The £2billion b for Scottish bus

Chancellor’s rescue cash for firms hit by outbreak

SCOTLAND’S businesses will be handed a £2billion coronavirus rescue bailout from the Chancellor.

Rishi Sunak’s financial kiss of life for firms south of the Border – including grants and rates holidays – means a cash injection for devolved administrations.

Last night, the First Minister pledged that ‘every penny’ of the £1.9billion that will come to Scotland will go towards supporting firms.

It is a major boost for pubs, restaurants and theatres amid fears businesses in the hospitality and retail sectors could collapse.

Following Mr Sunak’s pledge that the UK Government ‘will do whatever it takes’ to protect the economy, Nicola Sturgeon said the Scottish Government will ‘pass every penny of consequential funding for business support into businesses in Scotland’, adding that the Chancellor’s cash boost was ‘very welcome’.

Finance Secretary Kate Forbes said: ‘I am committed to ensuring that funding allocated to Scotland is used to support people and businesses facing the financial and economic impact of Covid-19.’

Economy Secretary Fiona Hyslop also welcomed the extra support but added that ‘we need substantial grant support and tax breaks to keep companies in business and people in jobs... and a greater emphasis on supporting individuals and households’.

Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: ‘The additional support measures announced by Chancellor Rishi Sunak are essential if businesses are to survive.

‘We need the Scottish and UK Governments to provide access to these funds quickly and as easily as possible – any delays could lead to further job losses.’

David Lonsdale, director of the Scottish Retail Consortium, urged the Scottish Government to follow the Chancellor’s lead on rates, saying: ‘It’s reasonable Scottish retailers should have the same business rates holiday for the next year as English stores.’

Earlier, on the first full day since people across the UK were urged to work from home and avoid pubs, restaurants, cinemas and social gatherings, Miss Sturgeon warned that coronavirus will involve ‘the biggest peacetime mission our nation has undertaken in our lifetimes’.

She added: ‘The actions we require to take to mitigate a health emergency will also, for many businesses and individuals, cause an economic emergency.’

Paul Waterson, of the Scottish Licensed Trade Association, told the BBC’s Good Morning Scotland that without Government support, ‘we could well see the majority of hospitality businesses failing’.

James Withers, chief executive of Scotland Food and Drink, said: ‘Food and drink is a £15billion industry in Scotland, employing 120,000 people.’

He said £1.6billion of Scottish produce is sold around the world and ‘sales have fallen off a cliff’.

Yesterday, the Association of British Insurers warned that