Cookies on Legislation.gov.uk

The cookies on legislation.gov.uk do two things: they remember any settings you've chosen so you don't have to choose them on every page, and they help us understand how people browse our website, so we can make improvements and fix problems. We need your consent to use some of these cookies.

Search Legislation

Advanced Search

Coronavirus Act 2020

Contents

Business Improvement Districts

  1. Business Improvement Districts ("BIDs") are business-led partnerships which are created voluntarily to deliver additional local services and upgrade the local environment for the benefit of business. A BID is a self-defined area, in which local businesses vote to approve the BID arrangements; those arrangements include raising a levy on all businesses covered by the arrangements. This levy is collected by the Local Authority and used by the BID organisation to undertake projects that benefit the local area.
  2. There is a legal maximum of five years within which BIDs can operate as set out in section 54 of the Local Government Act 2003. Any which operate for longer than the five-year maximum without holding another business vote, or ballot, will place those BIDs operating at legal risk.
  3. The overall policy intent is to support businesses, particularly in high streets and town centres across England, as BIDs have a role to play in high street regeneration: in 2019, 259 BIDs across England raised over £106.7 million through levy payments to invest back into their respective towns and cities. Their role will be even more important in the recovery phase from the current crisis. 

Extension to ballots

  1. The Government accepted the Electoral Commission’s recent recommendation to postpone local elections for a year due to COVID-19. The Government wishes to also include BID ballots within this delay to avoid local authorities making inconsistent decisions on whether to delay the vote.
  2. Without the Act some Local Authorities would interpret the delay to local elections as cause for delaying BID ballots, which would also lead to the extension of BID arrangements beyond the legal maximum of five years, as set out in, section 54 of the Local Government Act 2003, which will place those BIDs operating beyond the five year maximum at legal risk.
  3. There is a risk that by legally forcing BIDs to go to ballot during the COVID-19 pandemic they will not succeed, as businesses are concerned about the economic impact of COVID-19 and would be unwilling to pay the levy when they are at risk of administration or insolvency (which runs against the Government position of wanting to see more BIDs established due to their benefits to high streets, town centres and businesses).
  4. The Act temporarily extends the maximum duration of English BID arrangements. This is to ensure consistency of the BIDs legislation with the delay introduced for local government elections, to give local government, BIDs and local business communities certainty and clarity at a turbulent and disruptive time.
  5. BID arrangements that are in place on the day of Royal Assent (25th March 2020) but are due to terminate on or before 31st December 2020 are to be extended until 31st March 2021. The purpose being to maintain the status quo to enable a further ballot to take place after the current emergency has abated.
  6. The Government proposes to temporarily extend the maximum duration of Northern Ireland BID arrangements. This is to ensure consistency of application of the Business Improvement Districts Act (Northern Ireland) 2013 with the delay introduced for local government elections, to give councils, BIDs and local business communities certainty and clarity at a turbulent and disruptive time.

Back to top