Cash-back lifeline for shops in licence hike

Published on Thursday 15 May 2008 10:27

TRADERS hit with inflation-busting price rises for outdoor seating areas are in line to get their money back – but only if they are affected by major roadworks.

The U-turn comes in the wake of anger over a new charging system, which has led to up to eight-fold price increases.

The Evening News revealed last week that independent traders are struggling to pay for outdoor tables and chairs, with licences soaring from under 200 to as much as 1600.

The city council's economic development leader, Tom Buchanan, has now told officials to look at reimbursing restaurant and pub owners who are also coping with the tram works on Leith Walk and Constitution Street.

But compensation could also be offered to traders disrupted by the tram project in the West End, as well as upheaval from the redevelopment of the Grassmarket.

If the changes get the go-ahead, it is likely businesses will only pay the previous year's rate.

The initiative came as a result of comments from traders at a Federation of Small Businesses meeting about trams attended by the city council and TIE.

And today it was "unequivocally" welcomed by the Federation of Small Businesses.

Vice-chairman of the Edinburgh branch, Nigel Duncan, said: "This is a step in the right direction. We are disappointed that the rise was introduced in the first place, but it's right that traders get some relief."

Tony Crolla, who runs Vittoria restaurant on Leith Walk, added: "This is a very good idea.

"The footfall here is non-existent, and we really need the tram works finished. A lot of small traders could just disappear otherwise. So any compensation from the council is needed."

The new licensing system replaces a confusing set-up based on the time taken to assess an application. Now, traders are charged a fixed rate for the amount of outdoor space they use.

Restaurateurs have attacked the local authority for wanting to encourage a continental-style atmosphere in the city, while at the same time penalising businesses.

Campbell Barrie, owner of the Two Thin Laddies cafe in Tollcross, paid 110 last year for a six-month licence, but faces a charge of 780 this year.

He said: "We welcome the news that businesses disrupted by the tram works are likely to be compensated by the council.

"Perhaps it indicates that some of those in power are beginning to acknowledge how difficult it is for businesses to stay afloat in the current climate.

"Unfortunately, we've had no such encouragement concerning our outside permit."

The council says the price hike is a response to the huge demand for outdoor drinking and dining in the wake of the smoking ban, which has led to higher administration and enforcement costs.