Traders on the throughfare said they had lost nearly one-third of their customers during engineering work to lay tram tracks between February and November last year, but have faced a protracted battle with the Lothians rates assessor over whether their business contributions should be reduced.
The Lands Valuation Appeal Court yesterday rejected an appeal by the assessor that would have seen businesses pay full rates for the duration of the work. But the court pegged the reduction at 20% of the full rate, less than the 30% asked for.
The ruling, which was reckoned to be worth several million pounds in lost rates, was welcomed by Edinburgh Chamber of Commerce.
Graham Birse, deputy chief executive, said: “This is a complete vindication of the position the chamber has held all along, that businesses should be helped to stay buoyant during a very difficult time.
“The rates assessor had, prior to the commencement of construction work, said that all business on the route would receive a full 20% reduction. He has reneged on that a number of times for various reasons.”
Despite a month-long delay in starting track laying on Princes Street last February, the street is one of the few areas of the 11.5-mile tram route where tracks have been successfully laid. Significant portions of the project are now in doubt amid a cost overrun and ongoing dispute between the council-owned company overseeing the project and German construction company Bilfinger Berger.
Businesses on Princes Street applied to the Lothian Valuation Appeal Committee to pay lower rates in business rates and were granted a 20% reduction.
However, that was challenged by the Assessor for Lothian, which sets council tax and business rates in the area and who applied to have the reduction set at zero.
The claim was yesterday rejected by appeal judges at the Court of Session, who found that businesses including the Alliance & Leicester, House of Fraser and Royal Bank of Scotland should be entitled to a 20% reduction.
Peter Muir, director of ratings at chartered surveyors Colliers International, said: “I think it’s a fair result for the rate payers in Princes Street who now have parity with other businesses elsewhere on the tram route.
It’s just unfortunate that they’ve had to go to the Court of Session to get this ruling at further cost.”
A City of Edinburgh Council spokesman declined to comment on the ruling.
