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Scots rescue move to help firms being driven to wall
SCOTTISH businesses have been offered grants and a rates holiday as part of a £1.9billion coronavirus rescue package.
The Scottish Government yesterday confirmed it will ‘mirror’ all the measures introduced south of the Border by the Chancellor, Rishi Sunak.
It means every property in the hospitality, retail and leisure sector will get a 12-month ‘holiday’ from paying business rates – no matter their size. Smaller firms in the three sectors – those with rateable values of between £18,000 and £51,000 – will also be able to apply for a £25,000 grant.
The smallest firms which already benefit from the small business bonus scheme or rural relief will also be eligible for a £10,000 grant. The measures are being funded by a £1.9billion cash injection from the Treasury as a result of a similar package announced for England.
David Lonsdale, director of the Scottish Retail Consortium, said: ‘Scottish ministers have once again moved with commendable speed to back businesses dealing with the immense challenges created by coronavirus.
‘Removing the burden of business rates from retailers for the next twelve months represents a vital shot in the arm for a sector facing enormous uncertainty.
‘Ministers have clearly listened and this big, bold move will provide a cashflow and confidence boost at a time when coronavirus is casting a shadow over the economy. We look forward to seeing the details, however, it is a hugely positive step to protect jobs and businesses.’
Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: ‘What we need now is to ensure Scottish businesses are able to access and receive the grants as quickly as possible. We cannot wait days.
‘For many businesses, the urgency of a decision being actioned can be the difference between staying in business, keeping our employees, and ensuring we are able to survive this horrendous situation.’
Economy Secretary Fiona Hyslop, who confirmed the measures in Scotland to MSPs, also urged the UK Government to use their full powers to provide even more tax cuts to firms and individuals.
She said: ‘The Chancellor talked about a bridge for business but we need more than a bridge; in many cases, we need to protect capacity until demand returns. We need substantial grant support and tax breaks to keep, where possible, companies in business and people in jobs, and a greater emphasis on supporting individuals and households. In particular, today I ask the UK Government to reduce pressures on business through, for example, tax holidays through pay as you earn breaks, VAT reduction and the suspension of the apprenticeship levy; and to review competition policy to ensure markets remain equitable and regulations are put in place to safeguard consumers from price hikes.’
Figures published yesterday
showed that Scotland’s economy crept ahead by 0.2 per cent in the final three months of last year.
Miss Hyslop also warned of the severe impact coronavirus will have. She said: ‘As Covid-19 continues to spread globally, there is major uncertainty in financial markets, supply chains and the functioning of the global economy. The scale of the economic crisis could see gross domestic product shrink by 5 per cent over a three-month period, based on the economy operating at 80 per cent capacity.
‘The 5 per cent hit to GDP is also contingent on most businesses still being able to operate and function during that period.’