Business Improvement Districts first began in Toronto, Canada in the late 1960s and have subsequently emerged across the globe coming to England through the Local Government Act 2003 and subsequent regulations in 2004. All BIDs are set up under government legislation 'Part 4 of the Local Government Act 2003 and Statutory Instrument 2004 No. 2443 - Business Improvement Districts Regulations'.

BIDs are independent organisations working in partnership with local authorities and the local business community to develop projects and initiatives additional to those offered by local government. These initiatives are put in place to benefit the trading environment within the boundary of a clearly defined commercial area. Over 100 BIDs have now been established across England and Wales. Sleaford plays a special part in UK BIDs as the first market town BID in the East Midlands.