The Courier & Advertiser (Angus and Dundee)
Cash flow: ‘Two to four weeks tops’
Chancellor’s measures to be copied by Holyrood for hard-pressed businesses
The Scottish Government will replicate measures announced by the UK Government to support business during the coronavirus outbreak, the economy secretary has said.
In a statement to MSPS, Fiona Hyslop said the Scottish Government will offer loans to businesses of different sizes in the same way as Chancellor Rishi Sunak announced on Tuesday.
But she said there was “more to do” to protect companies across Scotland.
Under the new plans, small and rural businesses will be able to apply for a £10,000 grant, hospitality businesses will be given 12 months of business rates relief, and those with a rateable value of between £18,000 and £51,000 will be able to apply for a £25,000 grant.
Ms Hyslop told the Scottish Parliament: “We’ve already confirmed our intention to effectively freeze the poundage rate next year and today I can confirm that we will mirror the package of measures announced by the chancellor.
“That will ensure that small businesses receiving the Small Business Bonus or rural relief will be eligible for a £10,000 grant.
“We will provide 12-month relief for properties in hospitality, leisure and retail and provide a £25,000 grant for hospitality, leisure and retail at a rateable value between £18,000 and £51,000.”
She called on the UK Government to do more to help companies rather than offering loans, claiming “debt is still debt”.
Ms Hyslop added: “We need an agreed economic framework in place with the UK Government.”
Alluding to the financial crash of 2008, the economy secretary said: “We must think beyond that last crisis, this is potentially of greater order of magnitude and a different type of shock.”
Ms Hyslop also reiterated her calls for more grant support, tax breaks and a “greater emphasis on individuals and households”.
She continued: “In particular I am today asking the UK Government to reduce cost pressures on businesses, through for example tax holidays through PAYE, VAT reduction and the suspension of the apprenticeship levy.”
Restaurants, pubs, cafés and hotels across Tayside and Fife have been announcing temporary closures due to a downturn in trade as the cornoavirus crisis deepens.
Tutties Neuk in Arbroath and the Twa Tams in Perth were among the first to shut this week.
Blairgowrie is also bracing itself for a reduced cash injection from its tourist economy this year, having sustained Covid-19’s first blow.
The town’s Royal Hotel closed in February due to a downturn in the Chinese economy, and staff were temporarily laid off.
Conservative councillor Caroline Shiers is concerned that if the hotel doesn’t reopen promptly, the town will suffer.
She said: “Easter is traditionally the start of the season in this part of the world, which can be shouldered by good ski seasons.
“It’s too early to measure the impact yet, but the Royal is a large provider of beds in a prominent High Street location, so if it doesn’t reopen soon, there will be a noticeable impact.”
In Fife, where there are 3,000 restaurants and cafes and 1,500 pubs, the hospitality sector accounts for more than 3% of the workforce.
Bosses at the Laurelbank Hotel in Markinch, formerly known as Drummonds, said they had already seen a huge fall in business and had decided to move to weekend opening.
It will be open on Fridays, Saturdays and Sundays from noon to 10pm, with capacity limited by spacing tables.
A spokesman said: “This will enable our team to continue to earn some money and pay the bills, while providing a safe environment for everyone.”
Kirkcaldy Labour councillor Alistair Cameron said he had met several local business people who are anxious about their future, with some warning they are working with a maximum cash flow of just two to four weeks.
Mr Cameron, who has 45 years of experience in retail, said the hospitality industry was particularly vulnerable.
Two local cafes, The Bakers Field in Tolbooth Street and Kangus in Victoria Road, have already made the decision to close until further notice but Mr Cameron said others were confused.
“What do they do about staff if footfall drops, which it already has and will continue to do?” he said.
“Margins in retail and hospitality are so low and what I was getting back was people have two to four weeks of cash flow tops and they are caught between the devil and the deep blue sea.”