the bid budget projection
projected income to the bid
The Leatherhead BID feasibility study, based on the premises within the published map, indicate that approximately £190,000 of BID levy could be raised each year. This equates to nearly £1m of investment in Leatherhead over the 5-year BID period. Most BIDs also raise additional income from trading activity, sponsorship and voluntary levy contributions. Leatherhead with a projected gross income of £190,000 per annum is considered to be a small town BID.
projected costs for running the bid
All BIDs incur expenses in running their operation. The main costs incurred include; the levy collection costs charged by the local authority, the normal running costs for a small business, plus, for most BIDs, the cost of employing a BID manager or co-ordinator. For new BIDs, there is often the repayment of the initial set-up and development loan provided by the council.
BID initiatives, projects and activities budget
The balance remaining after costs are deducted create the budget for the BID to provide services, undertake initiatives, projects and activities throughout the year. Our draft budget below has made a provisional percentage allocation against a number of key themes identified as priorities for the BID. However, the survey we are now running will help focus these into our final business plan and BID proposal which will be published in parallel with the notification of ballot paper dispatch.
annual review of performance against business plan
The BID Board will undertake an annual review of its business plan against what was published in the proposal vs. what has been done and achieved with the levy income and expenditure budget. This review will be published annually as soon as possible after the year-end.
5-year commitment of funding
Once a BID has a positive ballot, its annual funding is secure for a 5-year period before it has to go to re-ballot. This provides continuity of funding for the BID. Many worthwhile initiatives fail as funding is hand-to-mouth annually or a disproportionate amount of time is spent fund-raising.
'sunset clause' year 5
The Government BID legislation dictates that the maximum period a BID can operate is 5-years before a re-ballot must take place to allow levy payers the chance to re-confirm their support for the BID. In practice nearly 90% of BIDs are voted to continue, but this clause gives levy payers an opportunity to vote against a BID renewal. The costs for re-ballot are included in the budget for year 5.
the leatherhead bid proposed draft budget
Notes to the Leatherhead BID Draft Budget 2026-2030
- Projected income of £190,000 levy per annum, gross before any costs.
- Levy collection costs from MVDC rise by CPI estimate annually
- BID co-ordinator works 3-days per week average or equivalent hours
- BID development loan interest free, repayable over 5-years
- Activity / Theme % allocation is draft subject to final survey results
- Non-levy income is budgeted at £5k per annum, low estimate
- Year 5 includes a £20k provision for BID renewal costs
Want to know more?
The BID Shadow Board acknowledge that the above budgets are proposed and draft, should you want more details please email us via the button below:
The BID levy
Where does the BID funding come from?
BID funding comes from a small financial levy expressed as a percentage of their rateable value (RV), charged to eligible businesses within a defined BID area. (See map). This levy is paid by the businesses into a ring-fenced fund that can only be used to deliver services and activities agreed by the BID board and published in their business plan / BID proposal, following a successful ballot.
How is the levy businesses have to pay calculated?
The BID levy (normally between 1.5% and 3.0%) for Leatherhead is 2%. This is calculated against the 'rateable value' (RV) of a premises or in BID jargon is called a 'hereditament'. For example if a premises has a rateable value of £15,000 the BID levy based on 2% would be £300 for the year. Any business can check its rateable value online at https://www.gov.uk/find-business-rates
is the levy charge proportionate to my business?
BIDs base their charge against a premises rateable value which is determined by the Government's Valuation Office. Larger premises or those in more prime locations generally have a higher rateable value. Businesses can appeal their rateable value to the Government Valuation Office or Business Rates Department at your local council. The BID has no say on determining rateable values. We only use the official RV to calculate BID levy to be paid by the business.
are there any exceptions or exemptions?
The Shadow BID board, after research and consultation, have proposed that for the Leatherhead BID any business with a rateable value under £8,000 would be exempt, plus any charity and not-for-profit premises that currently receive local business rate relief from Mole Valley District Council and have a rateable value of under £70,000 would be exempt from paying any BID levy.
How is the bid levy collected?
The local council, in this case Mole Valley District Council, will calculate the BID levy due for each premises within the BID area, produce an invoice for the levy payable and send out the BID levy invoices. They also will collect the levy payments and then transfer the collected levy payments to the BID. The council is also responsible for collecting any non-payments and legal collection of outstanding levy payments due. The BID pays an annual fee for the council to provide this service.
Do I have to pay my bid levy?
If your premises is within the defined BID area, the ballot has been successful (majority by rateable value and majority by number have voted yes) and you are not an exempted premises, then you will be liable to pay your BID levy as calculated. Your levy payment together with all the other levy payments create the budget for the BID to deliver what it said it would do in its business plan / proposal. Without levy funding the BID would not be able to operate.