British BIDs Conference 2023
Over the recent years, I’ve tried to record the key themes and ideas from presentations at the British BIDs’ annual conference. In a selfless and heroic act (😜), I’ve then shared my notes to keep those unable to attend updated.
Unexpectedly, I found myself present at this year's event. Unfortunately, due to storm Ciaran, many couldn't make it. I hope this summary helps bridge the gap.
Welcome: Throughout the day, Ian Payne from ITV was as insightful as ever. We’re lucky to have such an articulate and well informed ambassador for the industry. He highlighted that BIDs have been operating in the UK for 20 years, spanning seven Prime Ministers, and now count over 330 in number. Ian then introduced Nick Durstan, the newly appointed Chair of British BIDs and CEO of Southbank BID.
Nick Durstan spoke about the "Review of Business Improvement Districts". Produced in collaboration with ATCM, IPM, and The BID Foundation, this report demonstrates a more integrated approach to the Government. Its main goal is to aid the Government in determining if a comprehensive review of the industry is necessary, especially after discussions in the House of Commons. A notable topic within the report is ballot reform. Nick clarified that the Government is seeking increased transparency and accountability from BIDs. The ongoing consultation with senior civil service members has yielded optimistic feedback, setting a positive tone for a potential formal review.
Prof. Chris Turner recently unveiled his annual report on Business Improvement Districts (BIDs). Some key insights:
There are currently 335 BIDs across the UK and Ireland, with a comprehensive list available on the British BIDs website’s Index. Notably, growth in new BIDs is decelerating.
Collectively, BIDs contribute £150m to local economies, which is particularly significant in light of recent council budget reductions.
The average ballot turnout stands at 45%, with the highest recorded at 88%. Approximately 80% vote in favour, with the highest approval nearly reaching 100% based on votes and RV.
61 new BIDs are in the developmental phase, though we saw a loss of 6 over the past year, primarily due to communication breakdowns between the BID and local authorities. Encouragingly, one of these was reinstated after a second vote.
New BID categories, such as Accommodation and Area BIDs, are emerging thanks to adaptable legislation.
75% of BIDs found ballot data compilation straightforward. Also, 64% are engaging national voters.
On average, each hereditament represents £1,000 in levy. Interestingly, the median annual levy income is £294k, suggesting most BIDs operate similarly to small businesses. As a result, many are exploring collaborations to achieve economies of scale.
The trend of offering levy discounts is on the decline. The typical costs for levy collection is £10k.
BID teams usually comprise two members of staff.
Demographics show that 54% of BID managers are female, and the average board size is 10 seats. Around one-third of BID board members are women.
A significant 65% of BIDs incorporate community members on their boards, an important point for government officials.
BIDs play an indispensable role in reducing crime.
Most BIDs receive some kind of government funding. However, it's worth noting that 20% receive no financial support.
Stephen Toal, Head of Property Management Research at Savills, provided insights on current consumer spending habits. Some significant takeaways:
Savills' Perspective: Savills manages approximately a quarter of the UK's retail space, granting them a distinctive lens on the data.
Sales Growth: There's a surge in average UK sales growth by 3.9% this year, a sharp rise from 1.1% in 2022. Conversely, online sales have witnessed a dip of -3.2% year-to-date.
State of Physical Retail: The message is clear: physical retail remains robust. Despite the increase in goods' costs and a dip in transactions, consumer confidence is on the rise. Stephen highlighted, "Physical retail is still alive and well."
Disposable Income: There's been a significant decline in disposable income. The forecast suggests a challenging year ahead, followed by a rebound in disposable income levels.
Trends for 2023: Key highlights include:
Physical outlets remain popular as consumers seek tangible experiences.
While value-driven purchases are prominent, there's a focus on self-indulgence.
Health and beauty sectors are thriving.
Holidays transition from luxury to necessity.
Jewellery is now seen more as an inflation safeguard than a mere luxury.
Retail Status: Post-pandemic, the retail sector seems to have regained its footing and is described as "alive, kicking, and thriving."
Performance Metrics: Top performers in terms of growth over the last five years include:
Fast Food/Takeaway: 0.1%
Sporting Goods: 0.7%
Jewellery: 3%
Confectionary: 9.2%
For this year, when discounting inflation, confectionery witnessed a staggering growth of 28%, leading to the phrase, "Chocolate is the new lipstick."
Underperforming Categories: The laggards encompass:
Music/Books/Games: -18%
Stationery: -24%
Womenswear: -28%
Travel: -33%
However, travel shows signs of recovery this year at -21%.
BID Metrics: Noteworthy statistics from various BIDs include:
Highest spend per card: Colchester (£121.72)
Most transactions per card: Felixstowe (5.8)
Highest average transaction value: Stoke on Trent (£27.46)
Closing Note: The takeaway is clear. People crave in-real-life experiences. With rising online acquisition costs, physical retail continues to flourish.
