Covid in Scotland: Support for firms hit by pause in lockdown easing
- Published
Businesses affected by the pause in Scotland's lockdown easing have been allocated up to £12m of extra support.
The hospitality, events, weddings and soft play sectors in level two areas will benefit from the funding.
Economy Secretary Kate Forbes also confirmed a £62m package for taxi drivers and operators, as well as £25m for the culture sector.
On Tuesday it was announced 13 council areas would stay in level two due to rising case rates.
The move was described as "insane" by one soft play owner and a union said the new funding does not go far enough.
Ms Forbes said the Scottish government owed a great debt of gratitude to everybody who put the needs of the country during the pandemic ahead of their own financial or business interests.
She told MSPs: "Your livelihoods have been on the line for over a year. The essential restrictions have saved lives, but not without a cost.
"That is why supporting businesses has rightly been a priority for us and will continue to be so."
Ms Forbes said that while the Scottish economy grew by 2.1% in March, it remains 5.4% below the level of February 2020.
She added some sectors have clearly been hit harder than others and output from the accommodation and food sectors remains 70% below pre-pandemic levels.
Since the global health crisis Ms Forbes said businesses in Scotland have directly benefitted from £3.6bn in support.
She added a further £62m has now been set aside for taxi drivers across Scotland and £25m for the culture sector.
But Unite Scotland said the package for the estimated 37,000 taxi and private hire drivers did not go far enough.
The union called on the Scottish government to deliver a £10,000 grant for each taxi operator irrespective of size.
Unite Scottish Secretary Pat Rafferty said: "Support is desperately needed and welcome but this is a sector that has been failed once again.
"This announcement falls way short for the vast majority of operators who manage less than 10 cabs, and who continue to face high fixed costs at a time when the trade remains in crisis."
Craig Meikle has spent six years building up his business and has had to consider insolvency as an option
Earlier, the owner of Saltire Soft Play in Midlothian described the Scottish government's Covid rules as "moronic".
Craig Meikle expressed his anger that his nearest competitor, which is six miles away, can open from Monday while his business must remain closed.
Asked about the financial impact, he told BBC Radio's Good Morning Scotland programme: "Essentially we have went from being a business that has had no debts last March, before lockdown, to being a business that has over £200,000 of debt.
"With every passing week that increases by another £4,000."
Mr Meikle said he receives £2,000 a month in government support but it "barely covers" his insurance let alone other costs such as PAYE, national insurance, pension contributions and utility bills.
He added he owes his landlord alone more than £100,000 and without his support the business would have gone under.
The £12m package of support will be administered through the local authority discretionary funds and includes £4.5m to help support the wedding and event sectors.
An additional £7.5m has been earmarked to support hospitality and soft play centres in level two areas, should restrictions continue until the end June.
The Scottish government also confirmed payments to eligible businesses will be processed on a weekly basis.
The additional money for the culture sector will be targeted at those who qualify for support from the Performing Arts Venue Relief Fund and the Culture Organisations and Venues Recovery Fund.
- Published2 June 2021
- Published1 June 2021
