Princes Street fire: Council wipes £16,000 in business rates for affected Edinburgh shops

Nearly £16,000 in non-domestic rates from shops forced to close during last week’s fire on Princes Street have not been collected.

Six city centre shops were forced shut after the former Debenhams building, under renovation works to become a hotel, caught fire on July 8.

The council has confirmed it is waiving rates for the shops, and as a consequence the Scottish Government will lose £2,000 per day in rates, according to assessor’s data.

Princes Street was cordoned off while firefighters battled a huge blaze, with the city centre road still closed to traffic. | Daniel Artur Woda

The council collects non-domestic rates on behalf of the Scottish Government, which then redistributes them to local authorities.

Some £1,438 per day of the losses come from the Boots on Princes Street near the Debenhams building, which has a value of £525,000.

The other five businesses, including a tailor, two shoe stores, a Timpsons branch and a vape shop, all on Rose Street, make up the remainder of the £1,986-a-day losses.

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The fire began early on the morning of Thursday, July 9, and drew an immense response, with ten appliances present at the height of the blaze. Crews finally left on Friday morning, after more than 29 hours on site.

Firefighters put out the remains of a fire in the former Debenhams building on Princes Street on July 9. | Jeff J Mitchell/Getty Images

The stretch of Princes Street adjacent to the building was reopened for a short time, but the council announced earlier this week that it would be shut into August.

At the time, council leader Jane Meagher said she was ‘disappointed’ about the fire, but public safety had to be a priority.

The closure has had a significant impact on residents, with buses diverted and trams turning short in the West End. Its impact is expected to be amplified as thousands of visitors are set to come to the city during the summer festivals.

Compounding these challenges, a major section of Princes Street, between Frederick Street and South Charlotte Street, will remain closed for the foreseeable future. The former department store sustained significant damage, prompting the council to undertake complex, time-consuming structural assessments aimed at safely preserving the site's heritage.

Rose Street South Lane has also been cordoned off, though officials have actively supported affected traders to ensure all Rose Street businesses were able to reopen over the weekend. Furthermore, the council has lodged a formal request for support with the Scottish Government to help manage the fallout.

To mitigate the transport chaos, extensive diversions are currently in place. Trams are restricted to operating solely between the Airport and Shandwick Place, while numerous central bus routes have been altered.

Addressing these mobility challenges, the council is collaborating with Voi Bikes to expand its city fleet from 800 to 1,000 units by next week's end. This initiative includes additional bicycle parking in the city centre to assist commuters travelling from Leith and Newhaven.

Despite the disruption, major summer events are adapting. The Edinburgh Festival Carnival has been forced to avoid the affected stretch of Princes Street and utilise a new route. Special traffic diversions were also in place to accommodate Saturday’s Scotland versus Fiji rugby match.

Council leader Meagher praised local transport providers for their swift and constructive problem-solving. She reassured residents and visitors that while road closures are essential for public safety, Edinburgh's city centre remains firmly "open for business," with efforts ongoing to find alternative locations for any displaced festival attractions.