1
Cabinet Member Report
Date:
Subject:
30 September 2011
Business Improvement District BID proposals for
Heart of London and Piccadilly and St James’s
1. Summary
On 14 September 2011, the City Council received two Business Improvement
District proposals and requests for the Council to hold a ballot of local businesses
to enable the businesses to vote on the proposals.
The first proposal is from the existing Heart of London BID which is currently in its
second term that expires in March 2012. Its BID Renewal Proposal increases its
area by including properties south of the current area. It builds upon the success
of the current BID. Its main aims are to strengthen its business voice, work with
the City Council to better manage the streets, promote the area, reduce business
costs and communicate with businesses.
The second proposal is also from Heart of London but is on behalf of businesses
in Piccadilly and St James proposing a BID for Piccadilly from Piccadilly Circus to
Green Park that covers properties that front onto Piccadilly and also Jermyn
Street and Regent Street. Its main aims are to have a collective business voice,
promote the area (particularly during 2012), reduce business costs, work with the
City Council to better manage the streets and communicate with businesses.
This report sets out the process described in the Business Improvement Districts
(England) Regulations 2004 which both the prospective BIDs and the City
Council have to follow for them to become formally established. It then
describes their BID proposals which have been developed closely with service
departments and reflect the good working relationship that has been established
between the BID proposers and the City Council.
The City Council is not required to formally agree any BID proposal, rather it can
only veto BID proposals if they are contrary to formally adopted and published
Council policy.
These two BID proposals are generally in line with Council policies and priorities
and so this report recommends that the Council formally endorses them. The
Cabinet Member for Enterprise and Volunteering, who is responsible for BIDs,
has declared an interest in this report. As such the Leader of the Council is asked
to agree the recommendations in the report, but as improving the management of
the public realm is a key priority in both BID proposals, the Cabinet Member for
City Management is asked to confirm that he also supports the BID proposals.
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2.
Recommendations
2.1 That the Leader of the Council and City Management endorse the Heart of
London BID Renewal Proposal formally submitted by the Heart of London
Business Alliance on 14 September 2011 and confirm that the proposals do not
conflict with formally adopted and published City Council policy.
2.2
That the Leader of the Council and the Cabinet Member for City Management
endorse the BID proposal for Piccadilly and St James’s Area formally submitted
by the Heart of London Business Alliance on 14 September 2011 and confirm
that the proposals do not conflict with formally adopted and published City
Council policy.
2.3 That the Leader of the Council request the Chief Executive as Returning Officer
and “Ballot Holder” hold a renewal ballot for the Heart of London and Piccadilly
and St James’s BID proposals.
2.4
That the Head of Legal and Democratic Services be authorised to complete the
necessary legal agreements required for the operation of the BID Levy, Ballot
and service arrangements and any other necessary matters for both proposed
BIDs in consultation with the appropriate officers.
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Cabinet Member Report
1 of Westminster
City
Cabinet Member:
Date:
Leader of the Council
Cabinet Member for City Management
30 September 2011
General Release
Classification:
Title of Report:
Business Improvement District BID proposals for
Heart of London and Piccadilly and St James’s
Strategic Director Built Environment
Report of:
St James’s and West End
Wards involved:
Policy context:
Financial summary:
Report Author:
Contact Details:
Building a Living City commits the City Council to
supporting the development of Business
Improvement Districts in Westminster.
The cost of carrying out the ballots is about £5,000
and can be met from existing budgets. There are no
other financial implications arising from this report.
Mike Fairmaner
Economic Policy and Area Programmes Manager
City Planning Delivery Unit
Tel:
Email:
020 7641 3172
mfairmaner@westminster.gov.uk
2
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3.
Reasons for Decision
3.1
This report describes the two BID proposals that have been submitted for the
Heart of London and Piccadilly and St James’s. These complement the services
already delivered by the City Council and will bring extra resources and
investment into their respective areas. This will lead to better management of the
public realm within the areas and should make them better able to compete with
other town centres in the current economic conditions. They will also provide a
representative voice for businesses that should prove useful for both the City
Council and the Police. Neither of the proposals conflict with City Council
policies. The Leader of the Council and Cabinet Member for City Management
are asked to endorse both BID proposals and other recommendations contained
in this report.
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Background
4.1
The Heart of London BID was the first BID to be established in Westminster in
February 2005. Since then, four other BIDs have been established and the three
first generation BIDs comprising Heart of London, New West End Company and
Paddington BIDs have all secured a second term. The Heart of London Business
Alliance has now submitted a BID proposal for its third term as it currently expires
in March 2012. Third term BID renewal proposals are expected from the New
West End Company and Paddington next year.
4.2
The Heart of London Business Alliance has also submitted a BID proposal for the
Piccadilly and St James’s areas on behalf of business in this area. This will see
businesses in this area become a BID for the first time, assuming a successful
vote. Because of the shared boundary with Heart of London, some businesses
common to both areas and likely efficiency savings, these businesses have
joined forces with the Heart of London BID to pursue joint operations across both
BID areas and propose to have a joint strategic board to oversee their services.
4.3
Two BID proposals for these respective areas have been formally submitted and
the City Council is statutorily bound to consider them and hold a ballot of their
businesses on their behalf. Both prospective BIDs are for five years which is the
maximum period allowed before requiring another ballot. BIDs can continue for
an unlimited number of terms, providing they are successful in their ballots.
4.4
The process by which a prospective BID seeks to become formally established is
set out below:


