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The Evolution of London's THE EVOLUTION OF LONDON’S BUSINESS IMPROVEMENT DISTRICTS Report March 2016 Future of London is an independent not- Established 2001, Rocket Science is for-profit urban policy network focused an independent research, consultancy on the challenges facing regeneration, and grant-management practice fo- housing, infrastructure and economic cused on making a difference to the development practitioners in the Capi- lives of people and communities across tal. We are a borough-led membership the UK. We work with governments, organisation with a number of external business and the voluntary sector to partners, which provides top career de- design and evaluate services which velopment, expert-led policy research, best meet the needs of different cities and topical networking and speaker- and localities. led events. Future of London Rocket Science UK Ltd. 70 Cowcross Street 70 Cowcross Street London, EC1M 6EJ London, EC1M 6EJ futureoflondon.org.uk rocketsciencelab.co.uk @futureofldn @_RocketScience_ Future of London Rocket Science UK Ltd Contents 1. INTRODUCTION 1 2. BIDs IN LONDON 4 3. FUNDING POLICY CHALLENGES 9 4. LONDON BIDs SWOT ANALYSIS 11 5. IMPACT: PROJECTS AND SERVICES 13 6. CASE STUDY: VICTORIA BID 21 7. COLLABORATION AND PARTNERSHIP 23 8. CASE STUDY: SOUTH BANK BID 24 9. BID MANAGEMENT AND GOVERNANCE 29 10. CASE STUDY: LOVE WIMBLEDON 34 11. SUPPORT FOR BIDs IN LONDON 36 12. CASE STUDY: ORPINGTON FIRST 40 13. RECOMMENDATIONS 41 14. CONCLUSIONS 42 15. APPENDIX 1: SCOPE 43 16. APPENDIX 2: DATA 44 17. ACKNOWLEDGEMENTS 47 © Future of London 2011 Ltd Future of London 2011 Ltd is a not-for-profit company limited by guarantee. Registered in England and Wales (Reg. No. 7575624) 2 The Evolution of London’s Business Improvement Districts 1 INTRODUCTION Like so many of the systems and ser- while many people can’t say which in the context of gradual economic vices Londoners take for granted, Busi- initiatives and services are provided by recovery, is already proving extremely ness Improvement Districts (BIDs) have BIDs, their absence would be obvious. useful. become integral to the liveability of this Now, with more opportunity to move complex city. Quantitative economic im- from ‘branding, bins and baskets’ to The research has followed and com- pact may still be difficult to assess, but regeneration, planning and place-shap- plemented other projects, including a 1 move from a high street managed by a ing, Business Improvement Districts are London Assembly review of BIDs and solid BID to one without that support, poised to become truly integrated into current research on business rates, and the difference is marked. What’s the municipal landscape. streetscape, planning policy and re- starting to happen behind the scenes lated developments, to make the project has even more potential – for BID mem- This growing influence also means outcomes as current and as broadly bers, the communities they serve and BIDs must be increasingly accountable useful as possible. the boroughs that host them, as well as for their actions, reporting not only to Finally, this report is designed to be for London’s competitive edge in the levy-paying members, but to a far wider shared beyond the GLA/LEP as commis- international destination rankings. group of stakeholders. BIDs, boroughs and other tiers of government also need sioner and the London BID industry, to Since their introduction in 2005, to navigate changing relationships – make the wider public aware of what London BIDs have evolved to generate political, contractual and operational. Business Improvement Districts can offer, project funding in the millions; explore how they can be sustainable – and new service, regeneration and Neigh- This report charts that path, through a what Londoners can expect of them. bourhood Planning opportunities; and detailed, independent assessment of thanks to Greater London Authority and the role, impact and potential of BIDs Notes on scope and research London Enterprise Panel grants, become in London, with a focus on high street process a cohort of 50 organisations stepping and town centre BIDs. It builds on Project partners Future of London and up in an increasingly self-sufficient existing knowledge, updating the GLA- Rocket Science used desk research, municipal environment. commissioned 2012 study, but goes data analysis, surveys, focus groups beyond economic impact – notoriously and case studies to assemble the report In the context of London’s growing pop- difficult to gauge given London BIDs’ evidence. ulation and councils’ shrinking budgets, variety and the economic rollercoaster the recent Department for Communities from 2005 to 2016 – to back up the The research is concerned with the 36 and Local Government consultation on numbers with