How are Business Improvement Districts working in the East of England?
- Eastern Powerhouse
- May 23
- 3 min read
There are 28 Business Improvement Districts (BIDs) across 6 counties in the East of England representing nearly 12,000 businesses and investing £10m into the regional economy via levy payments.
Origins and Purpose
Business Improvement Districts (BIDs) are geographically defined areas where ratepayers vote to pay a small additional levy, typically 1–2% of business rates, funding projects that go beyond statutory services. Their core aims include boosting footfall, improving cleanliness and safety, marketing the area, and delivering events and capital improvements tailored to local business needs.
Business Improvement Districts (BIDs) trace their roots to Toronto in the 1970s, where local businesses pooled resources to enhance public spaces and reduce crime. The UK formally adopted the model through the Local Government Act 2003, with its first pilot BID—Leeds City Centre—established in 2005.
BIDs in the East of England
Since the mid-2000s, BIDs have spread rapidly across the East of England. There are currently 28 BIDs across 6 counties in the East of England: including town, city, coastal and industrial destinations. Notable examples include:
Cambridge BID (est. 2016): Focuses on business networking, public realm enhancements (street furniture, planters), and public-art projects to reinforce the city’s innovative brand.
Ipswich Central BID (est. 2019): Prioritises town-centre events, digital marketing, and night-time economy safety measures, supported by a levy on retail and hospitality businesses.
Norwich BID (est. 2019): Funds extra street-cleaning, graffiti removal, and an Ambassadors team to assist visitors and deter anti-social behaviour.
Evidence of Success
Independent evaluations of UK BIDs (Local Government Association, 2015) have found:
Increased Footfall: On average, well-run BIDs report footfall growth of 5–10% above comparable areas, attributed to events, improved street maintenance, and coordinated marketing.
Crime Reduction: Many BIDs deploy private-sector patrols and CCTV enhancements, achieving crime reductions of 10–15% in their first three years.
Business Confidence: Surveys routinely show 70–80% of levy-payers feel their BID offers good value, citing better communication channels and more responsive local services.
In Cambridge, footfall in the BID area has risen by over 8% since 2016, and 65% of members report increased sales during BID-funded event weeks. Ipswich Central recorded a 12% drop in shoplifting and anti-social behaviour incidents within two years of its launch.
Criticisms and Challenges
Despite these successes, BIDs face several critiques:
Democratic Legitimacy: Opponents argue that a simple majority voting system and the automatic levy for all ratepayers can sideline minority views, particularly from small or independent businesses.
Levy Burden: In periods of economic stress, even a modest extra charge can strain cash-flow, leading some businesses to question the return on investment.
Scope Limitations: BIDs cannot replace essential public services; where local authorities cut back, BID-funded enhancements may create uneven service levels across a town or city.
Short-Term Focus: Five-year BID terms encourage quick-win projects (events, decoration) but may under-invest in longer-term infrastructure or strategic planning.
Displacement: Levy contributions can force some smaller businesses to leave BIDs and street vendors can often be barred from trading in these areas, impacting the vibrancy and diversity of the retail offer in high streets.
The Future of BIDs
In the East of England, BIDs have become a vital tool for towns and cities seeking to enhance their competitiveness and vibrancy. By pooling resources, businesses can deliver targeted improvements that they need, and which are not always possible through statutory channels alone. However, to ensure their legitimacy and long-term impact, BID Partnerships must maintain transparent governance, demonstrate clear value for levy-payers, and collaborate closely with local authorities to align short-term initiatives with broader place-making strategies.
Moving forward there is an opportunity for some BIDs to play a greater role in stimulating innovation and productivity by taking on more features of ‘Innovation Districts’. This will be dependent on the type of businesses located within the district. In essence, BIDs focus on improving the existing environment for businesses, while innovation districts aim to create an environment conducive to innovation and growth, often requiring more complex infrastructure and partnerships, helping to form clusters of innovation and knowledge intensive activity, focused on connectivity and collaboration. Both can work together to create a more vibrant and prosperous environment.
If your business is part of a BID, we would like to hear your views on what works and what what can be improved, and explore ways to support you.
Get in touch with mike@easternpowerhouse.uk
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