Dundee City Council has approved new permit charges for the use of pavement space by local pubs, cafes and restaurants.
The announcement comes as businesses struggle to cope with rising costs due to the ongoing energy crisis.
The policy, which mean annual charges of £200 for cafes not selling alcohol and £500 for licensed premises, was agreed at Monday’s city development committee
Four amendments, proposed by members of the Labour group, were put forward before the scheme was endorsed.
The council says the new permits will ensure safety and hygiene standards and that the fees will cover administrative and legal costs along with pavement space rent.
The charges are effective from April 1 next year.
Some councillors raised concerns the new charges will be an additional financial burden on local businesses already struggling against ballooning energy bills.
‘Concerns about costs’
West End Councillor and Liberal Democrat group leader Fraser Macpherson said: “We’ve real concerns about the costs. The report gives no indication as to how the fees have actually been calculated..
“And I would be grateful for some detail from the (council) officers as to how they’ve actually calculated the fees that are alluded to in the report.”
Ewan Macnaughton, head of sustainable transport and roads the council answered: “We have undertaken a cost-assessment of the value that’s implicated with the permit scheme…
“It’s a cost-recovery aspect that the calculation’s based off. Based on the existing number of occupation that we have from these premises.”
‘Helped not hindered’
Among requirements proposed were restrictions on outdoor furniture advertising.
Only the name of each local bar or restaurant was to be allowed, not sponsored items that are sometimes provided free of charge by breweries or other producers.
This restriction was removed by one of the Labour group’s amendments.
Putting forward the amendments, Pete Shears, councillor for Broughty Ferry, said: “With the sizeable costs involved in new outdoor hospitality-space permits, we’re proposing this motion (amendment) to help mitigate some of the other costs that businesses may incur.
“In the cost of living crisis, it’s imperative that we assist businesses where we can. Dundee’s hospitality sector is vital to the city’s economy and it needs to be helped not hindered.”
‘Costs rising, incomes decreasing’
Mr Shears explained the costs for a business to add outside seating is already high due to spending on parasols, barriers, seating, and tables.
He said: “For a reasonably-sized, outside hospitality space…it could cost them over £1,000 at a time when costs are rapidly rising and people’s disposable income to spend within these businesses is rapidly decreasing.”
Mr Macpherson added: “I spoke to a business recently who have almost a fivefold increase in their energy costs. It’s a really worrying time, particularly for small businesses.
“I have a concern that the perception out there is that the council could be in a parallel universe, imposing additional financial encumbrance on small businesses in Dundee at a time when they’re faced with so much more.”
‘Costs passed on to customers’
Charlie Malone Scottish Labour councillor for Lochee commented: “These costs can only be passed on to the customer which makes the businesses uncompetitive.
“Or they can come out the labour costs. We all know that when we have crises the first things that tend to be reduced are labour costs.
“The wages and conditions for in the hospitality sector are among the worst in the city.”
Leader of Dundee City Council, SNP Councillor John Alexander, said: “I would simply make the point if you look at one of the figures, for example on unlicensed properties, £200 for 24 chairs, equates to two pence per chair, per day.
“So, I don’t think we’re talking about exorbitant sums here. I absolutely accept the point that any costs are additional but I think this is purely about making sure that we cover the associated cost that’s been detailed in this report.”
Conversation