The credit crunch may be a global financial crisis, but Edinburgh City Council believes it can take steps to alleviate some of the pressure locally. Edinburgh, as one of Europe's main financial centres, has already seen how rapidly the damage can be done
in this febrile financial climate with the sudden merger of HBOS by Lloyds and the recent rollercoaster ride in the fortunes of the Royal Bank of Scotland. The property market, which is at the root of much of the recent disaster, is holding up better in Edinburgh than other parts of Britain but it is still down around 7% since last year.
An Economic Resilience Action Plan being considered today at Council outlines a range of proactive measures to help Edinburgh and the wider region to weather the credit crunch.
The plan proposes measures towards:
- securing increased government investment for affordable housing in the City:
- acquiring 'unsellable' homes from developers for a range of rent levels (social, market and 'mid' rent)
- developing a public sector-backed 'home loans' scheme to help first-time buyers and those who need to move
- stimulating £100M new investment in Edinburgh, with an innovation team to promote diversity away from existing key sectors
- more support for businesses looking to expand existing operations or relocate to Edinburgh
- expanding the existing, and successful, range of programmes to get people back to work through training.
Councillor Jenny Dawe, Leader of the Council, said: "This is a robust response to the new world we're in and I'm sure our proposals will receive cross-party support in the interests of Edinburgh. Nowhere is immune but our city has excellent strengths which put us in a good position."
Dawe says that there are reasons to be cheerful. "We are stepping up our efforts, but there is still much cause for long-term optimism. We are diversifying our economy, so that we are not reliant on financial services - with science and technology a particular strength - and we have a workforce which is one of the most highly educated in the UK."
"Recent weeks have seen major planning applications submitted for the redevelopment of the St James Centre, the Cowgate fire site and exciting developments on Princes Street. Major projects at Haymarket, St Andrew Square and Caltongate also remain on track, and are part of an estimated £6billion worth of investment going on in Edinburgh currently."
Edinburgh retains its popularity as a tourist destination, and its service industry should be aided by recent weakness in sterling. At the same time, it rated highly as a business location in a recent
Cushman and Wakefield survey of UK business leaders, and FDI magazine earlier this year gave the city the title of ‘Top Small
European City' for Inward Investment.
Crunching the numbers
Leading figures in the city region will gather at a conference on 5 November to discuss the economic situation and solutions.
New benchmarks and other indicators are being developed with public and private sector partners to help measure the region's economic ‘vital signs' and influence future actions.
Councillor Dawe said: "This administration has been active in encouraging investment in Edinburgh. We increased funding in economic development and filled the long-standing vacancy for a head of that section. We have a new team coming together to promote Edinburgh as a destination for talent, tourism and trade. This will complement the work already taking place at key world events to showcase Edinburgh's opportunities."