Payment and costs
How much is a typical BID levy? How much is it likely to cost?
The BID levy has been set currently at 1.5%. BID levies vary depending on priorities, and will be agreed in advance. It’s anticipated that Saffron Walden small businesses might pay between £75-£150 per annum. Businesses occupying premises with a higher rateable value will pay more. The table below shows the estimate of the amount payable by Business Rateable Value band. Go to the Valuation Office Agency on Gov.uk to find out the business rateable value of your premises.
Business Rateable Value
Payable BID Levy @ 1.5% p.a*
£0 - £4,999
£5,000 - £9,999
£75 - £150
£1.44 - £2.88
£10,000 - £19,999
£150 - £300
£2.88 - £5.77
£20,000 - £29,999
£300 - £450
£5.77 - £8.65
£30,000 - £39,999
£450 - £600
£40,000 - £49,999
£600 - £750
£11.54 - £14.42
£50,000 - £74,999
£750 - £1,125
£14.42 - £21.63
£75,000 - £99,999
£1,125 - £1,500
£21.63 - £28.85
£100,000 - £124,999
£1,500 - £1,875
£28.85 - £36.06
*This may be slightly higher or lower depending on the costings in the Business Plan dictated by the activities requested by business within the BID District.
What is a typical BID budget?
The majority of BIDs’ annual income is £200,000-£600,000, but the range varies from £50,000 to £2m. For Saffron Walden BID we are looking at a possible budget of £250,000 over a five year period.
Is it true that if a business owner won’t pay towards it they could end up in court?
Businesses will be consulted on concept, proposals and plan before voting – so will be expected to contribute as agreed by the majority.
Why not expand the proposed Saffron Walden BID area and share the cost among more businesses?
Sharing the costs would also dilute the benefits. By focussing on town centre issues we can ensure that resources are targeted.
Will all businesses situated within the BID area be subject to the BID levy?
A BID levy threshold has been set at £5,000 pa so these businesses with a lower rateable value will not have to pay but will still benefit.
Do councils pay the levy?
Yes, if a council owns property in the BID zone, they must pay. Councils often have a few business premises in a BID zone.
Do charities and charity shops have to pay the levy?
According to the 2016 Nationwide BID Survey, 57% of UK BIDs surveyed offered some form of discount on all or part of the BID levy. The remaining 43% of UK BIDs surveyed offered no discount of any kind. What Saffron Walden choses to do has yet to be determined.
What happens with empty properties?
The property owner gets to vote on the BID, but also becomes liable for the BID levy. There are two different approaches to paying the levy: chargeable day and daily charge. The approach varies according to circumstance.
I don’t pay rates. Will I still have to pay the levy?
Yes, the levy is based on rateable value and not on whether you pay rates. If the rateable value is over the threshold you will be liable to pay.
I am likely to vote ‘No’. Will I still have to pay?
Yes, if a majority vote ‘Yes’ under the dual key system (see above).
Can a BID create extra income?
Yes, and many BIDs are hugely successful at this. See page 21 ‘BID Finances - Additional Income’ in the 2016 Nationwide BID Survey for details.
Who will collect the levy?
This too has yet to be determined, but in all probability it will be Uttlesford District Council (UDC) on behalf of the Saffron Walden BID, simply because UDC has the mechanisms to do so and BID legislation provides for local authorities to be the billing body.