Moray councillors have backed calls for a new local grant scheme to be created to help businesses that have fallen through the net during the pandemic.
The full council yesterday discussed the emergency motion put forward by Buckie councillor Tim Eagle.
He previously called for the local authority to help the “worst affected” businesses that are unable to receive government support deal with the crisis’ financial implications.
Mr Eagle also suggested that the authority should support the region’s tourism industry that was worth £135 million to the Moray economy last year.
This comes after experts warned they believed Moray could be the worst-hit region in Scotland for job losses caused by the coronavirus pandemic, with fears an estimated 10,000 people may end up unemployed.
Harrowing economic analysis published by the Scottish Government’s chief economist, Gary Gillespie, found that 47% of jobs in Moray are in industries at high risk – such as tourism, construction and manufacturing.
Leader of the authority’s Conservative group Mr Eagle said: “I am delighted that councillors across the political spectrum joined with us in pledging their support for local business and the economic recovery of our region.
“Following conversations with many local businesses we recognised there was a need to look at local options to support business both in terms of aid but also in terms of what changes we can make to ensure people feel safe and able to return once businesses start reopening.
“This is about kickstarting tourism in Moray as well as protecting jobs across a wide range of other sectors.”
Council leader Graham Leadbitter backed Mr Eagle’s motion aimed at helping businesses struggling without government support.
He said: “At the moment grant schemes such as bounce back loans these are all covering most businesses needing support.
“However there are still some that have fallen through the gaps and that is understandably through the emergency legislation.
He added: “We need to step up and try to resolve it.
“In addition to hotels there are other tourist businesses that aren’t able to get support as grants are given at rateable value.
“We will get a clearer picture soon.”
Heldon and Laich councillor James Allan added: “I am glad that following discussions with managers in the council there was a mutual feeling that something needs to be done.”
Moray Council’s pandemic response from March until the end of June has cost £2.3 million.
Officials have warned that a lack of income has had a “significant” impact with a loss of £1.2 million in Council Tax and £300,000 in reduced industrial estate rental.
Figures published by the authority also revealed that being unable to capitalise staff costs where staff have been unable to work on capital projects during lockdown has cost £1.6 million from April to June.
Support from governments has so far only stretched to £3.9 million – leaving the council with a £1.5 million gap to fill.
Chief financial officer Lorraine Paisley added that some costs have not been included in the “snapshot” report such as the childcare in the hub and schools returning.
She added: “Most of the impact on the council has come from loss of income which has been significant.
“While the main cost has been staff for services like leisure that we are not able to deliver.
“We have seem a downturn in the revenue and starting to see some new costs appearing.”
The financial burden has been slightly eased by the reducing of some bills by £586,000 – including utility bills for buildings that have been closed and a reduction in fuel costs for staff travel.
Council leader Graham Leadbitter added: “These times are really unpredictable and the road departments are trying to get a programme back on track hopefully it will help get those capitalised costs lowered.
” We have lost income from car parking and leisure.
“I appreciate all the groups lobbying MSPS and MPS to try and ensure as much pressure as possible is applied to support the recovery of Moray.”
