Rose Street shop is first to refuse to pay business district levy

Published on Friday 13 May 2011 13:24

A ROSE Street clothes store has become the first city premises to be taken to court for refusing to pay Essential Edinburgh's controversial business improvement rates.

The city council is taking legal action against Goodstead on behalf of the business body after the clothing store refused to pay a compulsory levy.

The firm's owners, who moved the shop into the Business Improvement District after the scheme was brought in, claim they have not benefited from its services - and may even have lost business.

Essential Edinburgh was set up in 2008 after companies in the city centre voted in favour of a Business Improvement District, which is financed by a one per cent levy on all business rate-payers in the area.

However, the operation of the BID scheme is up for renewal in 2013 and could become the first in the UK to be rejected.

Award-winning chef and Oloroso owner Tony Singh has campaigned against the levy, which costs his business 2000 per year.

Goodstead partner Graham Blakey, 29, who set up the shop four years ago and moved to Rose Street two years ago from Bread Street in Tollcross, said: "We only realised we'd have to contribute to the BID scheme when we opened and got a bill.

"The amount is not a big value, 500 or 600 per year, it's more the principle. I just don't see where the money goes."

Mr Blakey said he expects to lose business rather than gain it during upcoming events like the Rose Street festival in July because of a drop in shoppers.

He added: "There is going to be a Rose Street carnival, but that generally causes us to lose money because people stay away if there's disruption.

"They don't produce figures to show they are performing, except for one footfall report last year showing that it was down over the last few years.

"I have been advised just to pay the levy to avoid lawyers' costs, which is what I believe Tony Singh did in the end, but I've spoken to him and we are going to get in touch with other business owners who just don't see where this money is going."

In response, Liz McAreavey, interim chief executive of Essential Edinburgh, said: "The Business Improvement District came in through a legal ballot that needed a majority of votes, then it became a statutory obligation to pay the levy.

"That money is spent in a number of ways. We carry out gum-busting on the pavements, while if someone vomits on your doorstep at 7am our environmental officers clean it up before you get to your office.

"We have reduced retail crime by 20 per cent since we started and we also pay for the taxi marshals at night."

"It's unfortunate that Goodstead don't think we are doing as a good job as they think we should, but I'll personally meet with the owners and get their views on this."