BUSINESSES are facing council rent hikes of up to 80 per cent, prompting fears of job losses.
A council review of rents at Peffer Business Centre in Craigmillar has prompted the increases, which are set to be imposed from the end of October.
Colin Cairns, who operates his garage out of two units at the North Peffer Place site, has been wor
st hit by the increase.
After 17 years at the same spot, he is now facing a 78.6 per cent rent rise, from £10,222 to £17,860 a year, and says he may be forced to lay off one of his three mechanics.
Mr Cairns said: "It's just a massive increase in one day. I don't think we can cope with that. It would mean laying someone off.
"I wouldn't have thought the council could turn round and say 'we've not increased our rents in seven years so we are going to do it all in one day'. It's a particularly numb feeling at the moment. It's almost a position of being bullied."
Mr Cairns has called on the council to phase in the rent rise.
He added: "If it was phased in over, say, three years we could look at other ways of absorbing the cost."
Peter Donaldson, who runs joinery firm Donaldson Woodwork, said the £200 hike on his unit came completely out of the blue.
Mr Donaldson said: "We have been here since 2002 and our rents haven't increased in that time. We expect gradual increases but it has almost doubled, from £288 to £488 a month.
"It's a lot of money, especially for a small business, and especially in the current climate. It's not as if business is booming and we're not going to notice it.
"A lot of people won't be able to afford that. I don't know what to do."
The letter issued to tenants also indicated changes would be made to the lease, and offered the option of quitting the properties.
Mr Donaldson said: "Before, the council had responsibility for maintaining the outside of the building. Now we are having to do this. They're upping our rent and making us do all that. It does seem a bit unfair."
Another businessman, who asked not to be named, said: "It is a big increase. It's a bit of a shock. Everyone is in the same situation but I think we will just have to bite the bullet."
Edinburgh City Council insisted the increases were justified.
Councillor Gordon Mackenzie, finance and resources convener, said: "The council endeavours to support small businesses wherever possible.
"Rent reviews are based on what a property could achieve in rent if it was put on the open market at the time of a review.
"Based on the evidence from new open market lettings in the Peffer Business Centre in April 2008, we have subsequently proposed rents in line with current market conditions.
"If any business can provide evidence to support a lower market rent, then we would be happy to consider that information."
The full article contains 517 words and appears in Edinburgh Evening News newspaper.
