Business Improvement Districts: Good or bad? by Shane Bray
Today I want to tell you about something that’s quietly reshaping our town centres: Business Improvement Districts, or BIDs.
What are BIDs?
On paper, BIDs sound like a good idea. Businesses in a local area can vote to pay a bit more—called a levy—to fund improvements like street cleaning, events, safety patrols, or marketing campaigns. But beneath the surface, BIDs raise serious concerns.
BIDs began in the early 1970s in Canada. But over the decades, they have spread into many other countries, including the UK. Locally in south-west Surrey, there has been a BID in operation in Guildford since 2013. Godalming, Farnham and Cranleigh have had BIDs since 2024, though the one in Cranleigh, in particular, has been the subject of considerable controversy. And a BID is being proposed for Ash Vale.
Criticisms and Issues
The main issues with BIDs are:
- Undemocratic processes to establish and renew them.
- Lack of transparency when established.
- Favouring big business over smaller independents.
- Displacing, but not solving, local area social issues.
In truth, BIDs often represent local councils shifting their traditional responsibilities—like street maintenance, safety, or public services—onto private businesses. These are services that used to be paid for through our taxes, not through extra levies imposed on already struggling high streets.
Undemocratic processes
The way these schemes are run is deeply flawed and undemocratic. Traditional democratic procedures give everyone an equal voice; but not so with a BID. Not all votes are counted as equal. This has led to a situation where councils can swing BID votes – even when businesses say No.
All BIDs are created or renewed through a vote. But the voting system is heavily skewed. A BID passes if:
- A majority of voters say yes, and
- Their combined rateable value is higher than the “no” votes.
That second rule gives larger landowners and councils massive influence—and many small business owners don’t even realise this is happening.
For example, in Clevedon, Somerset in 2023, in a vote to renew the BID, just 9 votes were cast in favour—not exactly a tidal wave of support. But North Somerset Council, owning car parks and public buildings, used 6 heavily weighted votes to push the BID through.
Councils have an advantage over businesses under this voting system, for several reasons. First, councils can cast multiple votes as property owners. Second, those same councils often pay discounted levies. Yet, they hold a disproportionate say in whether the BID is created at all. And once it’s in place, small businesses pay the full cost—often with little or no control over how that money is used.
Lack of Transparency
Not only are BIDs set up under processes which heavily advantage the councils proposing them, but there is a complete lack of transparency when they are established.
Once a BID is formed, it’s run by a private organisation, not the council. And oversight is limited.
Many business owners don’t know who’s on the board of the BID. They never see clear reports. And they can’t easily challenge spending decisions.
For example, in Stratford-upon-Avon in 2023, dozens of businesses spoke out during a BID renewal. One called it “as transparent as a brick wall.” [[1]]. They had paid thousands, but couldn’t see where the money had gone—or what benefit they’d received.
Unfair Financial Burden on Independent Businesses
The BID levy is based on property value—but in reality, it hurts small businesses most.
For example, in Birmingham Retail BID, independent retailers said they were “taxed to fund benefits for big chains.” The BID spent heavily on marketing and promotions aimed at national brands, while small shops struggled to stay open.
Moreover, BIDs often promote a “clean and safe” image that’s really about attracting big brands and investors—at the expense of local identity.
In a BID in Camden, London, small traders said the BID focused only on tourist zones. In Brixton, locals warned that the BID was driving gentrification, displacing Black-owned and Caribbean businesses that had been part of the community for generations.
Displacing, Not Solving, Social Issues
BIDs frequently fund private security or design measures that exclude vulnerable groups, like rough sleepers or street vendors.
For example, the Leicester Square BID (London) supported efforts to move homeless people out of sight during peak tourist times. Critics called this a PR move—not a solution. And a 2022 study from City University of London confirmed that while BIDs reduce crime inside their zones, they often just displace it elsewhere.
BIDs Are Everywhere — Often Without Your Knowledge
There are over 300 BIDs in the UK today—from London and Liverpool to Bath, Scarborough, and Clevedon.
Many small business owners are shocked to find themselves paying hundreds or thousands per year for services they neither wanted nor benefit from—all because a council and a few large landlords voted it through.
Local Examples
Cranleigh BID
Cranleigh’s BID is a textbook example of poor consultation and dissatisfaction:
- Very low ballot turnout: Only around 34% of eligible businesses voted. Many claim they never received proper information or a voting paper.
- Broken promises: Businesses report minimal visible improvements despite substantial levy payments.
- Perceived deception: One local blog said the BID was “bounced in on a pack of lies,” due to vague benefit claims made prior to the vote.
