Once a BID is voted in it has a legal mandate to run for 5 years, before holding a renewal ballot so it can attempt to run for another 5 years, and so on. However, some BIDs are given mandates in very stealthy and underhanded ways when going to ballot, meaning they don’t have the real majority support of their levy payers even if they win a mandate, and in other circumstances BID companies fail to deliver and then lose the support of their levy payers. Either way, if the situation becomes dire then BID legislation does allow for and efforts can be made to ask a Council to terminate a BID earlier than the end of its 5 year term, but it can be exceptionally hard to achieve.

Towns that have managed to kick out their BIDs early include Dartmouth, Hexham, Abingdon and Colwyn, but to have any chance of doing so, ultimately it requires the BID Company Board to make the decision itself to do so, and if they ‘dig their heals in’ it just won’t happen. This is one of the problems of a few people (the BID Board Directors) having too much power allowing them to do what they think is best, whether it’s in the best interests of the majority of levy payers or not. The legislative power to terminate a BID area lies with its Council, and Councils tend to do what the BID companies wants, hence the need for the BID Company itself to admit defeat and request termination to its Council.

Ultimately BID arrangements are owned by Councils and BID companies are effectively sub-contractors delivering the BID arrangements for Councils. A BID company can decide to stop delivering BID services for a Council and close itself down when it wants, it has no legal obligation to continue for 5 years. A good example is Swindon BID, which in 2023 and just one year into a renewed five year term, decided to shut shop. So don’t ever let a BID company tell you it can’t close down or has a legal responsibility to deliver for 5 years, it doesn’t! If businesses don’t want their BID there is nothing stopping BID arrangements being terminated, which is why Government BID legislation allows for it.

Anyway, at least you know it can be done, government legislation about BID termination is below, and we suggest you read about Dartmouth, Hexham and Colwyn which provides you with insight on how it was done in these towns. But be warned, it will be an uphill struggle unless you really have mass levy payer support against the BID, the BID company Directors agreeing to close down the BID company, and ultimately the Council in agreement as it is they who have the legal power to terminate the BID arrangements. If you don’t have this support then you may well be better biding your time until the next renewal ballot, and put your efforts into defeating it then to kick the BID out.

Good luck!

The Business Improvement Districts (England) Regulations 2004

UK Statutory Instruments > 2004 No. 2443 > Regulation 18

Termination of BID arrangements

18. - (1)  The relevant billing authority may terminate BID arrangements where—

(a) in the opinion of the authority, the BID body will have insufficient finances to meet its liabilities for the current chargeable period and the authority has—

(i) offered the BID body a reasonable opportunity to arrange for financing the shortfall or for a reduction in the works or services under the BID arrangements which is sufficient to offset the shortfall; and

(ii) given those persons who are liable to the BID levy an opportunity, at a public meeting, to make representations in relation to the termination of the BID arrangements; or

(b) the authority is unable, due to any cause beyond the control of the authority, to provide works or services which are necessary for the BID to continue and the authority has—

(i) where there is a BID body, consulted the BID body and conducted a consultation with such representatives of the business community for the geographical area of the BID as the authority considers appropriate; and

(ii) where a local authority BID body is responsible for implementing the BID arrangements, conducted a consultation with such representatives of the business community for the geographical area of the BID as the authority considers appropriate.

(2) Subject to paragraph (3), the BID body or, where a local authority BID body is responsible for implementing the BID arrangements, the relevant billing authority may terminate the BID arrangements where—

(a) the works or services to be provided under the BID arrangements are no longer required; or

(b) the BID body or local authority BID body, as the case may be, is unable, due to any cause beyond its control, to provide works or services which are necessary for the BID to continue.

(3) The BID body or, where a local authority BID body is responsible for implementing the BID arrangements, the relevant billing authority shall take no steps to terminate the BID arrangements until—

(a) where there is a BID body, it has consulted the relevant billing authority and conducted a consultation with such representatives of the business community for the geographical area of the BID as the authority considers appropriate; and

(b) where a local authority BID body is responsible for implementing the BID arrangements, the relevant billing authority has conducted a consultation with such representatives of the business community for the geographical area of the BID as the authority considers appropriate.

(4) The relevant billing authority shall notify the BID body in writing of its intention to terminate the BID arrangements under paragraph (1) or (2) at least 28 days before the date of the termination.

(5) The BID body shall notify the relevant billing authority in writing of its intention to terminate the BID arrangements under paragraph (2) at least 28 days before the date of the termination.

(6) Where BID arrangements are terminated under this regulation the relevant billing authority shall, as soon as is reasonably practicable, give notice of the termination in writing to each person liable for the BID levy and the notice shall include an explanation of whether a repayment under regulation 14(4) is to be made.