BIDs are directly funded via business rates. They spend public money, and have a significant impact on important public spaces, but are generally not subject to Freedom of Information law.
We are listing BIDs on WhatDoTheyKnow because we think they should be subject to the Freedom of Information Act. WhatDoTheyKnow is not only an FOI service: we also actively seek to expand the scope of access to information law, and will add bodies to the site if it is clear that they should be open to public scrutiny.
Business Improvement Districts were introduced via Part 4 of the Local Government Act 2003.
Most BIDs are focused on shopping streets, but there are others which work around industrial estates, and a handful seek to boost the tourism sector in their areas.
BIDs’ activities vary from body to body. Examples include:
- Croydon BID funds police officers and specific police operations (Team London Bridge BID has a similar programme)
- MyMiltonKeynes has street cleaning and pest control projects.
- Halton Chamber Enterprises Ltd, which runs the Halebank and Astmoor Business Improvement Districts, provides defibrillators
- Brilliant Brighton runs Christmas light displays, and provides hanging baskets and bunting.
The establishment of a BID requires the support of both:
- the majority of business rate payers in the relevant sectors and area, and
- those representing a majority of the rateable value relating to the votes cast.
The local council responsible for collecting business rates may veto a proposal for a BID, but once it has been approved the council is required to collect the “BID levy” alongside business rates and pass it on to the BID organisation.
While these ballots provide a democratic mandate for BIDs, the ability to scrutinise how a BID is run during its period of operation is important so that people can assess the performance of these organisations and assure themselves that the public money they are responsible for is spent appropriately.
BIDs can increase the level of influence businesses have in their areas of operation. One argument in favour of BIDs is they correct for an “influence gap” arising due to the fact businesses don’t have a vote when it comes to electing local councillors. On the flip-side of that, BIDs can be argued to reduce the ability of local residents to influence projects relating to their local shopping streets, or other areas of BID activity.
“Business Improvement Districts (BIDs) have proven successful in involving businesses in the development of local economies, addressing a previous influence gap – but there is no parallel system for residents to participate, other than via indirect means with their local councillor or planning system. This leaves those who have ideas about how to shape their places without a strong voice.”
While listing BIDs on WhatDoTheyKnow won’t directly give people a greater say in how BIDs which impact their local areas are run, greater transparency will hopefully enable informed lobbying, better quality media reporting, and enable those running the organisations to be held to account. WhatDoTheyKnow is open to all, anyone with an interest in the operation of a BID, be they a local resident, a levy paying business, or anyone else, is welcome to use our service to request information from a BID.
All public bodies which receive funding via council tax, such as parish councils, Police and Crime Commissioners and Fire Authorities are subject to FOI. It seems right that bodies funded via a levy collected as part of business rates should also be subject to the Act.
Enabling people to request information from BIDs in public, and automatically publishing any responses, will hopefully improve the transparency of these organisations. If there are refusals to provide requested information, these may be cited by those who, like us, think that BIDs should be made subject to the Act.
A new approach to developing the public body database
We are currently listing around 300 BIDs on WhatDoTheyKnow.
At the time of writing we don’t hold an email address for around 120 of them. If anyone seeks to make a request to those we don’t have an address for, they will be prompted to look for an email address for us to use, and let us know if they find one.
To-date, we’ve generally avoided listing bodies without email addresses, although doing so would closely copy a model that’s worked well on mySociety’s WriteToThem site for many years — where someone wants to email their MP or councillor and we don’t have an address, we will ask users to see if they can find the required details.
For WhatDoTheyKnow, this is an experiment to see if listing bodies without an address encourages users to find them for us. We hope to experiment with more nudges like this, to see if they motivate users to help us keep our database updated — thus spreading the load of a task that would otherwise take up quite a bit of our time.
Image: Artur Kraft