A NEW hardship fund for traders worst hit by the tram works is set to be approved by council chiefs.
The scheme will see business rates waived for small shops which can prove their turnover has dropped by 25 per cent more than the average drop-off among businesses along the tram route.
The move comes after finance Secretary John Swinney last wee
k confirmed the Scottish Government would meet 75 per cent of the cost of such a scheme, with the council picking up the rest.
Shopkeepers along the tram route have complained their takings are being badly hit by roadworks, with traders in Leith Walk and Constitution Street claiming they are losing up to 90 per cent of their income.
It is thought the majority of these traders will be entitled to apply to the new scheme.
Currently, compensation packages of up to £4000 are available to some traders from tram firm TIE and a 20 per cent across-the-board reduction in rateable values has been agreed for most shops on the tram route.
The hardship fund, which will go to a full council meeting next week for approval, has today been welcomed by business leaders.
Graham Russell, chairman of the Federation of Small Businesses Edinburgh, said: "This is marvellous news, this is an issue that we have been pushing on for several months with the council and I am delighted they have seen sense.
"It will go some way to balance out us being let down by the rates assessor not budging on his 20 per cent and now we can hopefully move on.
"I think the cross-party support this issue has received from the Scottish Parliament has helped."
The hardship relief scheme will only be awarded where reduction in turnover is equal or more than the average downturn across the city. If the downturn is 25 per cent more than the average, the full rates relief will be awarded. For less than 25 per cent, up to 50 per cent will be given.
Officials are currently carrying out research which will determine the average effect on turnover caused by the tram works. The scheme will also only be open to shops with a rateable value up to £28,000 within 100 metres of the tram works.
The rates issue was raised in the Scottish Parliament last week by Edinburgh North and Leith Labour MSP Malcolm Chisholm, who highlighted the "severe hardship" being suffered by traders.
He said: "I am glad that the council has responded to the points that others and I have been making on this issue, and it follows on well from John Swinney's commitment last week."
Donald McGougan, the council's director of finance, said it was difficult to accurately forecast the likely cost of the new scheme at this stage.
He added: "There is clearly no 'one size fits all' solution to the problems being encountered by traders. But the scheme should apply only to businesses affected by the tram construction project and is designed to provide relief quickly to those small businesses worst affected."
