‘Disproportionate’ impact of pandemic on rural economy

GROWBIZ: Warning from Perthshire group that many small firms will ‘struggle to survive’

A Perthshire business support group has claimed that rural firms are feeling a “disproportionate” impact of the coronavirus pandemic.

Coupar Angus-based GrowBiz said the combination of a higher proportion of self-employed people, inconsistent broadband coverage, poor transport links and greater distances to food supplies and health services threatens the rural economy.

Chief executive Jackie Brierton said the support for self-employed people announced by Chancellor Rishi Sunak on Thursday evening – which included some self-employed people being able to claim 80% of earnings – was welcome.

But she said the delay in payments until June would see many “struggle to survive”.

She said: “The spread of Covid19 presents enormous challenges for businesses across Scotland and especially for small and microbusinesses in rural Scotland, which contribute £37 billion to the Scottish economy every year.

“The support package announced by the chancellor on Thursday for business owners and the self-employed is obviously welcome but it’s not going to prevent serious financial hardship for many individuals and their families in rural areas.

“With a delay until June for any payments to be made, many will struggle to survive and those who have only recently started a business, and haven’t yet completed a self-assessment return, will have to use the benefits system.

“Self-employed people contribute billions of pounds into the UK economy through tax, national insurance and VAT payments and they also support other self-employed people as contractors, suppliers and customers.

“They are an essential part of our economy and adequate support needs to be delivered in a timely fashion.”

GrowBiz is providing phone and online support to anyone who is selfemployed or running a small or microbusiness in rural areas of Scotland.

In addition, the group is running a programme of online learning sessions and networking events for the rest of March and into April that are open to anyone looking for support.

Ms Brierton said: “GrowBiz is here to help rural businesses think through alternative strategies and different ways to reach their markets – and provide information on funding.

“We can also signpost to other sources of assistance.

“Our aim is to help anyone who is selfemployed or running a small or microbusiness in a rural area to get through the next few months.”

“

It’s not going to prevent serious financial hardship for many in rural areas... JACKIE BRIERTON