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Traders: Restart grants end ‘brutal’ unfairness for Scottish businesses

Donald Begg, outside his family's shoe shop in Inverness High Street in 2019
Donald Begg, outside his family's shoe shop in Inverness High Street

Businesses will receive a “restart grant” from the Scottish Government as coronavirus measures ease, Nicola Sturgeon has confirmed.

The first minister told MSPs those in receipt of support due to current restrictions would receive a final payment on March 22.

The SNP leader said this could mean lifeline assistance of nearly £20,000 for some companies.

She added: “Then on April 19, recipients will receive a combined final payment comprising a further two weeks closure support and a one-off restart grant.

“For eligible retail businesses this will mean a payment on April 19 of up to £7,500 and for eligible hospitality and leisure businesses a payment of up to £19,500.

“This will provide support that is both more generous and also more flexible than previously envisaged.”

It marks an end to constant campaigning by north and north-east business owners who have been desperate for parity with their English counterparts.

Bosses have written near daily letters to Nicola Sturgeon and Finance Secretary Kate Forbes, urging the move as they risked losing out on tens of thousands of pounds compared to competitors down south.

Michael Lumsden, whose company Pure Spa And Beauty has salons in Aberdeen’s Union Square and Cults, praised ministers for listening to the concerns.

He said: “In the background we have 40 or 50 businesses talking on a regular basis, though I’m sure we were not the only ones screaming out.

“The restart grants will allow businesses to stock up, gives them some cash in their pocket to pay landlords and do things they were probably holding off doing until they knew when they could open their doors again – the lump sum is a real positive.

“At the end of the day, the Scottish Government has given reasonable support to businesses through the pandemic.

“But it’s just a pity in how we have got there, having to fight – almost beg – for everything we have got whereas in England it has seemed to flow much more easily.”

Begg Shoes director Donald Begg estimated his family’s business, which started in New Pitsligo more than 150 years ago, would have been £42,000 worse off compared to UK competitors had nothing changed.

As well as their shops in Peterhead, Inverurie, Elgin, Inverness, Kirkwall, Lerwick and Perth, the firm tussles for trade on the internet.

Mr Begg told The P&J: “It is a massive relief to us as an online trader, competing against English firms, it has been brutal knowing they were way better off financially with a lifeline we didn’t have.

“It would have been hard getting through that but with this level playing field we feel we have as good a chance as anyone.

“The main question remains though: if we have handled the pandemic better than England and this is being done on data, then why are non-essential retail stores not opening at the same time, if not earlier?”

Last night, the Federation of Small Businesses called for ongoing support after the lifting of restrictions.

“New Scottish Government restart grants are incredibly welcome, but that can’t be the end of efforts to help independent operators both make it to the summer and eventually recover from this crisis,” Scottish policy chairman Andrew McRae said.

“While we should cheer the prospect of the end of lockdown, we need more action to help our local businesses deal with its long-term consequences.”