- Council offloading responsibility: Traders argue the BID is simply a way to shift public duties, like street cleaning and signage, onto small private businesses.
The Cranleigh BID has sparked a movement against it: [[2]]. And the BBC has reported on it, here: [[3]].
Farnham BID
- Low turnout: Fewer than one in four eligible businesses returned ballots—only 100 votes cast out of approximately 420 eligible, a turnout of 23.7%, with 75 votes in favour and 25 against.
- High weighting by rateable value: The BID passed with 81% support based on rateable value, showing how votes from high-value landlords outweighed the majority of small independents.
- Concerns over consultation: While BID organisers claimed to consult widely, some businesses reported low attendance at meetings, and others questioned why some key trading areas were excluded.
- Shift of council duties: The BID’s plan describes projects as “over and above” public services, but many traders suspect this is simply a substitute for council cuts, now passed on to levy-paying businesses.
Godalming BID
Godalming’s BID went ahead with a small number of votes, raising democratic concerns:
- Tiny turnout: The BID passed with just 53 ‘yes’ votes out of around 76 ballots cast—likely only a small fraction of eligible businesses.
- Poor engagement: As in Cranleigh, businesses said they were not properly informed or consulted; some only realised after receiving the levy bill.
- Doubt over benefits: Some businesses say they’ve seen little visible return, with promotional efforts mostly benefitting larger national retailers. A group of local businesses have formed to oppose the BID.
A personal experience
From my direct experience running a high street business, I can say the Godalming BID process lacked transparency and genuine consultation. Many businesses, were unaware of key details and in some cases totally unaware until invoices appeared. Dropping occasional leaflets and asking general questions like “Would you like more visitors to the high street?” is not meaningful engagement. At no point were costs properly outlined, the ballot was poorly publicised, and turnout was low—yet the result is binding and financially compulsory.
If BIDs were introduced through a clear, democratic process with proper outreach and minimum turnout thresholds, I would be far less critical. But in this case, and in others nationally, they appear to have been pushed through with limited input from the very people expected to pay for them.
Guildford – “Experience Guildford” BID
Guildford’s BID has drawn sustained criticism from local independent businesses over the following issues:
- Aggressive enforcement: Independent skateboard shop Decade was taken to court over a £152 unpaid levy, with the owner describing the BID as “a tax to fund a marketing company and security force.” The shop has since closed.
- Transparency concerns: Businesses have repeatedly expressed frustration over not knowing how levy money is spent. Some describe the BID as an “extortion racket,” using biased surveys and heavy-handed PR.
- Privatisation of public space: The BID funds a Business Crime Reduction Partnership, which excludes individuals (e.g. suspected shoplifters or rough sleepers) from town centre areas. Councils have failed to tackle the root causes of homelessness and are now using BIDs to move the problem out of sight instead.
- Targeted services: Shopkeepers argue benefits like cleaning or events mostly support national chains—leaving independents to foot the bill without real return.
Is Ash Vale Next?
We need to stand up for Ash Vale and protect our community from the introduction of a Business Improvement District (BID). It’s vital that we educate local businesses now—before it’s too late. They must be made aware of the serious issues BIDs have caused in nearby towns like Cranleigh, Farnham, Godalming, and Guildford, where many traders have been left frustrated, financially burdened, and ignored.
Ash Vale still has a chance to avoid this unnecessary and damaging scheme. As soon as there are signs that a BID process is being launched here, we must be ready to act. That means getting out into the community, speaking directly with business owners, and making sure they understand what a BID really means—higher costs, less control, and often, very little benefit.
This is not just about stopping a levy. It’s about defending our high street, protecting independent traders, and ensuring decisions are made with—not against—the will of local businesses.
What Can You Do?
Next time you’re in your town centre or local high street—especially if you’re visiting independent cafés, shops, or salons—ask the business owners:
- “Are you aware there’s a BID here?”
- “Do you think it’s helped or hurt your business?”
- “Did you feel you had a fair say in the vote?”
These simple questions help shine a light on a system that too often operates in silence—and they give small businesses a chance to be heard when councils won’t listen. Or, as I suspect, just don’t care.
In summary BIDs could be about communities working together and that’s how they are sold to us. But in reality, they are simply a way for councils to outsource public services, for developers to gentrify neighbourhoods, and for small businesses to pay the bill without having a voice.
Let’s help change that—by listening, questioning, and standing up for fairness.
Shane Bray manages an estate agent office in Surrey, and is interim Vice-Chair of Reform UK Godalming and Ash branch.
[[1]] https://www.theguardian.com/business/2024/apr/14/as-transparent-as-a-brick-wall-british-firms-fight-back-against-business-improvement-districts