Jubilant traders force U-turn over tram disruption payout

TRADERS have forced tram chiefs into a U-turn over compensation for disruption caused by roadworks for the scheme.

Previously, shops, bars and restaurants along the tram route which opened after April 2006 were not eligible for the £4000 payouts.

The cut-off point – agreed by the council and Edinburgh's Chamber of Commerce – was set at the date the £498 million trams scheme won parliamentary approval. But angry traders, led by the Federation of Small Business, argued this was unfair on newcomers and that the trams were only given the final go-ahead last year.

Now the local authority and tram firm TIE have agreed a deal to move the cut-off date forward to February 2008 – a change of heart which has delighted business groups and politicians alike.

Councillor Tom Buchanan, the city's economic development leader, said: "We want to be a council known for being fair and considerate to all businesses, so we have decided to widen the dates.

"Businesses open before February 1 will now be eligible to apply and this date is the final cut-off point. I am grateful to colleagues within TIE for being understanding in our desire to make these changes."

All businesses affected by the tram roadworks – which are currently ongoing on Leith Walk – are also eligible for an average 20 per cent reduction in their business rates. TIE also has a separate "top-up" fund for firms suffering severe financial problems.

Graham Russell, chairman of the FSB Edinburgh branch, said: "I am delighted – this U-turn by TIE is a total victory for the FSB.

"The cut-off date was completely unfair and I was disappointed that other business groups in the city could not see this.

"We must acknowledge the role of Tom Buchanan in this. He has pushed it along and we have now finally reached a sensible compromise."

Graham Bell, spokesman for the Edinburgh Chamber of Commerce, said: "We know the three different schemes do not reflect the total cost of disruption, but TIE and the council always said they would be willing to change things as we went along.

"This is reflected in what has been agreed, and I think the new date will enable TIE to help the few people who are affected by this."

It was revealed this week that Shandwick Place is to close for five months from next month. All westbound traffic will be diverted up Lothian Road and on to the West Approach Road.

Cars and buses heading east from Haymarket will be re-routed along Melville Street, and then on to George Street or Queen Street.

Roadworks will also take place on Princes Street – which will be reduced to one lane in each direction – and on St Andrew Square.

City leader Jenny Dawe said: "Trams will be a huge asset to the city, but we recognise that there will be some short-term pain.

"That is why so much effort is being spent on initiatives to support businesses and the city through the construction process.

"Widening the eligibility dates for the business support scheme is another way of showing that we are listening, and that we care about businesses both large and small."