For the BID to go ahead, two conditions must be met:
More than 50% of businesses who vote must vote in favour of the proposal. The 'yes' votes must represent more than 50% of the total rateable value of all votes cast, and there must be a minimum turnout of 25% of eligible voters. Under the legislation, if the BID is approved, all businesses regardless of how they voted will be under an obligation to pay the levy each year for five years until 31st March 2016. Collection of the BID levy carries the same enforcement weight as collection of the non-domestic rates.
The results of the ballot will be publicly announced in late autumn 2011. A 'yes' vote for Aberdeen will mean that great things would start happening on the ground from early 2012 with funds to deliver a comprehensive programme of benefits for everyone.
The Management
The BID would be run by Aberdeen BID Ltd, a wholly independent, non-profit distributing company limited by guarantee. It would have a Board of Directors, comprising of 15 members elected from all the business sectors, and one representative of each of the supporting Authoritative Bodies plus an Executive Team. They would be responsible for the delivery of projects ensuring that they are delivered on time and on budget to the highest standards possible.
Is a BID not just a way for Councils to save money?
Absolutely not, a BID scheme supports additional or improved services, provides new activity, and does not replace statutory activities or services carried out by the City Council, Police and other public agencies. The Aberdeen BID will have baseline agreements from the City Council and Grampian Police to ensure that businesses are not short changed in the future and to avoid any duplication of services. Both of these bodies have pledged their support for the BID and will contribute financially to it because they have commercial property in the BID area. Businesses will continue to benefit from the services which the Council and Police provide for the benefit of businesses and public such as cleaning, lighting, access and safety.
Baseline agreements have been written by Heads of Service at Aberdeen City Council and Grampian Police. They can all be viewed at www.aberdeenbid.org. These documents will define the benchmarks for the provision of these services and how they will be measured.
Is this not what I pay my Business Rates for?
No! Business Rates are a national tax that is collected by Local Authorities on behalf of Central Government and then redistributed according to a national formula. The Council's income from this redistribution is spent throughout the city on statutory and discretionary services for residents and businesses. Businesses have very little say in the way the funds are spent. The great thing about a BID is that the projects are set by businesses, through a series of consultations. The money is kept local, and spent locally, for the benefit of the local area. The BID levy is nothing to do with business rates, merely based on the rateable value of the business unit, and the funds are invested within the BID area. The funds collected through the BID levy will be kept in a separate BID bank account, held by Aberdeen BID Ltd. The income from the levy and from voluntary contributions will be used to fund local activities and services, as decided by the businesses.
Isn't the recession a bad time to be developing a BID?
Actually this is a good time to develop a BID because it provides an opportunity for businesses to work together to drive down overheads. A BID also makes your money go that much further with larger marketing budgets which can reach out and promote your business to more people both locally and further afield. A BID offers great opportunities for economies of scale.
How much would my BID levy be?
In order to deliver the projects that you identify effectively and within budget, the Aberdeen BID levy is proposed at 1% of your NDR rateable value (RV) including empty commercial properties. If you are not sure what your rateable value is, or to check if your premises would be included, please contact Aberdeen BID Project Team 01224 523374 or visit www.aberdeenbid.org. Please be aware that your value is not what you are asked to pay, as you only pay just over 40p in the pound of the value. To calculate your annual levy, divide your RV by 100. For many of the BID businesses the actual cost will be less than £1 per day.
The following table gives you an idea of your likely contribution:
| YOUR RATEABLE VALUE | YOUR ANNUAL LEVY | COST PER DAY |
|---|---|---|
| 30,000 | 300 | 80p |
| 60.000 | 600 | £1.60 |
| 90,000 | 900 | £2.50 |
| 120,0000 | 1,200 | £3.20 |
Why exclude businesses with a rateable value less than £27,500?
The cost of collecting the levy from smaller businesses outweighs the income generated from them. It also means that the number of businesses is reduced by over 400, meaning that we can communicate with eligible businesses more effectively. Businesses under the threshold, plus religious and charitable organisations, will be exempt from the levy, will not have a vote, but will still benefit from the projects.
Who is eligible to vote?
This is laid down by statute from the Scottish Government, not dissimilar to that in the rest of the UK; the rate paying body is eligible not the property owner. You will be asked, prior to the ballot, to identify the actual person responsible to vote, likely to be the business owner in the case of locally owned businesses. In the case of larger companies a person at head office level is most likely, you should contact your head office now to find out who that is, and keep them informed.
