City economy: 'Edinburgh has more to lose than most cities'

AS THE nation's dire financial plight comes under the spotlight in the wake of the General Election, an assessment of the current strength of the Edinburgh economy could hardly be more timely.

That comes today in the shape of newly compiled statistics which measure the city's performance across a range of vital sectors over the last financial year.

The data contains many reasons for cautious optimism, including year-on-year rises in hotel occupancy rates and airport passenger numbers, which buck wider UK trends.

More new businesses are being registered in the city, and the number of overseas investors who think Edinburgh is a good bet is up.

This makes for heartening reading following the early fears that the Capital might be one of the UK cities worst hit by the recession.

However, there are serious downsides to our current situation, which are highlighted in the data and cannot be ignored.

Unemployment has risen and the number of planning applications – a key barometer of activity in the building industry – has fallen, although there are signs of a gradual easing of problems in both areas.

Perhaps the darkest cloud on the horizon though is the prospect of severe public spending cuts.

The horrendous UK budget deficit must be tackled, of course, and that process cannot be painless for anyone. The fear remains though of the impact that such cuts could have on the Capital's fragile economy.

With such a high concentration of public sector jobs, Edinburgh has more to lose than most UK cities outside of London.

After some turbulent times, the city now appears to be on the right economic road, but it is far from out of the woods yet.

Injudicious cuts which take an unfair and disproportionate toll on the city will put at risk that recovery.

A whiff of justice

IT IS to be hoped that the compensation culture that pervades much of civil "justice" in America never gets a foothold here.

But anyone who has had a whiff of the Seafield Stench will understand why those who face it regularly might want some payback.

The case being brought by a group of residents may not reach the courts or succeed if it gets there, but it shows just how sick of the stench local people justifiably are.