Formal notification to the local authority and Secretary of State
Request to local authority to hold ballot, which must be accompanied by:

A copy of the BID renewal proposals

A summary of the consultation it has undertaken with those liable for
the BID levy

The proposed business plan with estimates of cashflow, revenue and
expenditure, the predicted budget and the contingency margin
included in the budget
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


The financial management arrangements for the BID body and the
arrangements for periodically providing information to the City
Council on the finances of the BID
Information to satisfy the City Council that it has sufficient funds to
meet the costs of the ballot
The City Council must consider whether the renewal proposals conflict
with any formally adopted and published policy by the City Council.
4.5
If there is no conflict and the City Council is satisfied that the information provided
by the BID body meets the requirements, the City Council must instruct the ballot
holder to hold the ballot. The ballot holder for the City Council is the Chief
Executive in his capacity as Electoral Registration Officer/Returning Officer
4.6
The ballots for both prospective BIDs are due to take place in early 2012. If the
majority of voters in the ballot support the renewal proposals, and of those voting
there is also a majority by rateable value, then the BIDs will formally start on 1
April 2012.
5.
Heart of London BID Proposal
5.1
The Heart of London Business Alliance formally submitted its BID renewal
proposals on 14 September 2011. Its proposed area is shown in appendix 1
which includes properties to the south and west not currently part of the Heart of
London BID. This section of the report summarises their proposals and
concludes that they accord with much of the City Council’s proposals for the area
and the city generally and that the BID should be positively supported.
The BID levy
The renewal BID proposal sets a 1% levy on all businesses in the area.
Business with a rateable value as at 1 April 2011 under £100,000 will not pay the
levy and will therefore not get a vote. The levy will be subject to a 3% increase
each year to allow for inflation and in the first year will generate nearly £780,000.
The BID will last for five years.
5.2
5.3
Voluntary contributions are expected to add over £100,000 annually to the BID
levy and over the five years of the renewed BID, giving a total annual budget of
about £1million for each year of the BID.
5.4
The Council has no properties within the area for which it will be liable for the BID
levy.
The BID’s Priorities
The BID’s initial focus is on the unveiling of the new Leicester Square and
maximising the value of the Queen’s Diamond Jubilee and 2012 Olympics to its
businesses. Its BID Proposal sets out five priorities for its third BID term:
5.5

Influencing the Agenda on a wide range of business issues to assert its impact
and influence and strengthen its business voice.
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
Managing the Streets by creating a dedicated new business neighbourhood
management team to provide a seamless street management service which
responds to issues raised by local businesses. This will work with the Council’s
own staff and contractors to improve the quality of the public realm and tackle
issues such as crime and anti social behaviour, ticket and taxi touting, illegal
street trading and street cleansing. The proposal sets out objectives to reduce
crime and anti social behaviour in the area and to improve the feeling of
confidence and safety in the public realm and this is to be welcomed.
The new management team is to be welcomed and will comprise both Heart of
London Business Alliance and City Council staff working together to tackle
entrenched street management problems affecting businesses in the Heart of
London. This team will be comprised of additional council staff dedicated to this
area working alongside existing resources.
The proposal states that the BID will work with the City Council to look at a new
licensing scheme for buskers and other street performers so that illegal, low
quality performers can be enforced against and removed in favour of a wider
range of more interesting entertainers.
This is to be welcomed, although in effect it is likely to be a new procedure rather
than a new licensing scheme to open up the use of the Council’s own premises
licensing arrangements for appropriate regulated entertainment.
The BID has commissioned a Public Realm Vision and Plan for their area to look
at the opportunities for further public realm improvements and states that the BID
will also work with the Council to reduce street clutter in the area and deliver their
part of the Leicester Square management plan for the new square once this has
been agreed with the City Council. Again, this is to be welcomed.

