Businesses to get more financial aid to ease pressures of Covid-19 crisis
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New support for smaller businesses and the self-employed has been promised, following pressure from the Federation of Small Businesses (FSB).
The £220 million Scottish Government package includes specific help for the newly self-employed, smaller chains, businesses with acute short-term cashflow problems and for other firms excluded from existing help.
FSB wrote to the Scottish Government making the case for an extended package of measures for operators excluded from existing support initiatives, as well as those who believed the previous help was insufficient.
The FSB’s Highlands and Islands development manager, David Richardson, said: “The remote, rural nature of much of the Highlands and Islands means that we have a higher proportion of self-employed workers than elsewhere in Scotland, and we also have a higher proportion of our workforce engaged in tourism-related businesses.
“There is no doubt that this region is more vulnerable economically to the damage caused by the current crisis than many other parts of the UK, and protecting local businesses and communities is vitally important. While we don’t know all the details yet, these new Scottish Government measures, which come after campaigning from the FSB, will undoubtedly help a great many Highlands and Islands businesses and the self-employed, and, by extension, the fragile communities in which they live and operate.”
Political opponents are describing the move as a U-turn after economy secretary Fiona Hyslop said businesses would only get the £25,000 grant for one property.
That caused consternation in the business community because in England the offer would extend to all properties to help them deal with the ongoing impact of the coronavirus outbreak.
The new package of measures includes £120 million to extend the Small Business Grant scheme to ensure that in addition to a 100 per cent grant on the first property, small business rate payers will be eligible to a 75 per cent grant on all subsequent properties.
A further £100 million fund is also being made available to protect self-employed people and viable micro and small to medium enterprises in distress due to Covid-19 which will be channelled through local authorities and enterprise agencies.
Finance secretary Kate Forbes said: “We are doing everything we can to support business at this difficult time and we continue to listen to and engage with the sector. Our support for business now exceeds the £2.2 billion passed on from the UK government and actively works to fill the gaps in the UK schemes.
“Around 100,000 businesses in total are already eligible for our small business grants and we will be extending that scheme in response to feedback from businesses on the frontline of this economic crisis.
“With UK government support not being available until June, we are going further to secure the future economic viability of Scottish firms and applications will be open by the end of the month.”
Arrangements for small business grants will be in place by May 5.
