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COVID-19 Business Funding

Letter from Deputy First Minister and Cabinet Secretary for COVID Recovery, Scottish Government to the Convener, 6 January 2022

Dear Siobhian,

Following your letter dated 23 December 2021, I am writing to clarify details of the £375 million of funding that was highlighted by the First Minister in her statement on 21 December 2021. 

Following the emergence of the Omicron variant, we have taken further steps to control the virus. We are acutely aware of the impact of these measures on businesses, particularly in the hospitality sector during this key trading period.

The First Minister has announced a support package for businesses totalling £375 million. This includes £200 million from the Scottish Government’s budget and £175 million made available by the Treasury.

Of the £375 million, we have confirmed how £262 million will be allocated:

• £66m for hospitality businesses impacted by the cancellation of Christmas parties
• £32m for eligible hospitality and leisure businesses due to impact of physical distancing and caps on attendance
• £10m targeted support for hospitality businesses most affected by the requirement for table service
• £5m for nightclubs who are required to close
• £65m for the culture and events sectors due to impact of physical distancing and caps on attendance
• up to £28m for the taxi and private hire sector
• £19m for close contact businesses such as hairdressers and beauticians
• £8m for food and drink supply chain businesses including wholesalers
• £5m for the sport sector
• £3m for wedding sector supply chain businesses
• £6m for the worst affected businesses in the tourism sector, including international inbound tour operators
• £16m for existing public transport COVID-19 support schemes to recognise the impact on fare revenue

   

  We are working with local authorities, enterprise agencies and other partners – including sectoral representatives – to ensure this funding reaches eligible businesses as soon as possible. Work began before Christmas, and payments will be made from January onwards.

  Where confirmed, grants will be administered by the following partners:

• hospitality and leisure sector – local authorities
• wedding sector supply chain – enterprise agencies
• wholesalers affected by hospitality cancellations – Scottish Government
• tourism sector – VisitScotland
• culture sector – Creative Scotland
• events sector – EventScotland
• public transport providers – Transport Scotland
• taxi and private hire sector – local authorities
• sport sector – sportscotland and direct grants to the relevant sport governing bodies

We published guidance for the December and January business support top-up for hospitality businesses on 24 December which confirmed one-off grants would be paid at the rate of:

• £4,500 for hospitality premises with a rateable value of up to and including  £51,000
• £6,800 for hospitality premises with a rateable value of £51,001 or above

Local authorities have started contacting eligible hospitality businesses and payments will begin shortly.

Wedding supply chain businesses that previously received support through the Scottish Wedding Industry Fund (SWIF) will receive a top-up payment and be contacted directly by enterprise agencies from 10 January. Businesses that previously received:

• £5,000 will receive an additional £625
• £10,000 will receive an additional £1,250
• £15,000 will receive an additional £1,875
• £25,000 will receive an additional £3,125

A further round of the Scottish Wholesale Food and Drink Resilience Fund will run in January 2022. Further details on how eligible food and drink supply chain businesses will access support will be published shortly.

Further details and guidance for the events sector will be published shortly.

Top-up payments will be made to taxi and private hire drivers and operators that previously received funding through the Taxi and Private Hire Driver and Operator Support Fund. Local authorities will contact them directly.

Further details on how close contact businesses and workers will access support will be published shortly.

Decisions on the allocation of the remaining funds will be confirmed following further analysis and consultation with affected sectors on how it can best be targeted.

As per all previous Covid-19 business support funds, the Scottish Government will publish management information and statistics on funding paid out to businesses. However, the Scottish Government does not publish data on individual businesses that receive funding.

I hope the Committee finds this update helpful.

Can I also take this opportunity to acknowledge the committee’s other letter of 23 December 2021, regarding vaccine hesitancy. I can confirm that the points made within this letter have been noted.

I am copying this message to the Presiding Officer and SPICe.

 

Yours sincerely,

John Swinney
Deputy First Minister and Cabinet Secretary for COVID Recovery,
Scottish Government