New £500,000 fund to support creation of business improvement districts

The £500,000 loan fund scheme will be run by industry body British BIDs and will offer loans of up to £50,000 to communities and business groups with the potential to successfully establish a new BID.

Lewis said in a statement that BIDs are a "tried and tested" catalyst used in town centres across the world to raise funds for improvements to local trade areas. There are currently over 160 BIDs across the UK.

Mary Portas outlined the potential of BIDs to support town centre growth in her High Street review. A number of Portas Pilots, including Bedford, Loughborough, Bedminster and Lowestoft are currently testing the role of BIDs in rejuvenating their high streets.

"Local communities and local businesses know what works best in their area and BIDs help them to successfully raise the cash they need to re-energise their high street. Having experts like British BIDs manage our £500,000 loan fund will mean the right communities will be able to take advantage of this new support," Lewis said.

"The BID model now has a proven track record in delivering improved management and leadership and, with over 160 business improvement districts currently in operation nationwide, has made a significant contribution to the wider economic performance of many locations," said British BIDs chief executive Julie Grail.

"As the industry grows and becomes ever more complex, the concept and need for a loan fund, in order to facilitate the successful growth of quality business improvement districts in England is well understood," she added.