BID for cash

Michelle Perrett explains how the Business Improvement Districts (BIDs) scheme will work.

Unfounded fears of all pubs opening 24 hours under the new licensing laws and the latest TV reports claiming many serve under-18s, mean the image of the pub is getting a little tarnished. The pub, it would seem, is the pariah of every high street, city centre or community, causing violence and mayhem.

However, we all know the reality is far from that. Pubwatch schemes, locally-agreed codes of conduct and responsible licensees are the hub of all communities. And it is these licensees that a new government-supported initiative, currently being piloted in 22 locations around England and Wales, wants to attract.

Investing for safety​

The Business Improvement Districts (BIDs) scheme will see business people, including licensees, coming together with the local authority and investing money in designated areas to improve safety and to contribute to projects they would like to see implemented in the immediate trading environment. The idea, which originated in Canada, has been introduced through the Local Government Act, which was granted Royal Assent in September 2003.

These projects are intended to be additional to local authority services and can be anything they believe will deliver increased footfall and therefore improve their bottom line. Improvements could include additional street cleaning, hosts to direct visitors around an area, increased marketing, Christmas lights and CCTV.

Work is now going on to finalise the secondary regulations, which contain much of the finer detail about BIDs. The first new schemes are expected towards the second part of this year.

Local partnerships​

Jacquie Reilly (pictured)​, project director for the National BID Pilot Project, says she believes BIDs can be successful as it is a local partnership to improve the area for local businesses.

"The pilots were set up in January and it's been a long learning curve for us. It is not about services that should be provided by a public body, it's about additional services," she explains.

The scheme works very simply: a positive vote of 51 per cent or more of all businesses in the area will allow it to set up a BID, which is then established as a limited company. All the firms in the designated area then vote on the projects put forward and pay an additional levy to fund these improvements over a number of years (the maximum is five years). After that time, the firms can vote to keep the BID or not.

"It's a democratic vote. The idea is that it is something that all businesses contribute to," adds Jacquie. "Get involved from the start and get involved with what you want."

The scheme is supported by the Bar Entertainment and Dance Association (BEDA), which believes it is a good way for the industry to show the government that it is serious about acting responsibly and being part of the community.

Jon Collins, chief executive of BEDA, says: "The government's alcohol strategy is explicit in that the licensed trade needs to be socially responsible.We are still in the early stages but licensees will be aware of the comments home secretary David Blunkett has been making about drink-related violence. In the National Alcohol Reduction Strategy it did say there needs to be voluntary contributions from retailers at a local level."

There will inevitably be concern that this is just another way to get additional funding out of local businesses.

Licensees are already being strangled by red tape and expect to be hit with the costs of the new licensing system. Could it just be another way of getting licensees to pay for local services and policing by the back door?

Bill Sharp, licensee of the Kings Arms in London Bridge, and representative of the Guild of Master Victuallers, is wary of the initiative. "It is definitely worth considering if you can improve your area through a joint effort and this should not be dismissed out of hand," he says. "But you have to look and see if it is just another way of getting money out of a business."

Jon disagrees: "We don't see BIDs as additional costs as they can be replacing a myriad of services. BIDs is a way to channel and pool funding and give business a chance to contribute." He says the Home Office has already promised the trade that it will not have to pay additional policing costs.

Jacquie also refutes the concerns. "The purpose of BIDs is about adding value," she says. "We would not encourage businesses to vote for something that does not add value".

Mark Hastings, spokesman for the British Beer & Pub Association, applauds the initiative. "This is a democratic way for local businesses to decide what are the priorities for their area," he says. "Everybody shares and contributes to what needs to be funded. It avoids what has been a problem in pubs being targeted."

For more details on BIDs, ring 020 7227 3468, email info@ukbids.org or visit www.ukbids.org

Pilot areas​

The 22 pilot areas for BID are:

• Bedford
• Birmingham
• Blackpool
• Bond Street, Regent Street and Oxford Street, London
• Brandon
• Bristol
• Bromley
• Coventry
• Ealing
• Greenwich
• Hammersmith & Fulham
• Hull
• Lincoln
• Liverpool
• Maidstone
• Manchester (Pictured: Manchester's Canal Street)
• Newquay
• Plymouth
• Reading
• Peterborough
• Rugby
• Swansea

Industry opinion​

• John Hayes, owner of Garbo's and the Pepper Lounge and chairman of BEDA, sits on the local strategic partnership and Scunthorpe town action group and is president of the chamber of commerce:​
  
  "Instead of wasting money and not being effective you can pool this money together. If you want things to be better sometimes you have to contribute. It can involve time and a little bit of money. I am going to talk to our town centre manager and start pushing for it."

Dave Daley, Laurel Pub Company, manager of Cahoots, Blackpool:​

"It is a great thing for the town and we need to regenerate the area. We are hoping that extra money will come from the pub companies to help. A BID would lift all the businesses - from restaurants and pubs to bowling alleys."

John McNamara, chief executive, British Institute of Innkeeping:​

"I think they are a marvellous idea. I like the fact that it is democratic and local businesses have a say in how money is spent. It's got to be seen as an additional source of funding going into an area. It's about local people taking control of their own area.

"The challenge will be getting the managed house operators and larger pubcos to contribute."