Positioning and Promoting to support businesses encourage investment and
tourism to increase footfall, dwell time and expenditure. The BID has developed
a three pronged marketing strategy that will promote the BID area as a vibrant
part of the West End through working with the West End Marketing Alliance and
the Mayor’s promotional agency London and Partners, promote its iconic
locations such as Leicester Square (particularly in connection with film
premieres), Piccadilly Circus and Shaftesbury Avenue and promote the range of
businesses in the area. As part of this, the BID will develop a calendar of events
for the new Leicester Square to generate footfall and increase dwell time and will
look to host a major interactive attraction every Christmas.

Connecting with Business to provide a two way communication of intelligence
between the BID organisation and its businesses to be able to resolve issues and
engage with its members. This includes the Heart of London Crime Reduction
Partnership with the Police and the City Council and also by employing
Ambassadors to liaise with businesses and also to report issues and problems to
the Council, Police and other agencies.

Driving down costs for its businesses by specialist procurement and schemes
such as Smart Green business and corporate social responsibility schemes. The
Proposal will continue the current recycling scheme and will introduce a new
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Zero–2-Landfill scheme to increase recycling opportunities and reduce the
amount of waste and associated traffic involved in taking waste to landfill sites.
5.6
5.7
5.8
All of these proposals align with the Council’s own priorities and policies and can
be supported and so the Cabinet Members are asked to endorse the BID
proposal.
Ballot Timetable
The ballot period lasts for four weeks and is due to start on 24 January and finish
on 23 February 2012. The ballot will be managed by the City Council.
Governance Arrangements
The BID will be overseen by the Heart of London Business Alliance Board of
Directors that comprises BID levy payers, land owners and the Chief Executive of
the Heart of London Business Alliance. Also on the Board is a St James’s Ward
Councillor (Cllr Hyams who is a Director) and an observer from the local residents
Association. The Strategic Director Built Environment also has a place on the
Board as an observer and nominates an appropriate officer of the City Council to
represent her at Board meetings.
6.
Piccadilly and St James’s BID Proposal
6.1
The Heart of London Business Alliance, on behalf businesses in Piccadilly and St
James’s has formally submitted a new BID proposal for the area on 14
September 2011. Its proposed area is shown in appendix 2 and essentially
includes business that front onto Piccadilly, Jermyn Street and Regent Street.
This section of the report summarises their proposals and concludes that they
accord with the City Council’s proposals for the area and the city generally and
that the BID should be positively supported.
6.2
The BID levy
The BID proposal sets a 1% levy on all businesses in the area. Businesses with
a rateable value under £150,000 on 1 April 2011 will not pay the levy and will
therefore not get a vote. The levy will be subject to a 3% increase each year to
allow for inflation and in the first year will generate about £760,000. The BID will
last for five years.
6.3
Voluntary contributions are expected to add about another £100,000 to the BID
levy every year over the five years of the BID. The annual income generated is
expected to be nearly £1 million over the five years of the BID.
6.4
The Council has no properties within the area for which it will be liable for the BID
levy.
6.5
BID Services
The BID’s initial focus is holding a Royal Street Party to celebrate the Queen’s
Diamond Jubilee and to host events and ensure the businesses in the area
remain able to operate during the Olympics. The current scheme to make
Piccadilly two way for traffic will be completed in 2012 and this should provide a
much better pedestrian environment. The timing of this BID proposal therefore
fits in very well and will help continue in the transformation of Piccadilly to
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become a more integrated part of the West End. It will share boundaries with
both the Heart of London BID at Piccadilly and Haymarket and also with the New
West End Company at Old Bond Street and Piccadilly/Regent Street. The
BID Proposal sets out has five priorities for its BID term:

Influencing the Agenda on a wide range of business issues to meet the
collective ambitions of businesses in the area. Businesses in the area are
obviously concerned about the impact of the Olympics on their businesses.
Some, especially Fortnum and Mason’s have suffered from protests and
demonstrations and the proposed BID will provide for better and more immediate
communication between businesses when incidents occur.

Positioning and Promoting to raise the profile of the area and enhance its
reputation as a commercial and shopping destination and business location. The
BID will develop a strategy for destination marketing to put the area on the
international and national stage as a destination at the heart of the West End.
This will be through the West End Marketing Alliance and by working with London
and Partners but also at a more local level by working with the Jermyn Street and
Regent Street Associations. The BID will look to host major events during the
course of 2012 and beyond and these will include Christmas lights in the area.

Driving down costs for its businesses by specialist procurement and schemes
such as waste collection and recycling and corporate social responsibility
schemes. The BID will benefit from being able to take advantage of existing and
proposed schemes in the Heart of London BID, including waste recycling and
also savings arising out of joint procurement opportunities.

