Nicola Sturgeon has broken down the Scottish Government’s £100 million support for businesses package – with some business leaders believing funds still leave them short-changed.
The £100 million package aims to offset the losses that businesses will face through cancellations over the festive period.
Explaining the breakdown, Ms Sturgeon announced that £66 million would be allotted to eligible hospitality businesses, £20 million for the culture sector, £8 million for food and drink supply, £3 million for the wedding industry and £3 million to the tourism sector.
However, some business leaders have stated that the funds won’t be enough to save struggling small companies.
Sector ‘believed’ support would be focused on worst hit
Managing director of the Scottish Licensed Trade Association, Colin Wilkinson, said he believed the package would be focused on those directly affected by festive cancellations.
He said: “We believe that the funding of £66m to the hospitality sector announced today also includes cafes and takeaways – and even multinational fast-food outlets – well over 2,500 premises that certainly have not been affected directly by the Public Health Scotland messaging to defer Christmas parties in Scotland’s pubs, bars and restaurants.
“It is utterly indefensible for businesses which have not experienced the decimation that has been caused to the licensed hospitality sector at this vital trading period to receive the same level of support funding as those hit hardest by the recent ‘tsunami’ of cancellations.”
Fearing that funds could be ‘misdirected’, he added: “Some independent operators within this sector may well need some support, but they were not specifically targeted with messaging that has crippled the licensed hospitality industry.
“We still await the final detail of how the £66m fund for the hospitality sector will be divided up, but potentially a lot of Government funding will be misdirected to those far less in need of support than the battered and bruised licensed hospitality sector.”
Finance secretary says £500million needed to keep business sector afloat
Finance Secretary Kate Forbes has renewed calls for the UK Government to provide additional funding to help keep Scotland’s business sector open.
Discussions are ongoing Holyrood and Westminster to secure around £500million in additional funding to help sustain the local economy.
Speaking to BBC’s Good Morning Scotland, Ms Forbes said securing excess funding was crucial to support businesses.
She said: “The first minister will be setting out in a statement later our position, and I sincerely hope that she will have had the opportunity to speak to the prime minister over the course of today.
“Her calls are very similar to the calls of the Welsh government as well because neither the Welsh nor the Scottish Government have the ability to provide the financial support that would make a dent in the challenges faced by businesses right now.”
Others welcome access to fund
While some business leaders hitting out by saying not enough is being done, others are glad for the helping hand.
Among the latter group is the Scottish Wholesale Association (SWA) who remember how almost 95% of their trade disappeared at the beginning of the pandemic.
With £8 million being dedicated to funding supply chains, Colin Smith, SWA chief executive said: “This new funding recognises the immediate hardship being felt by wholesale businesses as their hospitality, leisure and tourism sector customers cancel orders.
“This is traditionally the busiest time of the year and Scotland’s wholesalers were looking forward to a successful Christmas trading period to begin the process of recovery after 20 months which have devastated the industry.
“Some wholesalers are holding even more stock than usual as a result of the difficulties experienced in the food supply chain in recent months and they are sitting on significant debt which needs to be repaid soon.
“Our members, most of whom are SMEs, are now facing the horrendous prospect of further lockdowns.
“We all appreciate that this support alone won’t be enough to provide financial aid to all wholesalers who need it or cover the huge losses in sales but it will help cover some costs and address some potential food waste.”