Edinburgh trams: compensation cash for 200 more firms

Published on Wednesday 9 April 2008 17:15

THE compensation scheme for firms hit by the city's tram works was today extended to include around 200 more businesses.

A review of the Small Business Support Scheme has been agreed by TIE, the city council and the Edinburgh Chamber of Commerce.

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Under the old rules businesses on side streets along the tram route were unable to apply for support.

But the changes announced today mean compensation is now available to businesses within 100 metres of the utility works or the end of the street, if less than 100 metres. Businesses whose postal address is for the street immediately next to the works, such as Stafford Street, Jane Street and Brunswick Street, are also eligible.

This will increase the number of businesses who are eligible to apply by approximately 200.

The 2m scheme was agreed in October 2006 by TIE, the city council and the Edinburgh Chamber of Commerce.

The scheme supports businesses by providing a one-off payment of 3000 or 4000 and providing a reduction in business rates of 20 per cent or more to eligible businesses.

Willie Gallagher, executive chairman of TIE, said: "It was always the intention to review this scheme with our partners.

"Following the successful distribution of over 500,000 on Leith Walk, I believe that these changes, approved by the Tram Project Board and the City of Edinburgh Council this morning, will improve the already successful small business scheme.

"By extending the scope of the assistance to 200 businesses and boosting the Open for Business initiative, we are offering Edinburgh traders unprecedented levels of support when compared to other tram projects.

"The objectives of TIE and its partners have been clear from the outset - to assist as many businesses as possible. This scheme does exactly that.

"Any changes to the integrity of this scheme must be based on sound rationale. These changes reflect our experience of the situation on the streets and are most welcome.

"Alongside our business partners we wish to talk positively about the business community in Edinburgh."

Cllr Tom Buchanan, the city's convener of economic development, said: "Trams are the biggest ever construction project the city has seen and we recognise that the process will be tough for some businesses. In the meantime there is a unique package of support on offer.

"We have listened to the requests from businesses and I am pleased that more will now be eligible for funds from the Small Business Support Scheme.

"So far over 500,000 has been given out to affected traders. We are also running a marketing campaign to ensure we remind visitors and shoppers of all the many attractions of the city."