The BID levy and governance
Proposal Document
Governance
The London Riverside (BID) Ltd is a business–led, not-for-profit company limited by guarantee. It provides the opportunity for local businesses to invest and have a direct say in the management of the area. This investment is controlled by those businesses through the BID Company, formed for this purpose, run by and for local businesses.
The BID Company’s members include:
- All businesses paying the BID levy;
- Voluntary contributors to the BID, including property owners.
The BID Board meets at least four times a year with members drawn from across the area. Board members’ names and the companies they represent are shown on the BID’s website, alongside the names of BID team members. BID levy payers can request copies of Board minutes.
There is a continual two-way exchange with BID levy payers, our stakeholders and the wider community. We communicate with levy payers through regular newsletters, regular one to one contact, on individual projects and issues via casework and via surveys and consultations. New businesses entering the BID and becoming liable for the BID levy are welcomed as soon as notification is received from the local authority.
BID Levy
The BID levy is fixed for the 5-year term at 1.25% of rateable value and collected by Havering Council every April.
The following rules apply:
- No increase in the BID levy can occur within the 5-year term, other than an increase on the 1st April to allow for inflation, capped at 3% and at the discretion of the Board. The London Riverside BID has never implemented an inflation-related increase.
- The BID levy is applied to all ratepayers with a rateable value of £5,000 or more and capped at £12,000 per annum.
- All new hereditaments entering the ratings list after 1st April of each year shall have the BID levy applied pro-rata as per the BID levy rules.
- The owners of empty properties will be liable for the BID levy with no void period. Where a property has been vacant for more than 6 months, the BID levy charge will no longer apply and any refund due can be sought from the BID Company at the end of the relevant financial year.
- There will be no VAT charged on the BID levy.
- The BID catchment area is fixed for the duration of the 5-year term, but can be extended or reduced by the Board for a new term.
Financial Protocols
The BID’s financial protocols are grounded in good governance and probity. The BID retains professional accountancy and book-keeping services.
An annual budget setting process takes place for each year of the BID’s five-year term, which has its basis in the Proposal Plan on which businesses voted. Changes to expenditure plans, for example in the event of changes in local conditions, are approved by the Board. Additional income and voluntary contributions over and above BID levy income are clearly identified in the BID’s budget. An annual budget is set by the Board against anticipated BID levy revenues.
Procedures are in place for robust day to day financial management, with all expenditure tracked regularly by the BID Manager. Payment systems require two levels of authorisation to prevent fraud.
Procurement processes are in place for the appointment of suppliers, proportionate to the value, underpinned by contracts. This ensures best value for BID levy payers. Contracts are competitively tendered against a detailed specification, and suppliers only appointed if they meet contractual standards.
Compliance
London Riverside BID’s operational standards are governed by industry standards laid down by British BIDs and The BID Foundation.
An Operating Agreement is in place between the BID and Havering Council detailing the contractual relationship in respect of levy collection and BID management. Regular meetings are held between the BID and the Council to review the fulfilment of the Operating Agreement.
Cover is in place for employer, directors and public liability insurance, professional indemnity, cyber and contents insurance.
The BID is registered with the Information Commissioner as a data processor and our privacy policy is kept up to date on our website.
The BID is VAT registered and exempt from Corporation Tax, ensuring that BID levy income can be carried forward from year to year to build up project funds for local investment.
There is a clear distinction between the role of the Board and operational staff in relation to overseeing vision and delivery, with systems for handling and recording conflicts of interest.