BID scheme planned for Manchester’s retail core

MANCHESTER’S city centre management company, Cityco, is planning to introduce a Business Improvement District (BID) into the city centre.

The Heart of Manchester Business Improvement District scheme, which would run for five years, would levy a supplementary rate on businesses above a certain size. This would raise £1m a year for a series of events, marketing programmes and other initiatives aimed at attracting more shoppers into the centre.

A report due before Manchester City Council’s executive next week states that the levy would only impact businesses with a rateable value above £50,000 a year.

It estimates that around 380 businesses stretching from King St to Manchester Arndale would be covered under the district. These would be petitioned and would have to vote in favour of a BID being introduced.

If approved, the BID could be introduced in April 2013 and would last for five years.

The bid has several aims, including an increase in the number of high net-worth shoppers in the city’s retail core and to increase footfall in the evenings. It is also aimed at developing ideas to encourage repeat visits.

The report makes clear that the services which would paid for by the BID levy would not replace existing ones offered by the council but would supplement them.

Businesses within Manchester’s Arndale would pay an additional 1% on top of their existing business rates, while those outside the centre would pay 1.25% and the BID levy would be capped so no business pays more than £25,000.

The area covered by the BID includes part of Deansgate, Piccadilly, Market St, King St, Corporation St, St Ann’s Square, Spring Gardens and Fountain St, among others.

Cityco proposes spending around half of the £1m annual levy on events and marketing, £275,000 on operations and hosting teams, £30,000 on research, £80,000 on salaries, £75,000 on admin and £30,000 for contingency payments.

The Heart of Manchester Business Improvement District’s operations would be run by a new, not-for-profit company.

CityCo chief executive Vaughan Allen said: “This proposal came out of discussions we had with retailers about how best to maintain Manchester city centre’s leading position as a retail destination.

“If supported by the city council’s executive, it will then be entirely up to the retailers located in the designated zone to decide whether they wish a Business Improvement District (BID) to be created.”