Managing the Streets by creating a dedicated new business neighbourhood
management team to provide a seamless street management service which
responds to issues raised by local businesses. This will work with the Council’s
own staff and contractors to improve the quality of the public realm and tackle
issues such as crime and anti social behaviour, rough sleeping and contingency
planning for major incidents. This will include employing Ambassadors to liaise
with businesses and report problems and issue to the City Council and other
agencies. The BID may also provide additional cleansing services.
The new management team is to be welcomed and will comprise both BID staff
and City Council staff working together to tackle entrenched street management
problems affecting businesses in the Heart of London. This team will be
comprised of additional council staff dedicated to this area working alongside
existing resources.

Connecting with Business to provide a two way communication of intelligence
between the BID organisation and its businesses to be able to resolve issues and
engage with its members, particularly in relation to the Olympics and planned
demonstrations.
6.6
All of these align with the Council’s own priorities and policies and can be
supported and so the Cabinet Members are asked to endorse the BID proposal.
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6.7
6.8
Ballot Timetable
The ballot period lasts for four weeks and is due to start on 24 January and finish
on 23 February 2012. The ballot will be managed by the City Council.
Governance Arrangements
The BID will be overseen by a new Heart of London Business Alliance Board of
Directors that will comprise BID levy payers and land owners from both areas and
the Chief Executive of the Heart of London Business Alliance. It will have equal
representation of businesses from both BID areas. Also on the Board will be a St
James’s Ward Councillor (Cllr Hyams who is also a Director) and an observer
from the local (Leicester Square) residents association. The Strategic Director
Built Environment also has a place on the Board as an observer and nominates
an appropriate officer of the City Council to represent her at Board meetings.
6.9
The BID will work with existing Street Associations, particularly the Jermyn Street
and Regent Street Associations, as the BID will include businesses that are
currently members of these two associations. Business will not be liable to pay
both a BID levy and a Street Association membership, and BID levies will be
ringfenced for use by the Associations in lieu of lost membership fees. The
Associations will be involved in the business management structure set up to run
the BID.
7.
Financial implications
7.1
The services provided by the BIDs will be integrated with services provided by the
City Council. Other than staff time spent on negotiating the precise details of
their provision, the services will not cause additional cost to the City Council.
7.2
The cost of holding the ballot for the BID is estimated at up to £10 per vote,
totalling about £5,000, and this can be met from existing budgets. The Business
and Improvement Districts (England) Regulations 2004 require the City Council to
pay for the ballot, which is only recoverable in the event of a very low turnout of
votes supporting the renewal BID proposal.
7.3
The City Council will be responsible for collecting the BID levy through the
existing business rates system into a ring fenced BID fund before passing over to
each BID. The City Council’s contractor, Capita, will collect the levy and pass it
onto the BID, for which each BID will pay an annual fee to Capita.
7.4
There are no Council occupied properties within the BID areas that will be liable
for the levy.
8.
Legal implications
8.1
Legal agreements between the City Council and the two BIDs will need to be
drawn up to cover:


the BID levy collection, and
the service specification for cleansing and highways services which the City
Council will continue to deliver throughout the BID period, subject to periodic
review and consultation with the BID.
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8.2
The Heart of London BID proposal contains the necessary information as set out
in the regulations (see paragraph 4.4 of this report) and as these proposals are
not considered to conflict with City Council policies, then the City Council is
obliged to hold a ballot to enable the affected businesses to vote on the BID
proposals.
8.3
The Piccadilly and St James’s BID proposal contains the necessary information
as set out in the regulations (see paragraph 4.4 of this report) and as these
proposals are not considered to conflict with City Council policies, then the City
Council is obliged to hold a ballot to enable the affected businesses to vote on
the BID proposals.
9.
Ward Member Consultation
9.1
Ward Member consultation has been carried out on the BID proposals and the
following comments have been received.
9.2
Councillor Glanz welcomes the positive contribution that the Heart of London BID
has made to date and the proposed BID for Piccadilly. He asks whether the
inclusion of the Burlington Arcade is something which has been discussed and
agreed with the New West End Company.
9.3
Officers’ response: This has been discussed with the NWEC BID even though
the Burlington Arcade has never been part of the NWEC BID. The boundary of
the BID on the north side of Piccadilly has been drawn with reference to the
boundary of the NWEC BID.
9.4
Councillor Mitchell also welcomes the renewal of the HOL BID and the proposed
BID for Piccadilly. He emphasises the need for them to engage with local
residents in and adjacent to the BID area.
9.5
Officers’ response: The Heart of London Board already includes a resident
representative from their area. Officers have asked if the new proposed Board
that will be formed to oversee both BIDs also includes a resident representative
from the Piccadilly and St James’s BID area and have been informed that when
the new Board is established the Board will take decisions on who attends as
observers.
If you have any queries about this report or wish to inspect any of the background
papers, please contact: Mike Fairmaner
Background Papers
BID Regulations 2004
HOL BID Proposal and letter dated 14 September 2011
Piccadilly and St James BID Proposal and letter dated 14 September 2011
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