Cardiff is entering a pivotal period in its business improvement landscape, with FOR Cardiff’s proposal to increase the Business Improvement District (BID) levy for its next term (2026-2031). While any increase in business contributions inevitably raises questions, Cardiff is not isolated in this regard, with multiple UK cities successfully implementing higher BID levies, in response to rise in service costs and reinvesting in place-making.
This blog outlines what is happening in Cardiff, why the BID levy is increasing and where similar approaches have proven successful in the UK.
What is Happening in Cardiff?
FOR Cardiff has proposed a new BID levy structure for it 2026-2031 term, increasing the rate from 1.06% to 1.6% of a property’s rateable value (RV) to sustain and expand services.
This is due to:
- Rising operational costs.
- Reduced real-term income due to property valuation changes.
- The expansion of BID area to include Cardiff Bay.
- The need to provide inflation protection over FOR Cardiff’s next five-year term.
In addition, FOR Cardiff will raise the rateable value threshold from £25,000 to £30,000. This means properties which have a rateable value below £30,0000 on the 2023 rateable value list, will no longer be liable for the levy, even if they are contributing during the 2021-2026 BID term.
How Does the Cardiff Levy Rate Compare to Other UK City BIDs?
The average levy rate for other UK city BIDs is 1.75%. Therefore, FOR Cardiff’s levy rate of 1.6% for 2026 – 2031 is below the UK average, meaning businesses within the FOR Cardiff BID area will pay less than the national average.
Rateable Values Have Shifted Dramatically Since 2017
FOR Cardiff has calculated its BID levy using the 2017 rating list since it came into effect. For the proposed third term, the BID levy will be updated to reflect the 2023 rating list. However, there are significant differences between the two, with rateable values for retail and hotels having fallen substantially. Applying the 2021-2026 term levy rate to the updated 2023 rating list across the existing BID area would result in a reduction in levy income of more than £69,000.
Why Levy Increases Are Not Unusual in Successful City BIDs
A hallmark of a successful BID is sustained business support, demonstrated through a repeated “yes” vote driven by a clear return on investment, whether tangible or perceived.
Most established BIDs:
- Adjust BID levies in response to inflation.
- Rebalance contributions as property values change.
- Expand geographical coverage over time.
This is the trajectory Cardiff is now following.
Where BID Levy Growth Has Worked in the UK
Bristol
A useful comparison can be found in Bristol, where the city’s BIDs, particularly Bristol City Centre BID, have evolved over successive terms with growing budgets and expanded services.
As costs have risen, levy structures have been maintained or adjusted to ensure continued delivery of core services such as enhanced cleaning, business support, and city centre promotion.
The BID has also broadened its remit to include initiatives around sustainability, safety, and the evening economy, reflecting changing business priorities.
Importantly, continued support in ballots indicates that businesses recognise the value of sustained investment, even as contributions increase over time.
Manchester City Centre BID
Manchester’s BID model has evolved through multiple renewal cycles with expanding remits.
- Increased budgets funded enhanced street cleaning, public realm upgrades, and city marketing.
- Strong alignment with the city’s broader regeneration strategy.
- Businesses continue to support renewals due to tangible improvements in footfall and safety.
Lesson: BIDs thrive when they are embedded in wider city growth strategies.
Birmingham – Colmore BID and City Centre BIDs
Birmingham’s BID structure is often cited as one of the UK’s most effective.
- Multiple BIDs operate across districts.
- Levy income has increased over successive terms.
- Projects include security patrols, lighting improvements, and major public realm investments.
Lesson: Multiple BIDs with rising contributions can coexist when governance is clear and outcomes are visible.
Other Success Stories – Lincoln, Leeds, York, Etc.
Cities such as Lincoln and York show that even outside major UK cities:
- BID renewals often pass with strong majorities (sometimes 80-90%+).
- Gradual levy increases are accepted over time.
- Long-term continuity builds trust and stability.
For example, Lincoln’s BID has operated since 2005 and has continued through multiple renewal cycles, showing sustained business support for ongoing investment.
Lesson: Longevity builds acceptance of incremental levy growth.
What Can Cardiff Learn?
Cardiff’s proposed levy increase is not unusual; it is part of a wider UK pattern where successful BIDs evolve through:
Visible Return on Investment
Businesses support higher levies when they see:
- Cleaner streets.
- Improved safety.
- Stronger events programme.
- Increased visitor numbers.
- Benefits for member employees including training, networking opportunities and discounts via The Card.
Transparent Governance
Cardiff’s BID model, like others, relies on accountability. Levy increases are easier to justify when budgets and outcomes are clearly reported.
Incremental Change
The increase from 1.06% to 1.6% is significant but phased and consultative, mirroring successful BID transitions elsewhere.
Strong Renewal Mandates
Cardiff’s previous ballots have been decisive, with over 90% support in the most recent renewal, an indicator that businesses already perceive value in the model.
To Conclude
Cardiff’s BID levy increase sits firmly within a proven UK pattern. When BIDs deliver visible value, businesses repeatedly vote to sustain and even grow investment.
The experience of cities such as London, Manchester, Birmingham, and Lincoln demonstrates levy increases are not only viable, but they are also often essential to maintaining momentum.