Edinburgh transport chiefs eye 100% rate cut for traders

BELEAGUERED traders on Leith Walk are in line for more financial support after city councillors acknowledged that tram works are threatening their livelihoods.

Council leader Jenny Dawe has ordered officials to investigate the possibility of offering 100 per cent rate rebates to some businesses to boost the current deal, which only provides average compensation of 20 per cent.

Meanwhile, councillors have admitted that last week's announcement of a £10 million hike in the cost of the controversial tram project – up to £508m – may "severely impact" plans for an extension from Roseburn to Granton.

Currency fluctuations and "protracted" contract negotiations with the firms building the trams and associated infrastructure have eaten into the funding available for the spur – known as 1b.

At a full council meeting yesterday, the SNP group successfully passed a motion that warned of the financial shortfall, and also said the local authority should "endeavour to satisfy" traders who have pleaded for more help.

Deputy council leader Steve Cardownie said: "Some family firms (on Leith Walk) have said they face going bankrupt, and everyone here is very concerned about that. We have asked the director of finance to see if we can help alleviate this."

Cllr Dawe said she acknowledged the hardship traders were facing, and said she was aware that Labour MSP Malcolm Chisholm has appealed to Finance Secretary John Swinney to help provide 100 per cent rates relief.

"We know this is difficult to do, and a very strong case has to be made, but I have also asked our director of finance to investigate if this could be possible in individual cases," Cllr Dawe said.

Earlier this week, over 150 traders from Leith Walk and Constitution Street confronted tram firm TIE with tales of incomes slashed by up to 90 per cent.

TIE is currently offering businesses with a rateable value of under £28,000 a 20 per cent rebate with a support package of up to £4000, which they have been able to extend to off-route side streets due to a lower-than-expected uptake.

However, many traders at the meeting said this fell far short and suggested further measures, such as a freeze in rates or a low-interest loan to tide businesses over.

Nigel Duncan, vice-chairman of Edinburgh's Federation of Small Businesses, said today: "Anything that will relieve this disaster zone will be welcomed.

This is a very positive step forward, and we applaud Jenny Dawe for it."

In March, TIE launched a project team to investigate ways to pay for line 1b, and said it was "optimistic" it would go ahead.

But Cllr Cardownie said today: "We now have to find more money from elsewhere, because the budget is £10m greater."

TIE has said it is still committed to the spur.