Originally published on February 3rd, 2009

It was suggested last week that £1.3 million earmarked to insulate Edinburgh’s economy during the recession is to be cut from the council’s upcoming budget.

Cameron Rose, Conservative Councillor for Southside and Newington, told The Student: “It’s easy to say it is under threat but the truth is the decisions have not been made - at least not made public.”
Business leaders have condemned the move, saying that it is important to invest in the economy during the current economic turmoil.

The Economic Development Committee may lose out as council leaders seek to tighten their belts.

The committee, one of six executive committees that form the City of Edinburgh Council, was seeking funding for several initiatives aimed at steering the city’s economy through the recession.

However, a slowdown in construction has limited revenue from planning fees, and the much derided tram scheme has left vital income from city parking meters in freefall.

Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, told the Edinburgh Evening News: “If there is one part of the council’s budget which needs closest attention right now it is economic development.

“Some of the things that would be affected by this, such as the city’s new tourism promotion unit, are badly needed to get us through this period.”

It now appears that the dedicated tourism bureau that was proposed for the city now may not materialise, and that money aimed at attracting £600 million of new investment to Scotland’s capital will not be made available.

Council leaders have been eager to douse speculation – one council spokesman said: “Councillors will consider and finalise the council’s full budget over the coming weeks.

“When considering and finalising our budget we must take account of the many different – and often competing – factors that will form the basis of our discussions in the coming weeks.”

The council is set to publish the budget for the coming fiscal year on February 12, but Cllr. Rose told The Student their decision to cut the funding may be made official before then.