| Additional Information about the BID |
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This information forms part of the Waterloo Quarter BID proposal. It sets out in further detail the technical and budgetary information relating to the BID. Who is proposing this initiative? Who is proposing this initiative? The BID proposer is the Board of the Waterloo Quarter Business Improvement District (BID) Ltd. The renewed BID body will be Waterloo Quarter Business Improvement District (BID) Ltd. [TOP] Waterloo Quarter BID is an umbrella organisation for two Business Improvement Districts (BIDs), which sit in Lambeth and Southwark. The Southwark and Lambeth BIDs are run as two separate ‘trading arms’ to the Waterloo Quarter BID. The BID Regulations require the accounts for the two separate boroughs to be held separately. However, the overall aim is for the Waterloo Quarter BID to achieve parity of service for all businesses, regardless of the local authority area in which they sit. The umbrella BID is run by the Waterloo Quarter BID Company. Its Board of Directors is formed from representatives from the local business community, all of whom are BID levy payers. Representatives are drawn from both the Lambeth and Southwark sections of the BID. Two main theme groups are in operation: Marketing & Business Development and Environment & Public Realm. These are sub-groups to the Board and are formed from BID Members, who are responsible for developing detailed project budgets for their group, which are then passed to the Board for approval. All businesses are given the opportunity to be represented on these sub-groups and the Board. Additional theme groups will be set up as and when required. [TOP] How long will the renewal last? The next BID term will be five years in duration from 1 April 2011 to 31 March 2016. Before the end of this period, the BID Board may choose to seek renewal of the BID for a further term, through a renewal ballot. [TOP] What area is covered by the renewal proposal? The area covered by the proposals comprises parts of the London Boroughs of Lambeth and Southwark as shown in the map here. The BID Board has decided to slightly extend the existing BID area following requests from businesses and to achieve economies of scale. The renewed BID area will cover part or all of the following streets:
Shouldn’t The Council be paying for this through my business rates? There is no link between the amount of business rate collected by The Council and the amount it receives back from Central Government to deliver services in the area. A BID, in comparison, generates revenue that is 100% ring-fenced for the area in which it is collected, to be spent on projects for the benefit of businesses that pay the BID levy. All services provided by the BID will be additional to those provided by The Council. Additionality is ensured through the production of a ‘Baseline Agreement’ with each Council setting out the standard level of service that is already provided for the BID area. This ensures that the BID levy only funds services and projects over and above this level. [TOP] How will the BID renewal ballot work? The ballot will be managed by the Electoral Services Departments within Southwark Council and Lambeth Council to ensure impartiality, and will run between 27 January 2011 and 24 February 2011.
Who is eligible to pay the levy? Are there any exemptions? All types of business are eligible for the BID levy. Hereditaments (rated ‘units’ of business space) with a rateable value of less than £6,000 will be exempt from paying the levy and therefore will not be eligible to vote in the ballot. Currently this means approximately 402 rateable properties will be eligible for the vote. Businesses with a rateable value of less than £6,000 will be welcome to contribute on a voluntary basis, which will allow them to be involved in the BID Company. If, as a result of a revaluation, a business’ rateable value shall exceed £6,000 at any time during the BID term, they will become eligible for the levy. The BID levy payer in cases of unoccupied hereditaments will be the owner of the whole of the hereditament and the BID levy will be 1.3% of the rateable value. Where hereditaments are unoccupied at the time of the notice of ballot, the owner will be entitled to vote in the BID ballot. Businesses with mandatory charitable relief from business rates will be given a discount of 50% of the BID levy. Those hereditaments which are exempt from empty property rates will not be exempt from the BID levy. The following will not be eligible for the BID levy, or for the vote:
The BID levy is a daily charge. Occupiers will pay the levy at the rate of 1.3% of rateable value of each hereditament listed in the 2010 Ratings List as at the date of notice of ballot, generating approximately £508,000 per year for the area. The BID levy will increase by 3% annually to take inflation into account. The BID multiplier will be as follows:
The table below sets out the indicative levy payable for businesses depending on their rateable value.
