It’s a YES – Stourbridge businesses celebrate positive BID result
Friday 1st November 2024
Businesses across Stourbridge town centre have voted in favour of plans for a Stourbridge Business Improvement District (BID), securing around £835,000 to be spent on supporting businesses and improving the town centre.
This positive result follows many months of planning, in-depth interviews, surveys and a month-long ballot in which businesses in the town centre were asked to vote on the proposals.
77% of votes cast voted in favour of the BID Ballot by total number of businesses, and 77% of votes cast voted in favour of the BID by Rateable Value.
As a result of the yes vote, the Stourbridge BID will commence on the 1st April 2025 creating a collective fund of more than £835,000 to spend over the next five years.
The plans were spearheaded and driven by the Stourbridge BID Steering Group of business representatives from across the town centre, supported by pfbb UK, who develop and deliver Business Improvement Districts across the country.
Speaking about the ‘Yes’ vote, Chair of the Stourbridge BID Steering Group and Ryemarket Shopping Centre Manager Aaron Powell, said: “This is superb news for Stourbridge and huge congratulations must go to all the businesses which rallied and joined forces to ensure we secured a yes vote in the BID ballot. Thanks must go to all those businesses who engaged in the process by sharing their ideas and opinions on how we can work together to improve the town centre and who, ultimately, voted in favour of the plans that support each other in these challenging and uncertain times.”
“The BID’s business plan, which businesses were being asked to vote on, has been designed to address the issues which came up during the lengthy consultations with many of the businesses in the town centre, from the small independent businesses to large national businesses.”
“The money will now be spent through the three key strategic objectives and their related activities.”
The Stourbridge vision is ‘‘To promote Stourbridge and develop its reputation as an attractive, vibrant, historical, market town’.
The BID will:
- Create a vibrant town centre which has a strong sense of identity and a positive awareness locally, regionally and nationally.
- Work with organisations and businesses in public, private and voluntary sectors to create a place which looks and feels great for families, the local community, businesses and visitors to our town centre.
- Strive to achieve the best for businesses and organisations in Stourbridge town centre, encouraging everyone to work together to create a positive working environment, a great place to develop a business and a strong business community.
Stourbridge BID has a business-driven focus to ensure essential improvements to the town centre, a means to ensure that the businesses not only survive but prosper in these uncertain times.
A company will now be formed to deliver the objectives of the BID over the next five years.
Your questions answered...
A BID is a Business Improvement District.
BIDs are part of the Government’s long-term strategy to encourage partnership working between a local authority and the business community. A BID is a defined area within which rate-paying businesses decide on new improvements to help transform their area – and then vote to agree the investment. This money is then ring-fenced to provide the improvements agreed through the BID strategy. BIDs see improvements to business profitability and turnover which would not have happened otherwise.
Essentially a BID is designed to be for the businesses, controlled by the businesses.
Stourbridge should be a place to be celebrated in which the local population takes pride and which is recognised regionally and nationally as a town with a great sense of its own identity and a great place to do business. Bill Grimsey, in his last review (Oct 2018) stated that a healthy town in the future will be a gathering point for the whole community and a great experience facilitated by technology. He states that a healthy town centre will incorporate: health, entertainment, education, leisure, business/office space and shops at the heart of a thriving community hub. This has become even more evident since COVID. Councils are no longer in the situation of being able to deliver and ‘do’ everything they used to do. This provides a clear opportunity for all key stakeholders to be involved and to play a part in shaping the future of economic growth of their town and businesses, organisations and public bodies in partnership.
A BID provides an ideal mechanism for businesses to have a structured approach to these relationships and if the BID plan has taken account of other over-arching strategies and plans, then this enables the businesses to achieve their own objectives as well as providing an important means of other stakeholders to work with them. There are some great opportunities in Stourbridge and a very strong business community which, working together, could help drive Stourbridge forward as a vibrant and attractive place to live, work and play.
A new private limited company, which is limited by guarantee and has its own management board, would be responsible for administering the BID. This is a not-for-profit company; board members would be made up of volunteer individuals who represent the cross section of businesses and organisations across the area. BID boards normally appoint a project manager and support staff to implement the projects identified in the plan. These can be employed directly by the BID or via a specialist project management company which will also then offer strategic support.
The BID will deliver the changes and improvements that you and the other businesses in the area identify; these might include targeted street clean-ups, improved signage, promotions and events to increase the profile of the area, all of which will help to drive customer visits and encourage longer stays. It is important to remember that the BID will not replace the existing services provided by the local authority. This will be monitored by the BID company to ensure that the money generated through the BID is only used for the improvements voted for by the businesses in the BID area.
Businesses from across Stourbridge town centre have come together to create a representative body of people to develop this project. Called ‘Stourbridge BID Steering Group’, it represents businesses from all business sectors, sizes and types and it has appointed BID specialists, Partnerships for Better Business Ltd (pfbb UK), to support the businesses in developing a BID for the town centre. It is essential that the businesses in the area determine the activities and objectives of the BID Business Plan. The first stage of this work, a Feasibility Stage, was completed in May 2023 and made recommendations that businesses were interested enough in the concept of the BID to move to the Development Stage.
In this stage there will be a series of business interviews, workshops, surveys and other research carried out to determine what improvements businesses in Stourbridge would like to make. Using all the input from the businesses across the area, pfbb UK will support the Stourbridge BID steering Group in developing a BID Proposal and Business Plan and take them and the Local Authority through the legal requirements to create the framework for the BID. Improvements are made if the majority of ratepayers who vote in a ballot in a designated area approve them through a vote. This enables businesses to have a direct say in deciding what improvements should be made in their area. After five years, the businesses will vote again on whether they want the BID to continue and what they want to improve over the next five years.
The development of the BID is being funded by Government funding secured by Dudley Borough Council. If the vote is successful, the BID itself is funded by occupiers of business rated properties in the BID area and aims to be both fair and transparent. If the majority of businesses vote for the BID, all businesses and organisations in business rated properties in the BID area which meet the levy criteria will be subject to an additional levy to their rates. This overcomes the problem of a few businesses paying for improvements that benefit many. It is also hoped that the BID will serve as a catalyst for change and bring in more investment to the area.
You and the other businesses will identify the issues that will be tackled by the BID in the area.
You can also be certain that the BID will:
- Deliver a pragmatic and business driven agenda
- Be business led
- Benefit from effective partnership with the public sector and other key stakeholders
- Deliver sustained investment to improve the area over a five-year period
- Focus on achieving positive and measurable outcomes of benefit to all businesses
A levy is charged to occupiers of business rated properties. This levy is based on the rateable value of your premises. On average this levy is usually set at between 1% and 2% of the rateable value. A 2% levy in a BID in Stourbridge could possibly generate around £132,000 per annum which will be ring-fenced to make and manage the improvements that businesses have voted for. A BID can decide on the structure and criteria of its levies and may wish to consider a flat rate, a tiered charging system or capped rates. This will be outlined in the business plan. This levy fund can also be used to leverage in funding from other sources such as grant funding against specific proposed projects.
You will – once the BID strategy has been drawn up, you will be asked to vote on whether you would like it to go ahead. For the BID to proceed, those who vote in favour must represent a majority of the vote by number of votes and aggregate rateable value.
