Edinburgh Fire Leads to Nearly £16k Business Rates Loss 2026

Key Points

• Nearly £16,000 in non-domestic rates from Edinburgh city-centre shops forced to close after last week’s Princes Street fire have not been collected.
• Six businesses were shut after a blaze at the former Debenhams building on Princes Street, which is being converted into a hotel.
• The fire started early on Thursday 9 July and required around ten fire appliances at its peak, with crews remaining on scene for more than 29 hours.
• The City of Edinburgh Council has confirmed it is waiving non-domestic rates for affected shops while they remain unable to trade.
• As a result, the Scottish Government is expected to lose about £2,000 per day in business rates income, according to figures from the independent assessor.
• Around £1,438 per day of the uncollected rates is linked to the nearby Boots store on Princes Street, assessed at a rateable value of £525,000.
• The remaining losses, adding up to approximately £1,986 per day, are associated with five smaller businesses on Rose Street: a tailor, two shoe shops, a Timpsons branch and a vape shop.
• A stretch of Princes Street next to the former Debenhams site was initially reopened but has since been closed again and is now expected to remain shut into August.
• The continued road and tram disruption has affected residents and commuters, with buses diverted and trams turning short at the West End.
• Council leader Jane Meagher has described being “disappointed” by the incident but stressed that public safety must come first.
• The closures and transport changes are expected to have a wider economic impact as thousands of visitors arrive in Edinburgh for the summer festivals in 2026.

Edinburgh Council (Edinburgh Daily) July 17, 2026 – Nearly £16,000 in non-domestic rates from shops forced to close following last week’s fire at the former Debenhams building on uk/local/princes-street/">Princes Street are not being collected, after the City of Edinburgh Council confirmed it will waive business rates for the six affected premises while disruption continues.

How much in non-domestic rates has been lost following the Princes Street fire?

According to figures drawn from the assessor’s data, around £2,000 per day in non-domestic rates that would ordinarily flow to the Scottish Government from this section of Edinburgh’s city centre are currently not being collected. The total uncollected amount has already approached £16,000, reflecting several days of closures for six businesses located on or near Princes Street. The bulk of this income – £1,438 per day – would usually come from the large Boots store on Princes Street, which carries a rateable value of £525,000. The remaining daily shortfall comes from five smaller businesses on Rose Street, including a tailor shop, two shoe retailers, a Timpsons outlet and a vape shop. These figures illustrate how even a relatively contained incident in a single building can quickly translate into a measurable loss of public revenue.

Why were six shops forced to close after the former Debenhams building caught fire?

The six businesses were shut as a direct consequence of a significant fire that broke out at the former Debenhams department store on Princes Street, which is currently undergoing renovation works to be converted into a hotel. The blaze began in the early hours of Thursday 9 July and prompted a large-scale response from the Scottish Fire and Rescue Service, with ten fire appliances reported at the scene at the height of the incident. Crews remained on site for more than 29 hours, finally standing down on Friday morning after ensuring the fire was fully extinguished and the structure made safe. In the immediate aftermath, adjoining and nearby premises, including the Boots store and the Rose Street businesses, were forced to close due to safety concerns, restricted access and the need to maintain a secure cordon. The closures were therefore not a direct result of fire damage inside those shops, but rather a precautionary measure linked to the scale and location of the blaze.

How is the City of Edinburgh Council handling business rates for the affected premises?

The City of Edinburgh Council has confirmed that it is waiving non-domestic rates for the shops that have been forced to close because of the fire and its aftermath. Under Scotland’s business rates system, the council’s role is to bill and collect non-domestic rates on behalf of the Scottish Government, which then redistributes the revenue across local authorities. By waiving rates for these six premises during the period in which they cannot trade, the council is effectively foregoing income that would ordinarily be passed on to the Scottish Government. This approach is intended to provide immediate financial relief to the affected businesses, recognising that they are unable to generate normal levels of revenue while access is restricted and footfall is reduced. At the same time, it shifts a portion of the financial impact of the incident onto the wider public finances rather than individual traders.

How are the daily losses in rates income broken down between Boots and the Rose Street businesses?

Based on the assessor’s rateable values, the daily loss in business rates income from the area totals around £1,986, the vast majority of which relates to the large Boots branch on Princes Street. That store alone accounts for approximately £1,438 per day in rates that are not currently being collected, reflecting its high rateable value of £525,000, which is typical for a prominent national retailer in a prime city-centre location. The remaining £548 or so per day comes from the cluster of smaller businesses on Rose Street: a tailor, two shoe shops, a Timpsons branch and a vape retailer. Individually, those shops contribute far less in daily rates than the Boots premises, but together they still represent a notable portion of the total uncollected sum. This breakdown highlights how major chain outlets can dominate local tax bases, while smaller independent and service businesses collectively add significant, if more modest, amounts.

What has the council said about the decision to keep part of Princes Street closed into August?

The section of Princes Street adjacent to the former Debenhams building was briefly reopened after emergency crews left the scene, but the council later announced that it would have to be shut again and is now expected to remain closed into August. In comments made at the time of this announcement, council leader Jane Meagher said she was “disappointed” about the fire and the resulting disruption, but emphasised that public safety must remain the overriding priority. Her remarks underline the council’s position that maintaining a secure environment around a damaged building under active renovation is more important than immediately restoring normal traffic and trading patterns. The extended closure suggests that further structural assessments or works are required before the area can safely reopen to full pedestrian and vehicle access. While the decision is likely to frustrate some businesses and commuters, the council’s stance is framed in terms of legal and safety obligations around potentially unstable structures.

