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

Business Improvement Districts in London Nabeel Khan GLA Regeneration Team

CONTENT • 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

BACK IN 2012… • 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

PRESSURE ON LA BUDGETS • 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

THE LONDON LEP Four key priorities are: • Skills & Employment • Micro, small & medium sized enterprises • Digital creative, science and Advisory role technology • Infrastructure

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 1. Stay open for 2. Champion micro, 3. Train more 4. Improve digital business small and medium technical talent in the connectivity enterprises creative and tech •Strengthen London’s voice •Acceleratethe roll-out of sectors on national Immigration high-speed broadband or •Strengthen London’s High policies the take-up of ethernet Streets and Places of Work •Develop a better •Strengthen London’s voice •Encourage the take-up of •Coordinate the business understanding of the talent on the UK’s relationship superfast broadband where support offer available to gap with Europe it is already in place London’s SMES through the •Create a robust process for •Consider actions to support London Growth Hub monitoring London's other connectivity issues •Scale-up London’s SME performance on technical (e.g. wi-fi, mobile data) community through skills in the creative and improving access to tech sectors finance, international trade •Build a set of short, and leadership capacity medium and long term interventions

WHAT IS A BID? • 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

BIDS IN LONDON 61,000 Total 51 annual levy 905,250 income Total number of People employed £24.9 m in BID areas firms in BID areas 78 BIDs Total additional 13,300 income Total number of £5.5 levy-payers million Partnerships with key stakeholders Total Businesses on turnover 56 BID boards in BID Local authority areas representatives £356.5 on BID boards 489 million Additional services provided by BIDs 66 Property owners 156 287 on BID boards Full-time empoyees

THE EVOLUTION OF 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

N O S U C H T H I N G AS A T Y P I C AL B I D £ e Levy income and additional in com e F B i g . c 4 : I D I n o m £6,000,000 £5,000,000 £4,000,000 £3,000,000 £2,000,000 £1,000,000 £0 L e v y I nc o m e Additional I nc o m e Source: British BI Ds .

LEP SUPPORT FOR 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.

BIDS WE HAVE SUPPORTED • 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

The Evolution of London’s BIDs 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 THE EVOLUTION OF LONDON’S BUSINESS _ W E B _ 0 2 0 3 1 6 . P D F IMPROVEMENT DISTRICTS Report March 2016

Case Study 1: Love Wimbledon BID Established: 2010 (renewed in 2015) Businesses: 420 Staff: 5 Levy income: £1,516,970

Case Study 2: South Bank BID Established: 2014 Businesses: 184 Staff: nil Levy income: £450,000

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

Business A Business Improvement Partnership for Districts Old Street Ruth Duston Primera Corporation Ltd

National and Political Context • 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

BIDs • Economic well being and economic growth • Attracting inward investment • Giving competitive regional advantage BIDs are at • Producing social well being / improving quality of life the heart of • Developing partnerships between the private and public business-led sectors partnerships • 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

London Context

Victoria BID footprint

Investment in Infrastructure

Why Does Victoria Need a BID • Retain competitive edge • Contracting public purse • Neighbouring BIDs • Leverage investment and growth • Distinctive combination of Business Sectors • Development pipeline and economic growth

Victoria’s Success • 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

Cheapside BID Boundary

Cheapside Business Alliance • 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 opportunities 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 of Cheapside as an office and retail destination.

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