Business Improvement Districts in London Nabeel Khan GLA - - PowerPoint PPT Presentation

Business Improvement Districts in London

Nabeel Khan GLA Regeneration Team

• A brief history of the London LEP
• What is a Business Improvement District?
• How do they work?
• BIDs in London
• City Hall’s support
• Case studies
• Q&As

CONTENT

• The Diamond Jubilee of Queen Elizabeth II.
• Barack Obama is re-elected for his second term.
• London successfully hosts the Olympic Games,

where Team GB finishes third in the medal table with 29 gold medals, and 65 medals in total

• The London LEP is formally established by the

Mayor of London

BACK IN 2012…

• Austerity’ will last until 2019/20 at least
• Protection of the NHS, education and pensions budgets

means other provision will be cut deeper

• Local government can expect a further 20% cash cut by

the end of the decade

PRESSURE ON LA BUDGETS

Advisory role

Four key priorities are:

• Skills &

Employment

• Micro, small &

medium sized enterprises

• Digital creative,

science and technology

• Infrastructure

THE LONDON LEP

• 1. Stay open for

business

• Strengthen London’s voice
• n national Immigration

policies

• Strengthen London’s voice
• n the UK’s relationship

with Europe

• 2. Champion micro,

small and medium enterprises

• Strengthen London’s High

Streets and Places of Work

• Coordinate the business

support offer available to London’s SMES through the London Growth Hub

• Scale-up London’s SME

community through improving access to finance, international trade and leadership capacity

• 3. Train more

technical talent in the creative and tech sectors

• Develop a better

understanding of the talent gap

• Create a robust process for

monitoring London's performance on technical skills in the creative and tech sectors

• Build a set of short,

medium and long term interventions

• 4. Improve digital

connectivity

• Acceleratethe roll-out of

high-speed broadband or the take-up of ethernet

• Encourage the take-up of

superfast broadband where it is already in place

• Consider actions to support
• ther connectivity issues

(e.g. wi-fi, mobile data)

L O N D O N 2 0 3 6 : AN A G E N D A F O R J O B S & G R O W T H

• A business improvement district (BID) is a

defined area within which businesses are required to pay an additional tax (or levy) in order to fund projects within that defined boundary.

• The BID is often funded primarily through the levy

but can also draw on other public and private funding streams.

• BIDs were introduced in London in 2005, since

then their community has grown to the current number of 51

WHAT IS A BID?

BIDS IN LONDON

Total annual levy income

£24.9 m

61,000

Total number of firms in BID areas

905,250

People employed

in BID areas Total additional

income

£5.5

million 78

Partnerships with key stakeholders

13,300

Total number of

levy-payers Businesses on

BID boards

489 56

Local authority

representatives

• n BID boards

Total turnover in BID

areas

£356.5 million 156

Full-time empoyees

Additional services provided by BIDs

287 66

Property owners

• n BID boards

51 BIDs

“Since their creation BIDs have evolved from their traditional cleaning/safety and marketing activities to more sophisticated programmes like place shaping and regeneration of their areas, employment support projects, Corporate Social Responsibility, workspace provision, etc.”

THE EVOLUTION OF BIDS…

…THE EVOLUTION OF BIDS

N O S U C H T H I N G AS A T Y P I C AL B I D

F

Bi

g

.

c4

• m

:

e Levy income and additional income

Source: British BIDs.

£

• Established a London BIDs Steering Group in August 2013

to encourage the development of more BIDs across London and support existing BIDs.

• Allocated £660,000 of LEP funding to support the set-up of

17 new BIDs (to date) and deliver relevant projects for existing BIDs.

• Published a report on the evolution of London's Business

Improvement Districts (BIDs) which was launched in March 2016.

LEP SUPPORT FOR BIDS

• LB Southwark - Bermondsey
• LB Lambeth – Clapham
• LB Lambeth – Southbank
• City of London Corporation (Cheapside)
• Stratford Renaissance Partnership
• Heart of London Business Alliance
• LB Sutton - Beddington
• LB Croydon - Purley
• Camden Town Unlimited - Euston
• LB Bromley - Bromley
• Inmidtown - Farringdon
• Edgware Road Partnership - Edgware Road
• New West End Company - NWEC
• NW3 Hampstead
• West Norwood & Tulse Hill (WNTH)
• Hatton Garden
• Richmond BID

BIDS WE HAVE SUPPORTED

C A N B E D O W N L O A D E D F R O M : H T T P S : / / W W W . L O N D O N . G O V . U K / S I T E S / D E F A U L T / F I L E S / E V O L U T I O N _ O F _ L O N D O N S _ B I D S _ M A R C H 2 0 1 6 _ W E B _ 0 2 0 3 1 6 . P D F

THE EVOLUTION OF LONDON’S BUSINESS IMPROVEMENT DISTRICTS

Report March 2016

The Evolution of London’s BIDs

Established: 2010 (renewed in 2015) Businesses: 420 Staff: 5 Levy income: £1,516,970

Case Study 1: Love Wimbledon BID

Established: 2014 Businesses: 184 Staff: nil Levy income: £450,000

Case Study 2: South Bank BID

Nabeel Khan 020 7983 5573 Nabeel.khan@london.gov.uk

QUESTIONS?

Ruth Duston Primera Corporation Ltd

A Business Partnership for Old Street

Business Improvement Districts

• Changing Business Environment
• Innovative ways to deliver services
• Localism and Devolution
• Public sector cuts
• Positioning BIDs
• Opportunity to influence service delivery and area policy
• Development of sustainable and vibrant locations

National and Political Context

• Economic well being and economic growth
• Attracting inward investment
• Giving competitive regional advantage
• Producing social well being / improving quality of life
• Developing partnerships between the private and public

sectors

• Encouraging corporate social responsibility
• Providing sustainable investment for ongoing capital

projects/services

• Creating a positive sense of place and enhanced feeling of

safety and well-being - providing community pride

BIDs are at the heart of business-led partnerships

BIDs

London Context

Victoria BID footprint

Investment in Infrastructure

• Retain competitive edge
• Contracting public purse
• Neighbouring BIDs
• Leverage investment and growth
• Distinctive combination of Business Sectors
• Development pipeline and economic growth

Why Does Victoria Need a BID

• Residential: £1,300 per sq ft (2011), £1,600 per sq ft (2013), £2,000 per sq

ft (2016)

• Commercial: Victoria is now in the Top 10 areas in London for year on year

growth in commercial property – rental growth increased in Victoria last year by 12.5% YoY (Levy London Markets Analysis 2016)

• The Victoria market provided investors with a total return of 22.3% in the 12

months to the end of December 2015. This is above average for London

• Victoria is now ahead of Covent Garden, Soho, Midtown and Docklands in

terms of rental growth

Victoria’s Success

Cheapside BID Boundary

• The role of the modern BID is not just about improving areas, but increasingly

they are powerful business alliances focused on CSR, the socio-economic agenda, community engagement, matching skills and training to jobs, and

• pportunities such as procurement
• The Cheapside BID was proposed by the City of London to complement and

build upon the achievements of the Cheapside Area Strategy and the Cheapside Initiative

• The new BID aims to develop a marketing strategy to support the development
• f Cheapside as an office and retail destination.

Cheapside Business Alliance

Cheapside Business Alliance

The Northbank BID

The Northbank BID Safe and Secure Public Realm and Environment Marketed and Promoted Corporate Social Responsibility

Victoria Business Improvement District – What we have achieved