If you’re not sure what your rateable value is or how much your levy would be, please get in touch via the contact details at the foot of this document. [TOP] What if I already pay rates and service charges as part of my rent? Where the occupants of hereditaments pay an inclusive rent or other charge for occupying space that includes the rates charge, the owner is liable to pay the BID levy and, consequently, is eligible to vote in the ballot. [TOP] I’m thinking of taking on more premises in the BID area. Will I have to pay a levy on these when I move in? Businesses which begin to occupy existing hereditaments during the BID period will be liable to pay the levy for their period of occupation, providing the hereditament remains eligible for BID membership. The BID levy will be extended to occupiers of hereditaments built or first occupied in the BID area during the life of the BID, assuming that they are otherwise eligible. In these cases the levy will be calculated on the rateable value entered in the 2010 Rating List. [TOP] Is there an upper limit to what businesses will have to pay? A cap of £40,000 has been set on the BID levy. No single hereditament will have to pay more than this amount. [TOP] How will the BID levy be collected? Arrangements for the collection of the BID levy will be set out in two formal Operating Agreements between Waterloo Quarter BID and Lambeth and Southwark Councils. The Councils will be responsible for collecting the BID levy on behalf of Waterloo Quarter BID. The BID levy will be payable in one instalment per year. Bills will be sent in March and payment will become due on 1st April each year. Enforcement measures for the collection of the BID levy will be detailed in the Operating Agreement between Waterloo Quarter BID and Lambeth and Southwark Councils. The BID levy is a mandatory charge and collection is enforceable in the same way as the business rate. After 14 days non-payment of the BID levy, a reminder will be sent giving a further 14 days to pay. If after a further seven days from the payment date stated in the Reminder Notice the outstanding sum of the BID levy has not been paid the Council shall make an application to the Magistrates Court for a Liability Order to recover the outstanding sum of the BID levy. The BID Company will strongly pursue collection of the BID levy, using all available enforcement mechanisms. Non-payment of the BID levy will incur additional costs to the business in question. [TOP] Who will pay for the costs of the ballot? The costs of the BID ballot, if successful, will be met by Lambeth and Southwark Councils. In the event of a failed ballot, Southwark and Lambeth Council may choose to pass on the costs of the ballot to Waterloo Quarter BID. [TOP] The BID Board & management structure oversee the activities of Waterloo Quarter BID Ltd and the two BIDs (Southwark and Lambeth) operating under the company in a holistic manner. Each BID operates as a separate trading arm under the umbrella of the Waterloo Quarter BID Ltd and will maintain a separate cost code in the financial reporting. There is one Board for the company as a whole, consisting of representatives from both BID areas. Waterloo Quarter BID Ltd will continue to aim to keep the ratio of businesses on the Board at approximately two Southwark businesses for every three Lambeth business to reflect the numbers of hereditaments in each area. The same will apply for the membership of the BID’s two sub-groups. The Board representation is below. The sector breakdown reflects that of the businesses in the BID area and ensures a representative body to lead the development of the Waterloo Quarter BID. In addition, Observer places are currently available on the Board for the following organisations: LB Lambeth, LB Southwark, Metropolitan Police, Transport for London.
How can I get involved in the running of the BID? All new BID levy payers and all existing BID levy payers not currently formal Company Members, will be invited to become a Member of the Company. Company Members may subsequently nominate themselves for directorships in their relevant sector or to sit on one of the BID’s sub-groups. The Board will manage the Executive Team, who will deliver the projects and services as set out in the BID Proposal. [TOP] Can the BID arrangements be altered? Only minor amendments can be made to the BID arrangements without seeking formal approval from the BID Members. BID arrangements may be altered without an alteration ballot, as long as there is no proposal to alter:
Where BID arrangements may be altered without an alteration ballot, the alteration will be made by a decision of the Waterloo Quarter BID Board, following consultation with both Councils. [TOP] |
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| Last Updated on Friday, 07 January 2011 14:27 |