How has the fire and subsequent closure affected transport and local movement in central Edinburgh?

The closure of part of Princes Street has had a notable impact on local transport, affecting both everyday residents and visitors. Bus services that would usually pass along the affected stretch have been diverted, potentially adding time to journeys and changing boarding points for passengers. Trams have also been affected, with services turning short at the West End rather than running along the full central route, limiting direct tram access to some parts of the city centre. These changes add an extra layer of disruption on top of the direct impact on traders, as shoppers, workers and tourists must adapt to altered routes and potentially longer walking distances. In a city that relies heavily on integrated bus and tram links, particularly for access to core shopping streets like Princes Street and adjacent Rose Street, such changes can quickly affect patterns of movement and commercial activity.

Why is the timing of the closures particularly significant for Edinburgh’s summer festivals?

The impact of the closures and transport diversions is expected to intensify as Edinburgh moves into its peak summer festival season in 2026, when thousands of visitors arrive in the city. The festivals draw large crowds to the city centre, often concentrating around key thoroughfares and commercial areas that include or connect with Princes Street. Any restriction on access or reduction in transport capacity during this period can have knock-on consequences for crowd management, venue access and the performance of nearby businesses. Shops that rely on passing festival trade, such as those on Princes Street and Rose Street, could miss out on peak-season income if closures or safety cordons remain in place. At the same time, the presence of large visitor numbers makes it more important for the council to ensure that any damaged or partially renovated buildings near busy streets do not pose safety risks.

How does the non-domestic rates system explain why the Scottish Government bears the revenue loss?

Under Scotland’s non-domestic rates framework, local councils such as the City of Edinburgh Council act as collection authorities for business rates but do not retain all the income directly for their own budgets. Instead, councils collect the rates from businesses in their area and pass the revenue to the Scottish Government, which then redistributes funding back to local authorities through its wider local government finance arrangements. In this case, by waiving rates for the six fire-affected premises, the council is choosing not to bill or collect sums that would usually go into this national pool. As a result, the estimated £2,000 per day in uncollected rates is counted as a loss to the Scottish Government rather than a direct reduction in the council’s own retained income. This structure explains why commentary around the incident focuses on the impact on Scottish Government revenues, even though the immediate decisions on billing and relief are taken at council level.

What is known about the duration and intensity of the fire response at the former Debenhams building?

Reports on the incident indicate that the fire at the former Debenhams building began in the early hours of Thursday 9 July, prompting an immediate response from the Scottish Fire and Rescue Service. Around ten fire appliances attended the scene at the height of the blaze, signalling that this was regarded as a serious and potentially complex incident, particularly given the size and central location of the building. Fire crews remained in attendance for more than 29 hours, finally leaving on Friday morning after ensuring that the fire was fully under control and that there were no lingering hotspots or structural hazards. The length of this response period reflects both the scale of the building and its status as a construction site, which can complicate firefighting operations because of altered internal layouts and exposed materials. The long on-site presence would also have contributed to the need for extended road closures and controlled access around Princes Street and Rose Street.

How are the affected businesses likely to experience the combined impact of closures and waived rates?

For the six businesses forced to shut, the immediate effect of the incident is the loss of normal trading days at what is typically a busy time in Edinburgh’s calendar. The council’s decision to waive non-domestic rates during the period of closure provides some relief on fixed costs, especially for the larger Boots store with its high rateable value. However, while the suspension of rates bills may help cashflow, it does not fully compensate for foregone sales or the potential loss of regular customers who may change their shopping patterns due to the disruption. The smaller Rose Street businesses, such as the tailor, shoe shops, Timpsons and vape store, may feel this particularly sharply if they depend on consistent local footfall rather than broader brand recognition. Over the medium term, their recovery will depend on how quickly access is restored, whether customers return in similar numbers and whether any additional support measures are offered by the council or other authorities.

Background to the Princes Street fire and redevelopment

The former Debenhams building on Princes Street has been undergoing renovation works as part of a project to convert the long-standing department store site into a hotel. This reflects a broader trend in many UK city centres, where large former retail premises are being repurposed in response to changes in shopping habits and the growth of online retail. Construction and renovation sites in dense urban environments can carry additional risks, including fire, due to the presence of temporary electrical systems, building materials and altered internal layouts. When incidents occur in such locations, their impact is magnified by the proximity of other businesses, key transport routes and high volumes of pedestrians. Princes Street and nearby Rose Street form a core part of Edinburgh’s commercial and tourism infrastructure, so any disruption there has implications that extend beyond the immediate area. The current situation therefore sits at the intersection of urban redevelopment, public safety, local commerce and national revenue systems.

Prediction: how could this development affect Edinburgh traders, residents and festival visitors?

Over the coming weeks, the continuing closure of part of Princes Street and the resulting transport changes are likely to affect three main groups: local traders, city residents and visitors attending the 2026 summer festivals. For traders, particularly the six forced to close, the balance between rates relief and lost turnover will be critical; if closures extend into August, some may struggle to recoup missed peak-season sales later in the year. Residents who rely on buses and trams for commuting and shopping trips may see sustained journey time increases and altered travel patterns, which could permanently shift where they choose to shop if alternative routes prove more convenient. Festival visitors, confronted with diversions and a partially closed streetscape at one of Edinburgh’s most iconic central locations, may adjust their movements and spending towards other parts of the city centre, influencing which areas benefit most from seasonal tourism. In the longer term, if the fire prompts tighter safety standards and more cautious management of large-scale refurbishments in central Edinburgh, future construction projects could face additional costs and planning conditions, but also potentially reduce the risk of similar disruptive incidents recurring.