Thousands of businesses 'excluded' from SNP pandemic support

But smaller traders, who cater for less than seven guests, feel they have been left out of hospitality top-up payments after a communications muddle which saw them not included on the list. 

One business told The Herald that it “didn’t know the sector was being pulled from the term hospitality until we tried to access grants”. 

They added: “At the time businesses were forced to close we were told we would automatically access the top up grant and then they advised we have a sector specific fund, so don’t panic.” 

But the announcement by Tourism Secretary Fergus Ewing to support larger businesses has angered around 15,000 smaller traders forced to close – while cafes and restaurants still able to offer takeaway services can still benefit from the one-off top-up grants of up to £25,000. 

Mr Ewing told Holyrood’s Culture, Tourism, Europe and External Affairs Committee that he has “been determined to make sure we don’t exclude them”, stressing that he wants all businesses to “get the lifeline support”. 

Scottish Tory rural affairs spokesperson, Finlay Carson, has penned a letter to Finance Secretary Kate Forbes, calling for a re-think. 

He said: “The Scottish Government did the right thing over the grants to taxi and private hire drivers and did a quick U-turn. 

“My hope is that they will have the courage to do it again and provide Scotland’s vital self-catering sector with financial support. 

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“If not then there is a serious risk of many of them being forced out of business as many of them have been closed since last September. They are being punished through no fault of their own.” 

He added: “There is a real worry that many of them will not survive as the bills stack up and with no income coming in for the foreseeable future." 

“Quite why they are being excluded from financial help is beyond me as the Scottish Government has received additional funding from the UK Government to provide assistance.” 

The Association of Self-Caterers (ASSC) has welcomed the support for larger businesses – but has questioned the lack of support for smaller traders. 

ASSC chief executive Fiona Campbell said: “If the Finance Minister is intent on sticking by this poor decision, it is now imperative that she explain in detail what reasoning, if any at all, lies behind it. 

“How can she seriously justify cherry-picking one section of the tourism and hospitality sector over another when it comes to funding eligibility? 

“Trust in the Scottish Government within our sector has all but evaporated as this pattern of contempt and neglect seems set to continue.” 

Ministers have been forced into a U-turn after large B&Bs and self-catering businesses warned they had been left out of support. 

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All self-catering properties, B&Bs and guest houses that are eligible at level 4 for non-domestic rates can now apply to the Scottish Government’s Strategic Framework Business Fund – set up for traders forced to close by government restrictions. 

Mr Ewing has now confirmed that support equivalent to the find will also now be made available to B&Bs which do not pay rates, but pay council tax after warnings were issued by traders. 

The move comes after B&B owners raised concerns they were missing out on vital funding. 

David Weston from the Scottish Bed and Breakfast Association, hold Holyrood’s Tourism Economy that many traders are missing out because they don’t pay business rate or have business bank accounts - adding that “many B&Bs have not yet had any financial help”. 

He added: “That might be because they are not on the business rates list—they pay council tax. About 49 per cent of our members pay only council tax. 

“Many small B&Bs do not even have a business bank account, which has caused problems in accessing some of the financial help that is available.” 

Mr Ewing was asked about the lack of support for B&Bs and self-catering businesses by Labour MSP Claire Baker. 

He said: “I have been determined to make sure we don’t exclude them - that we include them, that they get the lifeline support.” 

Mr Ewing could he took part in “fruitful and productive” discussions with Mr Western and Ms Campbell. 

He added:  “All self-catering properties, B&Bs and guest houses that are eligible at level 4 for non-domestic rates relief can now apply to the strategic framework business fund – which provides grants for businesses required to close by law as a result of Covid. In most cases, this will be payments of £2,000 every two weeks. 

Fergus Ewing

“B&Bs and guest houses and self-catering that pay business rates will qualify for the regular ongoing support every two weeks.” 

The Cabinet Secretary also confirmed that funding will now be available “to B&Bs and guest houses who do not pay non-domestic rates but pay council tax”, adding that “this support will be paid by local authorities”. 

Marc Crothall, Chief Executive of the Scottish Tourism Alliance said the re-think from the Scottish Government was “hugely welcomed and provides the timeline that businesses have been urgently seeking”. 

He added: “I know that representatives of the industry have also been very appreciative of the fact that they have been given the opportunity to work with representatives of Scottish Government, VisitScotland and the enterprise agencies to shape the criteria of the various funding schemes to ensure that this support reaches the businesses who need it most at what is undoubtedly the darkest period our industry has ever experienced. 

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“The STA will continue to work closely with the Scottish Government, VisitScotland and industry over the coming weeks to ensure that all businesses which are eligible to access support are doing so as efficiently and as quickly as possible and we will continue to make direct representation to ministers in both Scottish and UK governments for what is without question, a need for a further package of continued financial support and other forms of fiscal relief. 

“We will also continue to make the point that support will be required until such time the tier restrictions are relaxed sufficiently to allow businesses to trade to a level that they can meet their overheads and remain solvent.” 

Scottish Conservative economy spokesperson, Maurice Golden, said: “While this move is welcome it is yet another example of the SNP being forced into a U-turn on vital business support, after failing to get a funding scheme right first time around. 

“Our self-catering and tourism based properties have been among the hardest hit during this pandemic, and the SNP have been slow to get funding out the door to them. 

“Time and time again, the SNP have treated the needs of businesses as an afterthought and failed to get funding schemes up and running urgently enough.” 

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Scottish Labour culture, tourism and external affairs spokesperson, Claire Baker said: “All tourism businesses are stretched beyond breaking point due to Covid, and it was unfair that B&Bs and self-catering businesses were excluded from applying to the Strategic Framework Business Fund. 

“I welcome the news that support equivalent to the fund will now be available to B&Bs and self-catering businesses who pay council tax but not Non Domestic Rates, to be administered by local authorities. 

“However, this is not the first time the SNP government has forgotten this sector and then performed a U-turn. A little more transparency on its change of heart would have been appreciated. "