Rob Sloper, Development Director at LandSec U+I, shared insights on the future of regenerative development in towns and cities. Drawing from his recent experience in Venice, he highlighted that it can take centuries to develop a cultural hub. The question he posed: how can we speed up the creation of that “magic essence”?
Partnerships and Regeneration: Rob emphasised that regeneration thrives on partnership. He cited the Millennium Dome as a cautionary tale of how nepotism and the absence of a unified vision can lead to failure. Conversely, when executed effectively, regeneration can be a catalyst for transformation. He stressed the importance of BIDs and developers collaborating more closely.
Place Making: Regarding place making, Rob candidly remarked, “I find place making a bit puzzling… a bit disingenuous.” His perspective is that the place already exists; the goal should be its enhancement. For instance, in Cambridge, the Ideas Exchange panel, comprised of 20 paid members, actively shapes the city's development. In Deptford, dialogues with locals and collaborations with startup businesses have culminated in a development that's now internationally recognised.
Impact and Ambition: Rob emphasised the profound effect civic projects can have. He encouraged boldness in ambitions, illustrating that through partnerships involving BIDs, developers, and the local sector, we can establish new public assets without cost to taxpayers. He highlighted, “It may sound ambitious to build a Turner Contemporary but it’s entirely possible,” and underscored its economic benefits: for every £1 spent on Turner, £3 were recirculated into the local economy.
Rethinking Space: Rob emphasised the need for a fresh perspective on space: “The future of buildings should be loose fit, long life.” He pointed to The Depot Mayfield in Manchester as evidence that effective development doesn't necessarily require brand-new structures. He concluded with a potent distinction: “Development is easy, regeneration requires [long-term] partnership.”
Philip Clifford, Senior Advisor at the Local Government Association (LGA), provided insights into the intricate landscape of local governance.
Scope of Local Governance: Philip detailed that local governments cater to over 800 services, grounded in 1,200 legal duties. With certain services being non-statutory, local governments face the task of evaluating which ones to sustain amid funding reductions.
LGA's Mission and Research: The LGA's core objectives encompass the support, promotion, and advancement of local governance. A notable study, titled "Building the 'New Normal'", delves into strategies for rejuvenating high streets post-pandemic. This research indicates a trend of burgeoning business communities, which are seemingly gravitating away from conventional commuter hubs.
Funding Innovations: Philip discussed "Funding Local Improvement", a pioneering initiative employing a Tourism Levy to finance enhancements in local street scenes. The Manchester Accommodation BID stands as a pertinent case study in this context.
Review of Local Enterprise Partnerships: The LGA is actively scrutinising the ramifications of funding withdrawals from Local Enterprise Partnerships (LEPs). This dovetails with their comprehensive review, "Levelling Up Locally", which examines the practical application of the “levelling up” concept.
Future Directions: A current focus of the LGA is to streamline government funding into a condensed set of funds, all directed by a singular, locality-centric budget. Emphasising collaboration, Philip expressed the LGA's keenness to foster ties with BIDs to fortify local partnerships and resilience.
Andy Williams, Emergency Planning and Events Compliance Manager at Savills, provided an update on the Protect Legislation (Martin’s Law). This impacts BIDs doing events but there will also be an expectation that BIDs understand the legislation and can provide best practice advice to its members. Find out more.
Henry and I looking dapper during the break.
Karen Pengelly from Go Epsom delved into the topic of retail crime and the active role that Business Improvement Districts (BIDs) are playing to address it.
The Challenge for BIDs: BIDs, although not included within statutory provisions, are at the forefront of delivering robust security measures and crime reduction services. While they don't operate with base-line agreements, their agility allows them to swiftly respond to the dynamic needs of their business communities. Their adaptability means they divert funds towards safety initiatives, echoing the immediate concerns of their members.
Public Perception: The media's portrayal of shopping as a “dangerous” activity has shaped public perception. The power of perception cannot be underestimated, and Karen emphasised the need to challenge this narrative.
Epsom's Approach: Karen shed light on specific challenges faced in Epsom and their innovative solutions. Their comprehensive strategy encompassed covert security patrols, meticulous intelligence gathering, effective police liaising, timely incident reporting, and fostering a deep understanding of the situation. As a result, they witnessed enhanced community engagement, a surge in radio communication use, and various other commendable outcomes.
The BID Potential: Karen noted that “Passive acceptance is not a default” for BIDs. It's entirely feasible to drive positive change, especially in the absence of support from statutory authorities. Karen emphasised the vast potential BIDs hold in making a marked difference in their communities.
“Coming together is a beginning, staying together is progress, and working together is success.”
Fran Imran, from the Senior Project Management at Bristol City Centre, discussed the importance of partnership working, beginning her talk with the above quote from Henry Ford.
Core Philosophy: For Fran, partnership revolves around a shared mission. Collaborating with aligned entities becomes the foundation for achieving collective goals.
Benefits of Partnership:
Resource Utilisation: Efficient sharing and allocation of resources.
