Scotland Five Reasons to be Optimistic by Cammy Day


There are far too many reasons to list why Edinburgh’s future is looking bright for business. Here are my top five reasons to remain optimistic.


1. Recent development-driven growth Edinburgh


is Cammy Council Chamber ever changing but


the last decade is notable for rapid transformation. And we’re beginning to reap the rewards.


Since 2014, the tram line has become a firm and successful addition to our transport network which it’s hard to imagine we lived without. The old Meadowbank Stadium has made way for the state-of-the-art sustainable facility we have today. The East End of Princes Street’s once aging and tired St James Centre has been replaced by the sparkling St James Quarter, visited by over 18 million people annually, and recently the Port of Leith Distillery heralded the start of a new chapter for Ocean Terminal.


Iconic historic buildings which we once worried were at risk have been reimagined by developers. On Princes Street, Johnnie Walker has completely transformed the former House of Fraser store, while Uniqlo has breathed new life into the old BHS. Similarly, work is underway to revitalise Edinburgh’s much-loved Jenners building, complementing the transformation of St Andrew Square as a whole. This type of restoration has taken place all over the city, with the redevelopment of the Old Town’s India Buildings into the Virgin Hotel another great success story.


Change can be controversial but when designed right, such development can completely reinvigorate Edinburgh’s city centre streets and buildings, acting as a magnet for footfall and neighbouring investment. In part thanks to developers’ attraction to Edinburgh, only a handful of our thousands of listed buildings are now on the ‘At Risk’ Register, proving regeneration and conservation can work hand in hand.


2. New opportunities being unlocked Market conditions have brought major challenges for developers and for our city, not least as Edinburgh sits at the heart of Scotland’s national housing emergency, yet spades continue to break the ground. There may be less cranes decorating the skyline than we’ve become accustomed to, but investors are continuing to choose Edinburgh, including hotel brand Zedwell which recently shared their luxury hotel ambitions for the former Debenhams on Princes Street.


In the next decade, our eyes will cast to the west where plans for a sustainable new ‘town’, equivalent in size to Linlithgow, will start to take shape. We will see the sustainable transformation of the £1.3 billion Granton Waterfront into a brand-new coastal community, while George Street will become a ‘European Boulevard’ as we pedestrianise areas, making the street more accessible and enjoyable to visit. The Forth Green Freeport initiative will catalyse major investment in the Port of Leith, fostering its emergence as a global hub for the offshore wind industry and continuing to support the creative sector already well-established there. Around 11,000 direct jobs are expected to be created as a result, and we expect around 4,000 of those to be here in Edinburgh, which is major.


The way we enjoy Edinburgh is set to change too. The refurbished King’s Theatre will open its doors, we’ll be able to enjoy international acts at a brand new 8,500-capacity arena at Edinburgh Park, while ambitions for cultural venues like the Leith Theatre and leisure attractions like Lost Shore Surf Resort will be realised. There are many hurdles to get over, but there is no doubt Edinburgh is in an enviable position compared to other parts of the country thanks to investor confidence remaining high and we still have plenty of opportunities to come!


3. Coming soon: a visitor levy for Edinburgh One of the opportunities we hope to grasp sooner rather than later is the introduction of the UK’s first visitor levy. Last winter we bucked national footfall trends and welcomed some of the strongest city centre performances in the UK. This summer, with the August festivals in full swing, Edinburgh feels as buzzing as ever, hot on the heels of the Taylor Swift’s Eras Tour hype.


42


Whilst the undeniable success of our festivals and wider events industry is something to be celebrated, there are inevitable costs too – both in terms of Council resources and disruption –so it’s vital that we get the balance right, particularly if we are to maintain our global reputation as a great place to visit – and as a happy place to live.


That’s why we have long made the case to introduce a visitor levy, a small percentage fee on overnight accommodation, which can then be reinvested in the city. And, with MSPs voting to give us those powers in June, we’re working closely with the sector, VisitScotland and other partners to develop a scheme that we’re aiming to introduce from summer 2026.


Just to give you a feel of the scale and importance of this opportunity, had a 5% levy been in place purely over the weekend of Taylor Swift’s concerts, we would have raised over £600,000 to reinvest in our city’s culture, heritage and infrastructure – to the benefit of our visitors and, crucially, to the people who live here all year round. Now that’s something to look forward to.


4. High employment, highly skilled


News that the UK labour market is continuing to cool is cause for concern, but thankfully it’s not an issue we’re experiencing here. In fact, data from the Office for National Statistics (ONS) reveals that in 2023, the city’s employment rate was higher than across Scotland as a whole. An impressive 82.1% of us were in work last year, which is almost 8% above the national average.


We know of course that availability of skills remains a top issue for businesses, with research by the Institute of Directors in May suggesting almost half (45%) of business leaders feel skills and labour shortages are having a negative impact on their organisation. It’s even more positive then that Edinburgh has one of the most skilled workforces in the country, with this talent pool cited as a strong pull for new entrepreneurship and innovation.


We’re also seeing productivity rates and average earnings remain higher than any other UK city outside London, while we continue to act as a magnet for foreign direct investment. Among the recent new arrivals attracted to Edinburgh from around the world are Canadian renewable energy developer Boralex; American fintech firm the Abacus Group; Norwegian subsea services specialist Argeo; Adidas; and Spanish offshore wind developer BlueFloat Energy, all bringing new jobs and capabilities to the capital. Considering the challenges continued to be faced by employers due to increasing costs, this progress is well worth acknowledging.


5. Good progress on fair pay Of course, there is no point in celebrating the city’s employment record if much of the work on offer isn’t secure and fair – and our commitment to the real Living Wage remains as strong as ever. Rising inflation and energy prices in recent years has exacerbated in-work poverty by reducing real incomes and cutting living standards for low-paid workers, and one of the best ways we can tackle this is through fairer pay.


So, I’m pleased to say Edinburgh has experienced a record-breaking couple of years for real Living Wage sign ups despite difficult business conditions for employers. There are now 720 accredited Living Wage employers in the city and it feels like we’re witnessing a real movement, with major employers like Edinburgh Trams and Lothian Buses, charities like the Edinburgh Dog and Cat Home and independent businesses like the Edinburgh Bookshop and Alien Rock all taking the pledge.


I was encouraged by the commitments in the King’s Speech that the UK Government will look to scrap zero hours contracts in one of several poverty- combatting policies, something our work looking at the city’s gig economy has highlighted as a barrier to financial security, particularly for young people.


For our part, we continue to work with the Festivals to focus on improving working practices for seasonal workers and the introduction of the Fair Fringe and Hospitality Charter and Edinburgh Festivals Workers’ Welfare Commitment in 2018 were great steps forward. Following the adoption of the charter we crafted with the Forth Green Freeport to ensure the many jobs the Green Freeport creates are of a good quality with good working practices, we’re now developing a Fair Work Charter for the city as a whole.


Everyone deserves a fair day’s pay for a fair day’s work. COMMERCIAL PROPERTY MONTHLY 2024


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60