A BID is funded by those businesses within the BID area. Each eligible business contributes a percentage of its rateable value – around 1%. This fund is then ring-fenced – unlike business rates which are redistributed by central government – and an independent BID company is established to run the BID and implement the initiatives outlined in the BID Business Plan.
Additional funding can be raised through sponsorship and grants, whilst voluntary contributions can be made from businesses outside the BID area or below the levy threshold.
Most BIDs are governed by a board made up of BID levy payers representing the BID area.