Aberdeen cafe owner's fears over business support grant rejection

Katie was filmed last year by BBC Scotland amid fears for the future of the market

An Aberdeen cafe owner has said she feels "frustrated and alone" after her application for a business support grant was rejected.

Aberdeen Market is closed during lockdown, and last week plans were also approved to demolish the building to make way for a new development.

Katie Kardosova, who runs Combo, has not qualified for financial support.

The Scottish government said it was listening to concerns, and had introduced a £100m grant fund to help.

Because of the way in which she pays her business rates, the Combo owner found herself unable to get financial help from the government scheme, and she fears her business may not survive.

Like other traders at the market, she pays a flat fee to the market operators, which includes her business rates.

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She therefore does not appear as the liable ratepayer, so does not qualify for the Covid-19 business support grant.

Financial survival over just the next few months has now become the focus.

Ms Kardosova said: "My cafe was for normal working people on a moderate income and also for pensioners.

"Once everything is eased, people are going to be kind of scared to go out and to be able to survive. We need some kind of support."

She explained: "I've got a VAT bill to pay, I've got my first tax bill to pay, and because we are not able to make money then that's not good at all."

Plans to replace the market have been approved

Aberdeen Donside MSP Mark McDonald said it appeared there were gaps in the safety net, and more needed to be done to ensure businesses did not fall through.

He said: "I'm asking the Scottish government to look at Katie's case. I can't imagine for one second that this will be an isolated example.

"And to look at whether or not the guidance that's been issued to local authorities needs to be refreshed in order to ensure that small businesses, like the one that Katie is running, can survive."

The Scottish government said it was going to "great lengths" to support businesses, and that the total package for businesses now totalled £2.3bn.

'Unprecedented challenge'

A spokesperson said: "It's precisely because we recognised that there were a number of individuals and smaller firms ineligible for support from the UK government, or not yet in receipt of the funds they need to survive, that we introduced a £100m grant fund.

"Because of the decisions the Scottish government has taken, thousands more self-employed people and small businesses will be able to benefit from support compared with elsewhere, and we have been able to help sectors of the economy that are not being supported in other parts of the UK.

"We are listening to concerns as we continue to explore how best to support businesses during this unprecedented economic challenge."

An Aberdeen City Council spokesperson said: "We are administering these business grants on behalf of the Scottish government and they have set the guidance, not Aberdeen City Council.

"The guidance from the Scottish government states that the grant scheme is linked to rates and if 'an individual business does not pay rates or receive rates relief directly (even if they contribute to rates via rent and while their landlord is the ratepayer) they are ineligible for the grant'.

"Therefore, as this business has a rent and rates agreement there can be no award as directed by the Scottish government."