The privatisation of public space? The American experience of business improvement districts and their relationship to local governance

Legislation is currently in progress to enable Local Authorities to set up Business Improvement Districts (BIDs). These evolved in the United States in the 1980s and 1990s as a response to urban decline and decreasing levels of government funding. They are voluntary associations of local businesses which volunteer to levy a 'tax' upon themselves. This fund is used to improve the local area and acts as a supplement to the money already spent by the public sector - most commonly funds raised are spent on enhanced security and street furniture. Although often successful in regenerating and improving city centres, concerns have been raised by some community groups that there has been too much expansion by private sector organisations into what should be the responsibility of elected local government.