Question to the Department for Levelling Up, Housing & Communities:

To ask the Secretary of State for Housing, Communities and Local Government, what (a) guidelines and (b) processes are in place to ensure that local authorities in Business Improvement Districts carry out a periodic audit or value for money review into the (i) scope of work undertaken by BID management companies and (ii) their overall cost effectiveness.

Business Improvement Districts (BIDs) are a proven and effective vehicle for leveraging private investment and have a significant role to play in high street regeneration.

In 2019, 259 BIDs across England raised over £106.7 million through levy payments to invest back into their respective towns and cities. Their role will be even more important in the recovery phase from the current crisis.

BIDs are vehicles for businesses to effect collective local action to manage and improve the high streets and town centres where they exist and trade. They are created under a democratic process which requires their mandate to be renewed every five years. They are also subject to the usual rules under the Companies Acts, such as standard accounting practices and audit and disclosure requirements, that apply to the corporate structure that they chose to adopt, such as companies limited by guarantee or limited liability partnerships. BIDs are also subject to The Business Improvement Districts (England) Regulations 2004.

Although many BIDs work closely and effectively with the local authorities in their area, they are independent of both local and central government. The work that they do must be approved in a ballot by their member organisations and the levy that they charge is similarly approved through the ballot process. If BID members are dissatisfied with the work that their BID is doing, or if there is any irregularity in the way the BID operates, the usual statutory remedies apply. BID members can also decline to vote for its continuation when a renewal ballot is held.