experience, and produce high street and town centre BIDs that BIDs has opened the door to far more actionable intelligence. were operational in October 2015. It participation in service delivery. does not include the industrial BIDs or Since 2012, several new BIDs have those that have since had successful Many BIDs already have a better rela- emerged, many with GLA and borough ballots. tionship with central government and support, and the Mayor’s target of 50 entities such as Transport for London London BIDs by the end of his second For more information on the research than their local authority hosts do, and term has been met. Capturing the expe- process and scope, see Appendix 1. are an effective lobby. At street level, rience of these newcomers, especially The Evolution of London’s Business Improvement Districts 1 1.1 Executive Summary Like many of the systems and services With a focus on high street and town There are challenges, of course. BIDs Londoners take for granted, Business centre BIDs (industrial BIDs are being re- must serve their business members first. Improvement Districts have become searched separately), this report covers Higher business rates and additional integral to this complex city. Quantita- the current state of BIDs in London; sup- levies could sap member willingness to tive economic impact is still difficult port, impact and collaboration to date; renew BID mandates. BIDs are not keen to assess, but move from a high street funding, planning and other threats; to become default council delivery bod- managed by a solid BID to one without and opportunities for new services, ies, and conversely, some councils and that support, and the difference is partnerships and influence. voters may balk at transferring control marked. What’s starting to happen to the private sector. behind the scenes has even more poten- In particular, the research highlights the tial – for BID members, the communities growing number of London BIDs with All of this leads to BIDs’ need to be they serve and the boroughs that host a significant effect on – and beyond – increasingly professional and account- them, as well as for London’s competi- their areas, bringing in vital investment able for their actions, reporting clearly tive edge in international destination and forging useful partnerships with the not only to levy-paying members, but rankings. public and voluntary sectors, as well to a wider public. BIDs, boroughs and as with other BIDs. In addition to their other tiers of government also have to As an industry, London’s Business traditional ‘bins, branding and baskets’ navigate changing relationships – politi- Improvement Districts are still emerging. remit, BIDS are now directly involved in cal, contractual and operational. Some are agents of growth and influ- regeneration, place-making, air quality ence, while others may have to prove and employment initiatives. Many of these factors will be tipping their value to members to survive busi- points for existing BIDs. There are still ness rates reform. It is a staggered field Given the context of London’s grow- areas of the capital that could really in which leading BIDs, trade bodies, ing population and councils’ shrinking benefit from a viable BID, but this is partnerships and the Greater London budgets, the recent Department for also a good moment to weigh up the Authority and London Enterprise Panel Communities and Local Government balance between support for creating are working to bring along the whole – consultation on BIDS has also opened new BIDs and nurturing the health, best and there is potential to do much more. the door to far more participation in practice and potential of existing BIDs. council service delivery. This report charts that path. Commis- As funding becomes increasingly com- sioned by the GLA and LEP as London That opportunity and the 50-BID mile- petitive, BIDs must work together – and approached the Mayor’s target of 50 stone make this a fitting time to shift with councils and other partners – to BIDs – a quarter of the UK total – the gears. BIDs offer a five-year revenue secure their status as credible, integrat- research assesses the impact and poten- stream, flexibility, government support ed partners for the long term. It will take tial of London BIDs in a fast-changing and lobbying muscle, local expertise all parties to drive the whole industry municipal environment. The findings and a focus on results. This gives them forward, but the potential for London is build on existing data, and back that a unique ability to innovate and make enormous, and the time to act is now. up with front-line experience as a basis tangible improvements at a time when for practical short- and longer-term local government is struggling to deliver recommendations.
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