The Council also collaborates with the Edinburgh Chamber of Commerce and LEEL in the Edinburgh Business Support Partnership. This formalises the practical co-operation between business development staff of all the organisations in delivering advice and support to companies. It also ensures that there is one point of access for any individual or business to the complete range of services on offer, whether contact is made with any partner organisation or through the Business Shop.

In addition to the direct company support, the Council contributes to business growth in a variety of strategic areas. It provides nearly one-third of Edinburgh & Lothian Tourist Board's annual budget; funds elements of the tourism arts market, including a significant role in the development and support of the Edinburgh International Science Festival; is active in supporting training and access to employment measures; and continues to develop physical business infrastructure, especially in South East and North Edinburgh.

Finally, the Council recognises the opportunities of the new Parliament and the need to work alongside it as both city asset and colleague in governance to maximise the scope for business and economic growth into the millennium.

EDINBURGH is a picture of economic vigour and is striding into the millennium confident of its long-term prospects whatever setbacks may intrude short term. Even in the UK recession of 1990­92, Scotland's capital generated more jobs than were lost, enjoying economic growth of 5.4% while the UK's economy was shrinking by 2.8%. Since then, a thriving services sector which provides more than 85% of the City's jobs has propelled it forward. GDP per head in Edinburgh is estimated at £9,400 -- 10% above the UK average. Only Cambridge and Cardiff among the major UK cities outside London are tipped by the Henley Centre for Forecasting to out-perform Edinburgh's predicted 21% real growth in economic output between 1996 and 2002. Edinburgh emerged as the most competitive of all these cities in a Henley study. The key factors studied were industrial structure, dynamism, labour market, enterprise development, quality of life and environment, infrastructure, connectivity, wealth, poverty and social exclusion. Edinburgh's big private sector employers -- finance, retail, tourism, and business services -- are all in growth business sectors.

In finance, Edinburgh is in the forefront of innovation. Witness the steady stream of announcements about new products, business diversifications and internationalisation flowing from Bank of Scotland, Royal Bank of Scotland, Standard Life and Scottish Widows. Imposing new offices at Edinburgh Park on the western fringe and The Exchange in the heart of the City are a vote of confidence in the future of its financial sector. The City of Edinburgh Council has played a key role in development through organisations such as EDI for Edinburgh Park and EICC Ltd for The Exchange and the associated Edinburgh International Conference Centre.

Tourism is worth £1bn a year to Edinburgh's economy and the 19% increase in bed stock during 1997 and 1998 underlined expectations for further growth. Buoyed by events such as Edinburgh's Hogmanay and new attractions like the Former Royal Yacht Britannia, efforts to reduce dependence on the peak summer months have been highly successful. Retailers find trading conditions tough, but still employ 20,000 people in Edinburgh's shops and stores. Edinburgh's attraction for shoppers is to be boosted by the Princes Street Galleries development in which the Council is a major player, and by up-market store Harvey Nichols planning to open up at the St Andrew Square bus station site when it is redeveloped. The City's telecommunications links are excellent, as you would expect in a major financial services centre. Edinburgh Airport is one of the UK's fastest-growing airports and has invested heavily to expand capacity and improve quality as flight frequency and destinations have increased and fares have fallen.

Edinburgh's skills and education base is high: excellent schools, three universities, four colleges, an array of world-class research institutes, and a highly trained and experienced workforce in areas such as banking, finance and IT. 22.6% of adult residents have higher qualifications, including professional and vocational awards, more than in any other major UK city and well above the GB and Scottish averages of 13.5% and 14% respectively. In conjunction with Microsoft, the world's leading software company, the Council is extending Internet access in schools. Soon, every Edinburgh school student will have his or her own e-mail address.

There are undeniable threats on the horizon too. Mega-mergers and acquisitions are sweeping financial services and could remove banking, insurance and fund management headquarters from Edinburgh. Jobs are constantly under threat in a sector looking for tight cost control and efficiencies through widespread use of information technology.

In tourism, shortly to become the world's largest industry, Scotland pitches itself as a quality destination, but the product sometimes fails to live up to its billing. Developing a reputation as a high-cost destination indifferent to quality would jeapordize our market share. Faced with global forces over which it has no control, Edinburgh must encourage the start-up and growth of small and medium-sized enterprises (SMEs) to extend and replenish its stock of companies for the future and reduce dependence on large employers. Entrepreneurship is one of the few areas in which it looks second-best. Companies employing 1-49 people account for 18% of employment in the City, half the level in Bristol, Cardiff and York and a third of the proportion in Oxford. However, with the highest proportion of managerial and professional employees in its workforce, Edinburgh has an important raw material for new company formation.

Finance is another key. Liaising closely with LEEL to avoid duplication, the Council makes £1m available for SME support each year through four, carefully focused vehicles. Edinburgh Business Development gives grants to help SMEs more than one-year-old to grow and develop. It is aimed at companies in manufacturing, tourism and business-to-business services. The Edinburgh Business Loan Fund provides interest-free loans for start-ups or recently formed businesses that have exhausted all other avenues for funding. The Quest Fund awards grants to promote innovation and new product development in manufacturing and high technology. Lothian Investment Fund for Enterprise (LIFE ), which has been developed in partnership with The Royal Bank of Scotland, offers commercial loans and/or equity investment in the range of £10,000 -- £100,000 to meet the funding gap experienced by many small and medium-sized companies with plans to expand. These financial assistance schemes have helped a wide variety of firms ranging from a ship-fitter helped to diversify away from dependence on military work, an events promoter, and a vehicle maintenance company. The funds are available to companies with growth potential throughout the City.

Business support illustrates one reason why Henley ranked Edinburgh so highly against other cities -- the strong local partnerships that have been forged between the main movers in economic development and planning. The Business Loan Fund, for example, is run jointly with Edinburgh Chamber of Commerce and Enterprise. The Council and LEEL co-operate on a strategy for Edinburgh's economic future and which aims to create one of the highest rates of new firm formation in any UK city by 2010. Business opportunities are increasing through the creation of Scotland's own Parliament in Edinburgh. A conservative estimate is that it will create more than 2,400 additional jobs. The City's role as centre of decision-making will create a buzz, which can be used to attract more business. Dublin has discovered this effect and Edinburgh is determined to derive similar long-term benefits from its raised status.

A more detailed study of the impact of the Parliament on Edinburgh's economy was recently completed by consultants DTZ PIEDA for the Council, Scottish Office and LEEL. The report looked at the likely employment impact on sectors such as media, law and tourism. It also assessed the implications for the property market in the eastern City centre, around Holyrood, where the Parliament is to be located from 2001, and examined ways of harnessing the benefits for local regeneration. More information about the study is available from the City Development Department (see details on splash screen).