GLASGOW is the worst council in Scotland for processing applications for emergency business grants related to the coronavirus lockdown, official statistics have revealed.

The SNP-run authority processed only a quarter of the applications it received in the  last four weeks for government-funded schemes.

Scotland's second slowest council processed almost twice as many as Glasgow as a percentage, while the national average was above 60 per cent.

SNP Finance Secretary Kate Forbes admitted Scotland's largest local authority had faced "some initial challenges" but had "significantly scaled up operations" since.

Data released by the Scottish Government showed Glasgow received 12,840 applications and processed 3,217 of them up to April 28, paying out £39.7m.

Scotland’s second largest city, Edinburgh, processed more applications over the same period - 3,784 out of 5,505 - and paid out £49.45m.

Only one other council besides Glasgow processed under half its applications by Tuesday - South Lanarkshire turned around 49% of its 4,815 forms, paying out £26.7m.

The other 30 Scottish councils all managed over 50%, with Scottish Borders the most efficient, reporting it processed 96% of its 1,786 applications, worth £18.8m.

Across Scotland, councils have processed a total of 45,387 of 74,216 applications in the four weeks (61%), dispersing £525m to help firms cope with the collapse in trade. 

The figures cover the two business grant schemes operating in Scotland - a £10,000 grant for firms in receipt of various rates reliefs, and a £25,000 grant available to retail, hospitality and leisure properties with a rateable value between £18,001 and £51,000.

The grants are part of a £1bn package of support for firms in Scotland during lockdown.

The Scottish Tories said the problem could be even worse in Glasgow than the official figures suggested, citing a council memo saying there had been 17,000 applications.

It told councillors the volume of applications “presented significant challenges” for officials.

It went on: “We understand and appreciate the frustration that may have been felt by Elected Members on behalf of businesses in their wards who have been in contact regarding their applications.

“The administration of this process has been a hugely challenging operation for staff due to the massive volume of applications, evolving criteria and the technological challenges presented by staff being required to work from home and away from office based systems and connectivity.”

Glasgow Tory MSP Adam Tomkins said: “This is the SNP’s flagship council, and the party is letting it down badly. All over Glasgow people face losing their jobs because these payments just aren’t being processed quickly enough.

“That is a slap in the face to hardworking business owners who find themselves facing ruin through no fault of their own. Glasgow’s SNP administration needs to take a look around the rest of the country and buck its ideas up fast.”

SNP Finance Secretary Kate Forbes was asked about the delay in Glasgow in a virtual  Holyrood question session this afternoon.

Glasgow Labour MSP Pauline McNeil said it was taking “too long” to turn around the paperwork as many small firms in the city were struggling to survive.

She said: “Businesses are really getting concerned about how long it’s taking to get government assistance.”

Ms Forbes said: “I understand that Glasgow City Council faced some initial challenges, as many councils did, with the need to work from home, but also manage the non-domestic rates system.

“But they have significantly scaled up their operations in order to get through this applications as quickly as possible. They have more than doubled the number of staff processing applications to get through them quickly.”

A Glasgow City Council spokesman said: "We have received more than 17,000 applications, by far the largest number in any local authority area in Scotland. 

“Around £45m has already been paid to 3,500 Glasgow businesses – and we have around a thousand more deferred applications ready to be paid, subject to new Scottish Government guidelines.  

“This has been an unprecedented challenge. Unfortunately, around a quarter of all applications were incomplete or ineligible on submission, and this – along with the need to carry out proper due diligence and fraud checks - has had a significant impact on processing times.

“We understand the concerns of businesses and have almost trebled the number of officers working on the fund to ensure we do everything in our power to deliver support to those that qualify.”

In the Holyrood Q&A, Ms McNeil and North East Tory MSP Peter Chapman also called for a tapered system to replace the “cliff edge” that applies to the £25,000 grants, which is not open to companies with premises with a rateable value over £51,000.

Ms Forbes said she was aware that some businesses were “falling through the cracks”, and so an extra £100m of hardship and resilience grants was now open to applicants.

She said: “Those funds are designed to reach the people that haven’t had support yet, or the people that have had some support, but are so critical to local economies that they need special, bespoke aid through our enterprise agencies.”

She said she would also raise the cliff-edge with Chief Secretary to the Treasury Stephen Barclay when she spoke to him later today.

She said: “I want to see as many businesses as possible receive those grants, which will be a lifeline to help them. Also we will, as far as we can, fill the gaps. 

“However as the Scottish Government has limited financial levers. We can only fill so many gaps with the powers and resources that we have.

“That’s why we need to work closely with the UK Government, who ultimately have the fiscal levers and ability to provide more [Barnett funding formula] consequentials to help even more people.”

Scottish Tory leader Jackson Carlaw said: “We are now several weeks into this crisis yet still small businesses are being let down by a sluggish SNP government.

“Business owners have always suspected the SNP just isn’t interested in supporting local economies like this, and these grim statistics expose that.

“These are small retailers who will just collapse unless help arrives soon.

“The SNP government needs to get its finger out to ensure that, once the public health crisis is dealt with, the economy is in a decent shape to move forward.”