Business Improvement Districts Working Group: Business Improvement Districts (Bids) in Rural Areas: Paper 05/07

DescriptionBIDWG Paper
ISBN
Official Print Publication Date
Website Publication DateMarch 10, 2005

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    BUSINESS IMPROVEMENT DISTRICTS WORKING GROUP
    USINESS IMPROVEMENT DISTRICTS (BIDS) IN RURAL AREAS:
    Paper 05/07

    This document is also available in pdf format (88k)

    The following figures were supplied by the Ayrshire Valuation Joint Board (AVJB) in connection with the introduction of Business Improvement Districts (BIDs) in rural areas. They reflect both the total Rateable Value (RV) of all subjects, as listed within the current Valuation Roll, located within each rural settlement area and the amount of RV attributable to subjects described as shops and offices.

    A range of population sizes of were looked at - 1, 2, 4 & 6 thousand, in order to identify a suitable settlement. The only other criterion used was that they were 'rural' in nature.

    Please also note that two of the settlements listed have adjacent developments which have been shown separately (holiday resort 'cabins' at Dailly and a whisky related bonded store at Beith)

    Town (*1)

    Population (*2)

    Total No. Of VR Entries (*3)

    Total Current RV (*4)

    No. Shops / Offices (*5)

    RV Shops / Offices (*6)

    Dailly

    860

    36

    £210,830

    4

    £9,900

    Not included in figures above for Dailly - Brunston Holiday Resort - 76 self catering units

    76

    £92,800

    Patna

    2240

    73

    £447,410

    12

    £32,250

    Mauchline

    3980

    158

    £771,945

    42

    £116,405

    Beith

    6200

    194

    £1,864,205

    64

    £308,350

    Not included in figures above for Beith - Bonded store & Admiralty Depot

    2

    £2,085,000

    * Key

    (1) Town - These rural settlements are located in North, South & East Ayrshire.
    (2) Population - The figures from the General Register of Scotland (published tables 2001).
    (3) Total No. of VR Entries - This figure relates to the total number of entries in the Non Domestic Valuation Roll for the rural settlement. This includes subjects such as schools, churches, halls, workshops, public toilets, hotels and is inclusive of the shops and offices (also shown separately).
    (4) Total Current RV - This is the current Rateable Value as listed within the Valuation Roll. This will be reviewed under the 2005 revaluation with effect from 1 st Apr 2005
    (5) No. Shops / Offices - This indicates the number of subjects included within the totals that are described as either a shop or office within the rural settlement.
    (6) RV Shops / Offices - This details the Rateable Value attributable to the subjects described as shops or offices within the totals shown.

    It can be seen from the above table that the levels of total rateable value associated with each rural settlement does not appear to be substantial enough, if limited to 'retail' interests, to support a BID. Further consideration must be made as to which subject types would be exempt from the levy (churches, public toilets, etc.); and as to whether this would be at the discretion of the BID Board.

    However the following table details an approximate level of levy required to raise a fund of £10,000 for the BID, based solely on rateable values.

    nb The current non domestic levy, inclusive of a water & sewerage element is approximately 46p.

    Town

    Approximate Levy Required to Raise £10,000

    Shops / Offices Only (pence)

    All Valuation Roll Entries (pence)

    Dailly

    101

    4.7

    Patna

    31

    2.2

    Mauchline

    8.5

    1.3

    Beith

    3.2

    0.5

    At present most if not all parties involved in the current pilot schemes: ODPM, British Retail Consortium, Boots, Land Securities, etc. have indicated that a levy in excess of 1% (1 pence in the pound against Rateable Values) would not be acceptable.

    Therefore the figures above would appear to highlight a stumbling block in the introduction of Rural BIDs with regards to critical mass.

    Scottish Executive
    Land and Property Division

      Page updated: Friday, March 31, 2006