Budget

Income and Expenditure and 5 Year Cash Flow

Income generated from the BID levy is ring-fenced to be invested in the BID area. It is used to protect and enhance the commercial wellbeing of businesses through a programme of projects and services in line with the Business Plan.






Budget figures are indicative based on the anticipated levy income using 2017 rateable values. They assume a 3% annual inflationary increase and 100% levy collection rate. Levy income may fluctuate in relation to occupancy and is subject to the market at the time of the ratings assessment.

Allocations reflect current priorities however these may change causing variances and re-allocations across the five-year term. Any material variations of the budget will be approved by the BID Board. Contingency is based upon 10% of BID levy. Reserves are maintained to manage the BID’s cash flow and can be varied by the BID Board if and when required.

Management and overhead will be maintained beneath the industry benchmark of 20%. We seek to leverage voluntary income, which will help enable more of the members’ contributions to be allocated to work programmes, which directly benefit business and the local area in general.

Operating Agreement

Through an Operating Agreement with the Royal Borough of Kensington and Chelsea, a process will be put in place to monitor the collection of the BID levy over the duration of the five-year tenure.

Within one month of the ballot result, the King’s Road BID and the Council will set up a Monitoring Group. There will be at least two meetings of each group every financial year throughout the BID term. At each meeting the monitoring group will:

  • Review the effectiveness of collection and enforcement of the BID levy
  • Assess the information provided by the King’s Road BID and the Royal Borough of Kensington and Chelsea to each party and make recommendations and/or adjustments

Leveraging additional non-BID levy funding

The BID will seek to grow its number of voluntary members and in particular leverage its activity towards the delivery of additional funding to support ongoing work programmes. This is with particular regard to public funding opportunities, property owners and commercial/corporate partners.

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