Scottish Government announces additional grants for closed businesses

Retail, hospitality and leisure businesses that have been ordered to close are to receive additional, one-off grants. These will be paid in addition to the 4-weekly grants that they already receive via the Strategic Business Framework Fund (SBFF). Like the SBFF, the one-of grants will be based on the size of the company measured by the rateable value of its business premises.

• Hospitality businesses with a rateable value of £51001 or more can claim a £25000 grant in addition to the £3000 every four weeks that is available through the Strategic Business Framework Fund.
• Hospitality businesses with a rateable value of up to £51000 can claim a £6000 grant in addition to the £2000 every four weeks that is available through the Strategic Business Framework Fund.
• Leisure and retail businesses with a rateable value of £51001 or more can claim a £9000 grant in addition to the £3000 every four weeks that is available through the Strategic Business Framework Fund.
• Leisure and retail businesses with a rateable value of up to £51000 can claim a £6000 grant in addition to the £2000 every four weeks that is available through the Strategic Business Framework Fund.

The one-off grants can be claimed immediately.

Commenting on the announcement, Alan Mitchell, Chief Executive of Fife Chamber of Commerce, said: “While the additional funding is very welcome and will be a short-term lifeline for some businesses, it will still not come close to compensating them adequately for the income they are losing because of their enforced closure. It is noticeable that the Scottish Government’s announcement said nothing about additional help for the companies who supply hospitality, leisure and retail businesses. They still only receive grants worth a derisory £1400 or £2100 every four weeks to compensate them for their lost sales.

“That is not acceptable and is part of a long-term pattern of behaviour by the Scottish and the UK Governments who have consistently failed to provide sufficient financial support for the businesses closed or restricted by covid suppression measures. That risks the permanent loss of more perfectly viable businesses than needs to be the case. It will also undermine recovery from covid because many of the businesses that do survive, will be in such a weak financial position that they will not be able to invest for rapid growth. More people will lose their jobs and it will take them longer to find a new job. That is the human cost of not giving firms the full support that they need now, when they need it most.”

Click here for further details and information on applying for a grant.