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bidding for our future

Business Improvement Districts are partnerships which have been set up across the country between local authorities and the local business community to develop projects to improve the environment and trading conditions in a defined area. There are now more than 80 across the UK and a group of city businesses is leading a move to add Aberdeen to the list. 

A group of businesses in Aberdeen's city centre are driving forward an initiative to make it cleaner, safer, more welcoming and generally more friendly.

They are overwhelmingly supporting the development of a Business Improvement District (BID) for the city centre and as an initial step, they have set up a company which is required to take the project forward.

The aim is to enhance the city centre so businesses benefit by encouraging more visitors to come to the area, encouraging them to stay longer and to spend more.

The Aberdeen Bid Development Company has been incorporated as a result of the support of Aberdeen City Centre Association (ACCA) which includes major players like John Lewis, Marks & Spencer and Boots as well as the mall owners and independent traders.

The BID area is not yet decided but is likely to include Union Street and most of the centre of the city from Union Square and Guild Street in the South, to John Street in the north.

BIDs, and the projects then agree to adopt, funded from a small compulsory levy on businesses within the BID area - typically 1% of their rates - which is normally supplemented by the local authority.

Brian Wallace, the Aberdeen BID development coordinator, has spent the last 15 years working working at the interface between the private and public sectors and has extensive knowledge of the North-east.

Over the past five years he has been assisting ACCA in its efforts to improve its level of influence in the city.

He explained that BIDs originated in North America in the 1960's as a vehicle to improve the performance of businesses and most, but not all, are located in town and city centres. They also cover business parks, industrial estates and even industry sectors where the companies are extended across a wide geographical area.

"Three things make BIDs attractive," he said. "Firstly, they are business led and delivered so they respond to local needs and interests and are able to do so quickly outwith the public sector process.

"Secondly, all of the funds collected are used locally for the intended purpose.

"Thirdly, once in place, they become compulsory and all eligible non-domestic rate payers have to contribute. This means that they are inherently fair since all contribute and all benefit."
The BID adoption process begins with widespread consultation before a proposal outlining the specific aims and improvements is sent out for further consultation. It's a process which normally takes around 18-24 months and concludes with a ballot of businesses within the area to determine whether or not the BID will go ahead.

For the BID to go ahead it has to be supported by the majority of non domestic ratepayers and more than 50% of the collective rateable value - a condition which prevents the interests of either big or small players dominating the proposal.

BIDs have existed in England since 2004 with the legislation to allow BIDs in Scotland coming into force in 2007. To date they have been set up in Bathgate, Inverness, Clackmannanshire, Falkirk, Edinburgh and Alloa.

The Aberdeen BID is chaired by Andrew Murphy, managing director of John Lewis in Aberdeen and Edinburgh, who oversaw the successful development of the Edinburgh BID.

"The only unsuccessful ballot was in Glasgow at the end of November when the proposal failed by only five votes," said Mr Wallace. "Unfortunate timing is widely acknowledged as the main cause.

"A BID lasts for up to five years, after which it can be re-elected. Initially, most concentrate on themes of ‘more attractive, cleaner, safer, better' which involves improving the immediate environment followed by improved marketing and events promotion.

"In August we completed a major study looking at the function of the city centre and the evidence showed that Aberdeen has been drifting and that the retail and leisure sectors have been leaking business. The city centre has also been growing remote from its traditional customer base in the ‘Shire hinterland.

"The BID has come along at the time when there is a growing awareness - amongst the private and public sectors - that the city centre needs to improve its offering.

"There is a new and encouraging consensus between the private sector and the more enlightened officers and elected members. This is evidenced by the financial support which Aberdeen City Council is providing to assist with the development of the BID between now and the ballot.

"Given the current economic climate there will be a lot of work required however, the view of the private sector is that without such an initiative, Aberdeen will continue to be characterised by passive incrementalism and will slide down the ranking of regional European cities."