LEGAL SETUP

Ealing Council collects the BID levy on our behalf and acts as our auditors to ensure we are delivering the projects listed in the elected business plan. They also ensure we are abiding by the following Government legislation for England and Wales.

• Local Government Act 2003: The core legislation that enabled the creation of BIDs. It provides the legal framework for local authorities and businesses to form BIDs, fund them through a mandatory levy, and deliver additional services.
• The Business Improvement Districts (England) Regulations 2004: These statutory regulations detail the practical aspects of establishing and running BIDs in England. The regulation includes rules on:
• Proposals: Content of the BID proposal and business plan.
• Ballots: Procedures for running the ballot, who can vote, and the voting thresholds required for a BID to be approved.
• Levy: How the BID levy is calculated, administered, and collected.
• Governance: The management arrangements for the BID body.

The Key legislative requirements for BIDs. All BIDs, regardless of their UK nation, must adhere to these rules set out in the legislation:

• Mandatory ballot: A BID can only be created after a ballot of businesses in the proposed area is approved.
• Double-lock majority: For the ballot to pass, two conditions must be met:
• A majority of businesses that vote must vote “yes.”
• The “yes” votes must represent more than 50% of the total rateable value of all votes cast.
• Mandatory levy: If the ballot is successful, payment of the BID levy is mandatory for all eligible businesses in the district for the five-year term, regardless of how they voted.
• Additional services: BID funds must be spent on services that are supplementary to those already provided by the local authority. These extra services are outlined in the BID’s business plan.
• Five-year term: A BID operates for a maximum of five years. It must hold a new ballot to be renewed