A business improvement district (BID) is a geographically defined area in which services, activities and programmes are paid for through a special assessment, which is charged to all business rates payers within the district.

The assessment money, which is collected by the local authority on behalf of the BID, is used to provide services, activities and programmes over and above those normally provided. These may be sourced externally or through the local authority. In order to ensure that services, activities and programmes, acquired using the monies collected, are truly additional, the legally constituted BID normally enters into a service level agreement for a minimum basic level of service with the local authority.

The decision to enter into a BID is made by means of a ballot and if voted for by a majority is legally binding upon all. This prevents the problem of freeriders benefiting from everyone else putting their hands in their pockets.

BIDs have been remarkably successful in North American cities in improving the prospects many downtowns. Altside Business Village is actively looking at the prospects for setting up BIDs in this area.

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For a factsheet in pdf format on the basics and benefits of BIDs click here