- Business Improvement Districts set to receive £6.1 million in
response to the coronavirus (COVID-19) pandemic
- Hundreds of BIDs across England will receive support to help
cover their day to day costs for the next 3 months
- Today’s funding comes on top of the government’s
comprehensive package of support for business and workers during
the economic emergency
Hundreds of local business partnerships across England will share
£6.1m of funding to spend on projects that will help their local
economies through the uncertainty of the coronavirus (COVID-19)
pandemic, High Streets Minister confirmed today (1 May 2020).
The money will be paid to local authorities and dispersed to
Business Improvement Districts (BIDs). These are local business
partnerships that bring developers and communities together to
provide local leadership, drive regeneration and deliver projects
and additional local services.
Many BIDs are now playing a crucial role during these challenging
economic times, offering hands-on support to those businesses
affected, including advice services, increased security to
protect businesses that have closed, and providing key
intelligence to local and central government on the impact of the
coronavirus outbreak on their local economies.
High Streets Minister said:
The government has announced a comprehensive programme of
support for businesses to help them deal with the economic
impact caused by the COVID-19 pandemic and today we are
extending that support to Business Improvement Districts.
BIDs are uniquely placed and have a proven track record of
success in supporting local businesses, empowering communities,
championing our town centres and driving forward the renewal of
our high streets.
It’s only right that during these unprecedented times we give
them all the necessary support they need to continue operating,
so that they can carry on their vital work now and crucially
when we move into the recovery phase from the current crisis.
Today’s funding comes on top of the government’s comprehensive
package of support for business and workers during the economic
emergency including:
- the Coronavirus Job Retention Scheme where small and large
employers will be eligible to apply for a government grant of 80%
of workers’ salaries up to £2,500 a month, backdated to 1 March
and available for at least 3 months
- £330 billion worth of government backed and guaranteed loans
to support businesses including a new Bounce Back Loans scheme,
which will provide loans of up to £50,000 available to the
smallest businesses affected by the coronavirus pandemic
- a deferral of the next quarter of VAT payments for firms,
until the end of June 2020 - representing a £30 billion injection
into the economy
- a £12.3 billion package for local authorities to deliver
grants of up to £25,000 to eligible businesses in the retail,
hospitality and leisure sectors
- new temporary measures to safeguard the UK high street
against aggressive debt recovery actions during the coronavirus
pandemic
British BIDs Chris Turner commented:
Government has listened to the requests that we have made on
behalf of the BID industry.
I am exceptionally grateful to the numerous BIDs that have
actively supported and engaged with this process, particularly
those who joined in our initial Q&A sessions and completed
the online survey which, together, provided us with the
evidence that we needed.
My thanks also must go to those levy paying businesses that
have backed their BIDs in the request for assistance and to the
ATCM and the BID Foundation who have worked in partnership with
us on this.
I am pleased that the outcome is this announcement of much
needed support for the industry.
Bill Addy, Chair of The BID Foundation, said:
BIDs have already stepped up to support those affected by the
COVID-19 crisis.
This includes working with local councils, emergency services
and businesses to ensure help and information gets to those who
need it; supporting shuttered shops to adapt and deliver their
services online; and helping to coordinate safe and secure
spaces that meet health advice.
This new government support is a partial safeguard for
BIDs, which are paid for by their member businesses, and will
enable them in the short term to continue their vital
local efforts now and to plan for the future.
Simon Quin, Executive Director of the High Streets Task Force,
said:
BIDs have established networks and capacity in their local
areas which provide vital coordination and help, both for
businesses getting back on their feet and for communities that
will need guidance and reassurance to return to the high
street, when it is safe to do so.
By accessing this support, BIDs can ensure they continue to
make a real difference to the recovery of our town and city
centres.
BIDs are proven an effective vehicle of leveraging private
investment and have a significant role to play in high street
regeneration: in 2019, 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.
BIDs have been a key tool in the development of local leadership
and growth in high streets and town centres since 2004.
There are 261 BIDs in England, For more information, please visit
the British BIDs website.
The majority of BIDs in England collect their levies at the start
of the financial year and the support for BIDs has been
calculated on the basis that:
- BIDs in England spend their operational costs evenly every
quarter
- BIDs in England would have spent approximately £6.1 million
on operational costs
Funding to local authorities will come through a section 31
grant.
The money will go to Business Improvement Districts (BIDs), local
business partnerships that bring local authorities, developers
and communities together to provide local leadership, drive
regeneration and deliver projects and additional local services.
These monies will be distributed via a grant to local authorities
to be passed on to BIDs, and will cover funding for 3 months and
contribute to their operational costs.
Today’s announcement is in addition to measures announced in
March to support BIDs:
-
on 23 March we announced emergency legislation to support
BIDs in the Coronavirus Act 2020
-
the clauses enables BIDs to extend the maximum duration of
their BID arrangements until 31 March 2021, delaying BID
ballots
-
it delays BIDs’ ballots between Royal Ascent of the Act (25
March) and 31 December 2020 by extending the BID arrangements
until 31 March 2021
-
this allows businesses to focus on recovery from economic
shock before deciding whether to participate in BID
arrangements for the following 5-year period, and allows BIDs
to coordinate their places’ recovery
