Shops have that sinking feeling as Old Town's cobbles sag

The subsidence means St Mary's Street faces being shut for repairs after an earlier closure was blamed for putting shops out of business.

The council has tried to point the finger of blame at Scottish Water, saying leaks from ongoing work has caused the problem.

But the water company said it had not carried out repairs in the area for several years and found the pipes in good working order during a recent "MoT" check.

Zoya Beaton, who owns The Russian Shop on the street, said she first noticed the road beginning to "sink" a few months ago.

She said: "It's the same on the Royal Mile, the road just suddenly started to dip. It wasn't like this last year, it's totally uneven."

She said any closure of the road to carry out repairs would be a "disaster" for local shops, with many closing down for good the last time the road was shut off to traffic.

Yasmina Ely, owner of nearby Kleen Cleaners, added: "They closed the street off a few months ago and I noticed afterwards that it was very damaged.

"It affects us terribly when they close the street off and we don't get any compensation for our loss of customers."

Work to repair pavements in St Mary's Street in 2007 was halted in time for Christmas after shopkeepers claimed it was ruining their businesses. Traders had reacted furiously when workers began resurfacing pavements just months after work to improve the opposite side of the street.

The small businesses have also suffered from diversions brought in to repair ageing gas mains in Holyrood Road and mend the broken road surface in the Canongate in recent years.

A council spokesman said: "We are aware of this issue at St Mary's Street and we shall be working closely with utility companies to ensure that work is co-ordinated and managed effectively to try and minimise disruption."

Bill Elliot, Scottish Water's regional communities manager for Edinburgh, added: "Our network has recently been inspected thoroughly in the area around the Royal Mile and was found to be in good working order. However, our teams will carry out further investigations and we will liaise with Edinburgh City Council."

Last year, it emerged Edinburgh faces 86 million worth of repairs to the city's crumbling roads and pavements after decades of neglect.