too, carrying the fight back to its direct competitors.
The Hitchin BID will improve your profitability through similar collective actions, transforming the look and feel of the town centre, reversing the negative image, increasing footfall, spend and dwell time.
It is fully supported by the District Council, who have invested in its development as part of its commitment to you as a business and the future of the town.

Over the next few weeks, we will develop a business plan from your identified priorities. You will be presented with this in February next year, together with a confidential voting paper asking whether you want it to go ahead. It is important that you return this vote for the BID to go ahead. In April the results will be announced. If the majority of businesses vote for the BID, ALL premises in the area will be subject to the levy. This overcomes the problem of a few businesses paying for improvements that benefit many. This is the major drawback to the structure and function of the current Hitchin Initiative.
We are hoping to start delivering solutions and action by June or July 2009.

The person(s), registered company or organisation that is the ratepayer for non-domestic rates of premises within the Business Improvement boundary. If the business is in joint names, a registered Company or a charity/non-profit making organisation, the person nominated will be the only person entitled to vote.

The ballot has to meet two tests. Firstly, there must be a simple majority (above 50%) of those eligible to vote. Secondly, those voting in favour must represent a majority of the aggregate rateable value of businesses voting.
The full ballot procedure and ballot papers will be forwarded to those ratepayers who are eligible to vote.
If the ballot meets the two tests and there is a YES vote of those ratepayers eligible to vote, the Council can issue BID levy accounts and Hitchin BID can proceed to implement the proposals in the Business Plan.

The Ballot paper will be issued at the beginning of March 2009, and you should receive yours (one per property you pay rates on) for the 9th March 2009.

The Ballot is between the 9th March and the 6th April 2009. All ballot papers must be returned to NHDC’s Electoral Services Department in Letchworth by 5 pm on the 6th (this is “the Day of the Ballot”). Any votes received after that date will not be counted.

Any person, registered company or charity/non profit-making organisation is liable for the BID levy if they are the occupier/leaseholder of a property within the BID area.

The rateable value used to calculate your BID levy will be fixed as at 1st January 2009. This rateable value will be used to calculate your BID levy. If your rateable value goes down on appeal to the Valuation Office Agency, your BID levy will not be affected.
There will be an annual increase of the sum paid in line with inflation. New properties, splits and mergers, will be fixed at the date it was brought on to the non-domestic rating list. In short, no reduction or increase in rateable value will affect the BID levy.

North Herts District Council is the collecting agent for the levy. They will send you a Bid levy account for you to pay on behalf of the BID Company. The BID levy is paid direct to North Herts District Council within 14 days of the account being sent to you.
There is no instalment facility but if you are experiencing difficulty in paying the account, you can telephone the number on the invoice to discuss payment.
The money collected by the District Council on behalf of the BID Company will be set aside and handed over in its entirety. The BID is not being charged for this facility.

If the property is removed from the rating list or ceases trading, you will not have to pay a BID levy from that date but the liability to pay will then reside with the property owner. You will however be liable for the BID levy until that date. You will have to telephone the number shown on the Levy Invoice providing details of the date you vacate your property and arrange for a final account to be sent to you together with any refund if you have paid your BID levy to the end of the financial year. The bill for any outstanding sum for the year will then transfer to the owner or the new tenant.

This is a business led initiative and like you we are running businesses of our own. We therefore need as much help as possible; both before and after the vote to make sure it is a success. The more help we have, the less time we need to commit. Even one hour a week is a small investment in time for the huge return on offer!
Contact Keith Hoskins, your BID Development Manager on 01462 453335 or via Keith@hitchinbid.com