Expertise Diversity: Leveraging a range of expertise from different partners.
Risk Mitigation: Distributing potential risks.
Scale: Executing larger initiatives through combined efforts.
Challenges in Partnership:
Bureaucratic Hurdles: Navigating administrative challenges.
Divergent Goals: Resolving conflicts stemming from differing objectives.
Trust Issues: Addressing concerns about commitment and trustworthiness.
Strategies for Effective Partnerships:
Foster clear communication.
Define roles and responsibilities for each partner.
Build and nurture mutual trust.
Maintain flexibility to adapt.
Start with local initiatives and then scale up.
Bristol's Success Story: Building strong relationships with both the council and police has been crucial for Bristol's progress. This partnership approach has led to many successful initiatives. Fran emphasised the importance of celebrating and promoting these successes as they set a positive precedent. Through these endeavors, the BID has established its position in Bristol. Among Bristol's collaborative achievements are co-funded roles for graffiti removal, a dedicated PCSO, and a street intervention services officer.
Fran concluded with a key takeaway: "As a BID you can locate yourself as a key influencer and a major benefit for the place but communication is the key."
Hannah Wadley, CEO of the Safer Business Network, detailed the activities of her organisation across 53 town centres. She highlighted the pressing issue of theft, with £1bn in losses and 1,000 daily incidents of abuse. A noteworthy initiative, the Safer Business Action Week, has been instrumental in boosting confidence through collective efforts. The emphasis is on transforming this week-long event's success into an everyday routine.
Key insights from the talk:
Information Sharing: A call for efficient sharing of details about frequent offenders, while staying compliant with legal regulations.
Data Presentation: Compiling relevant data and presenting it to the police in a usable format. Often, police officers, who change roles, lack consistent handovers. This gap creates a sense of intimidation when interacting with the business community. The Safer Business Network aims to bridge this disconnect, fostering sustainable relationships and facilitating superior data collection and distribution.
Building Trust: Leveraging their network, the Safer Business Network can swiftly organise meetings with businesses for police briefings, laying the groundwork for mutual trust. An integrated approach to data enables the identification of criminal networks operating across different BID areas. This information can then be structured and presented to the police for actionable insights.
Additional Initiatives: Beyond addressing retail crime, the Safer Business Network champions women's safety. The "Ask For Angela" initiative was recently updated and has successfully trained 16,000 individuals, with a notable impact on their work practices. Feedback indicates that students display a strong preference for venues with such training. Another initiative, "Safe Havens," encourages businesses to act responsibly, offering shelter to those in need.
Hannah concluded by emphasising the need to simplify processes, ensuring the police can operate efficiently and secure convictions with minimal hurdles.
In a panel discussion moderated by Prof. Chris, Yasmin McNamara, UK Security Manager at Tesco, and Clark Dunstan, Divisional Licensing Development Manager at William Hill, shed light on the expectations of national businesses from BIDs.
William Hill's primary interest lies in partnering with BIDs to attract talent into the area, ensuring the betting shop's contribution to the high street's success. Tesco, on the other hand, thoroughly examines BID business plans, particularly valuing initiatives that prioritise safety. A crucial expectation from BIDs is their local expertise, making them a vital contact point for individual Tesco stores. Yasmin emphasised, “Core principles are that a BID should be agile and know the local area so well they are a key contact for Tesco branches in the area.”
Effective communication emerges as a significant theme. Ensuring that local Tesco security heads have a direct line to BIDs is essential. Relevant information and BID contacts are then cascaded to the stores. Yasmin underscored the supportive nature of her office team, who are equipped to facilitate relationships and resolve local concerns.
From William Hill's perspective, as Clark explained, the financial aspect cannot be overlooked. Every cost associated with BIDs is carefully assessed. He stated, “Every penny does get looked at.” He appreciated initiatives like the one from Kingston First, which offers subsidised parking, noting such efforts help in obtaining corporate support.
Chris interjected to highlight that British BIDs regularly share contact details of all associated BIDs with their national partners. Lisa from West Bromwich added that both Tesco and William Hill have been proactive members of their Business Crime Reduction Partnership.
Yasmin expressed a desire for Tesco to be part of the pre-ballot consultation, allowing them to voice their local concerns and contribute to shaping the local plan. Given that Tesco invests £1.3m annually in BIDs, a thorough understanding of BID activities is essential for their teams. Clark emphasised the evolving nature of the national corporations' engagement, noting that while some might lag, many are eager to be “a part of the solution.” In a call to BIDs, he concluded, “Talk to us. We are human and we can help.”
In his concluding remarks, Nick Durstan expressed gratitude to all attendees. He noted that the diverse topics discussed during the meeting truly represented the current priorities of BIDs. The British BIDs team received enthusiastic applause. Nick also emphasised the close relationship between British BIDs and Savills, underscoring its significance to the industry.
That’s all from me, see you next year 🥳
