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ABID FAQs
ABID (In Development) FAQs – Accommodation Providers Only
What is a Business Improvement District or BID?
A BID brings businesses from a defined area together to explore how to improve their working and trading environment by creating additional projects and services. Businesses within the BID area agree the level of funds they will contribute and have control of how the money is spent.
What are the benefits of a BID?
A BID provides funds to deliver additional services to the area that are in line with what local businesses want to improve and may include promotion of the area, training and skills, events or a greater voice on key issues. However, the legislation does not put a limit on what products or services can be provided.
How will it be funded?
In a standard BID, (such as existing Norwich BID) businesses pay an agreed levy based on the rateable value (RV) of their premises: for the Norwich BID this is set at 1.1% of the RV for Businesses with a rateable value of £30,000 or more in the defined area.
For the Norwich Accommodation BID (ABID), an exciting new methodology will be used based on the Manchester ABID model. In the case of the Norwich ABID, the levy is based on an accommodation provider with a ratable value of £40k or more and 10 or more rooms. Businesses that meet this criterion and are within a 10-mile radius of the city centre, will be subject to the levy, if there is a successful ballot vote ‘Yes’.
The hotel may then apply a small ‘City Visitor Charge’ to each room, the charge is then calculated based on occupancy. For the Norwich ABID, the charge will be £2 (VAT included), based on a 70% occupancy rate across the year. Any levy accrued over the 70% would be retained by the hotel to support the local accommodation sector.
How long is the tenure of the ABID?
Up to five years’ maximum and then another ballot must be held.
How will the BID help me and my business?
The BID provides extraordinary value for money, delivering additional services as asked for by businesses. Our work focusses on the hotel sector and encompasses Norwich city centre and the surrounding area, helping to improve the Norwich experience and support your businesses. An ABID creates a collective fund that will improve and promote Norwich, delivering projects and giving your business a powerful voice to advocate for your needs.
Are there any other ABIDs in the UK?
Liverpool and Manchester both have operating ABIDs, with Bournemouth, Christchurch and Poole planning to start in September. We are also aware of other destinations at various different development stages for ABIDs, including Chester, Nottingham and Newcastle.
What is the process?
We have held consultations with hoteliers across the proposed area, and with the Norwich Area Hoteliers Association (NAHA), and are developing the business plan for the ABID. The results of the survey, alongside further consultations and meetings with the ABID steering group, a business plan will be presented at the next NAHA meeting on the 15th October.
Pending approval from the NAHA, the planned date to go to ballot is the 31st of January, and if approved, the planned start will be April.
Who will make the decisions on how the money will be spent?
During the development stage we have worked with accommodation providers across the city centre and the wider Norwich area to discover your priorities, ideas, and requests. The ABID Business Plan will collate this input to create a five-year plan.
The Business Plan will be given to every voting business in the ABID area along with a postal ballot voting form; the planed ballot will open from 31st January to the 28th of February. For the ABID to be successful there must be a majority vote both in number of votes, and in rateable value.
How will the ABID be managed?
The ABID will be run by the businesses for businesses.
It is NOT part of the local authority and is set up as a limited company. After a successful ballot, a new ABID Board will be set up, which will be made up of representatives from local businesses within the ABID area to implement the Business Plan and will be accountable to the ABID levy payers.
How will local businesses be consulted?
Every prospective ABID levy payer will receive communications and will be invited to consultations and the NAHA quarterly meetings.