Pubs fear extra round of costs will push them over the limit

A SCHEME that would see businesses pay additional rates to fund better public services will be too much of a burden on hard-pressed bars and restaurants, according to pub leaders.

All businesses between Princes Street and George Street are currently voting on whether they want a business improvement district scheme (BID), which would see them pay an additional one per cent levy to create a £1 million spending pot.

But the Scottish Beer and Pub Association (SBPA) said its pubs have already been hit by a series of additional charges and cannot afford to pay more.

Patrick Browne, the SBPA's chief executive, said: "We are happy to support the BID generally when there are tangible benefits to our members.

"But in Scotland, and in Edinburgh in particular, there are so many other things happening. Licence fees have increased quite steeply, at the same time as the BID proposal. We are also waiting for the Scottish Government's 'polluter pays' legislation in June that could be costly for our members.

"Lots of licensed traders are just scratching their heads asking how they'll afford it. The BID could be just another expense for them."

Under the recent licensing regulations, a firm with a rateable value of between £70,000 and £140,000 would pay £1700 for an initial licence application and up to £700 for its annual fee.

Under the BID, they would pay an additional annual levy of between £700 and £1400.

The proposals would see the money, which amounts to just under £1m a year, being spent on a range of areas including "welcoming wardens" to help visitors to the city centre, advertising and marketing of the area, teams to tackle cleanliness issues, parking promotions and events.

A total of 570 businesses will be eligible to vote in the BID ballot, which will run until May 23. The amount of people that have voted has already passed the compulsory 25 per cent mark that means it will be statutory. But it is estimated that as many as two thirds of firms have yet to vote.

Edinburgh City Centre Management Company, the firm charged with setting up the BID, to be called Essential Edinburgh, said that three of its main supporters are among the biggest figures in the licensed trade.

David Withers of Montpelier Group and Saltire Taverns managing director Tony McGrath have both come out in support.

Abbotsford and Guildford bar owner David Stewart is also an adviser for Essential Edinburgh.

A spokesman for Essential Edinburgh said: "The BID is there to encourage people to come into the city centre and help it regenerate as a place that people want to spend money, to the benefit of all businesses."