An analysis of the financial and investment capacity of business improvement districts

In current times of economic austerity, the retail sector in many towns and cities are suffering significantly from funding cuts to public services and a lack of investment. With many retail businesses feeling the effects of reduced consumer spending innovation in business-led initiatives are becoming increasingly important in realising the potential of town/city centres to bring key stakeholders together and to develop solutions that facilitate economic growth. Research, such as the Portas Review on the Future of the High Street, points to the critical role that Business Improvement Districts (BIDs) can play in revitalising the high street and co-ordinating concerted change. In this regard BIDs have become firmly established in the urban landscape as the preferred model for cost effective and innovative local service delivery and area improvement. This paper, based on research findings from a comprehensive survey of 91 formal BIDs across the UK and Ireland, analyses the income and investment capacity of BIDs with evidence suggesting a strong multiplier effect which increases with BID maturity. The paper also demonstrates the viability of the UK BID model in leveraging diverse sources of additional revenue and the increasing influence of commercialisation activities in supporting the BID additionality principle. Specific analysis focuses on the performance of renewed and London-based BIDs in leading the value added contribution which the business-led model is delivering in towns and cities.