National non-domestic rates—business improvement district, business rate supplements and retention
Produced in partnership with Alan Murdie of Council Tax Legal Services
Last updated on 27/07/2020

The following Local Government practice note produced in partnership with Alan Murdie of Council Tax Legal Services provides comprehensive and up to date legal information covering:

  • National non-domestic rates—business improvement district, business rate supplements and retention
  • Business improvement districts
  • Business rate supplements
  • Business rates retention

National non-domestic rates—business improvement district, business rate supplements and retention

Coronavirus (COVID-19): This Practice Note contains guidance on subjects impacted by the Coronavirus Act 2020 (CA 2020). CA 2020, s 79 extends BID arrangements in place which are due to expire on or before 31 December 2020 until 31 March 2021 unless the ballots required by sections 49(1) or 54(2) of the Local Government Act 2003 have already taken place. For further information, see tracker: Coronavirus (COVID-19)—governance tracker. See also the Coronavirus (COVID-19) toolkit, which provides easy access to news, practical guidance and Q&As from across a number of Practice Areas (subject to subscription). This Practice Note sets out the requirements for BIDs prior to the pandemic.

Business improvement districts

Section 41 of the Local Government Act 2003 (LGA 2003), provides for the introduction of business improvement districts (BIDs). This allows a billing authority to place an additional levy on ratepayers in the BID area to fund projects providing additional services or improvements for the benefit to the local community (defined broadly as ‘those who live, work or carry’ on any activity in the district. Two or more billing authorities may agree to establish BIDs (known as joint arrangements) in respect of a BID which spans authority boundaries.

The intention of the system is to encourage local authorities to use local policy—such as housing, planning and economic development policies—to grow their

Related documents:
Key definition:
Business improvement district definition
What does Business improvement district mean?

A partnership between a local authority and the local business community to develop projects and services that will benefit the trading environment within the boundary of a clearly defined commercial area, paid for through an additional charge on their business rates.

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