Business improvement district meaning

National non-domestic rates (NNDR) This Practice Note sits within a broader series on NNDR. It sets out the legislative framework for billing and recovery, explains the collection fund, and outlines transitional reliefs and exemptions operating within the system, addressing periods both before and after the pandemic. For more on other facets of the NNDR scheme, see the following Practice Notes: National non-domestic rates—valuation and appeals National non-domestic rates—business improvement district, business rate supplements and retention Liability for business rates Currently, local authorities collectively keep half of business rates income. The remainder is paid to central government, which then uses it to fund grants for local authorities. For the 2023–24 financial year, authorities project non-domestic rating income of £25.1bn—representing what they expect to collect after allowing for all reliefs, accounting adjustments and amounts retained outside the rates retention scheme. They also estimate awarding £7bn in business rates relief during 2023–24...

This Practice Note forms part of a wider set addressing National Non-Domestic Rates (NNDR). It looks at business improvement districts (BIDs), outlining their purpose, what they are, and the processes for their creation and funding. It also considers business rates supplements and the retention of NNDR by local authorities. What are business improvement districts? Section 41 of the Local Government Act 2003 (LGA 2003) introduces the statutory framework for BIDs. Under it, a billing authority may impose an additional levy on ratepayers within a BID area to finance projects that deliver extra services or further enhancements for the benefit of the local community (defined broadly as ‘those who live, work or carry’ on any activity in the district). Two or more billing authorities can agree to establish BIDs that span their borders, known as joint arrangements. Bodies running BID schemes are classed as a ‘relevant body’ for the purposes of the Localism Act 2011. BID schemes that were in place during the coronavirus (COVID-19) pandemic could be extended;...