The Courier & Advertiser (Fife Edition)
Grant scheme for pandemic has ‘problem’
AScottish Government minister has been warned there is a “problem” with the pandemic support system for businesses in Tayside and Fife.
Concerns were raised about the structure of the grant scheme amid claims it unfairly penalises companies that have no choice but to close, but are not legally required to shut.
External Affairs Secretary Michael Russell was urged to review the system, as local MSPs also highlighted the “tough” transition ahead for firms in Dundee, if restriction levels are heightened in the coming days.
Under a new grant scheme, businesses required by law to close are eligible for additional grants of £2,000 or £3,000 every four weeks , depending on rateable value.
However, firms that can remain open but cannot trade normally due to restrictions will only be in line for £1,400 or £2,100 every four weeks while the rules are in place.
As part of Scottish Government plans, licensed premises in Level 2 of the five-tier system – which is expected to include Angus, Fife and Perth and Kinross – will be able to serve alcohol with a meal until 8pm, while in Level 3, potentially including Dundee, they can only remain open until 6pm, and cannot serve alcohol.
Willie Rennie, Scottish Liberal Democrat leader and North East Fife MSP, questioned the support system at a meeting of Ho lyrood ’s Cov id-19 committee yesterday.
“With the change of the opening hours, particularly for hospitality, many businesses will feel that they have no other choice but to close, but technically they will not be forced to close,” he said.
“Yet the grant support levels are either for those who are closing or hardship support for those who are affected by it.
“If this is going to be the ongoing structure of the financial support, I think there is a problem.”
Mr Russell highlighted that funding for such grants in Scotland is dependent on decisions taken for f irms in England.
“I think I have to say to Willie, were we entirely free to operate in the way we would like to operate, with the resource that we need to operate, I would 100% agree with him,” he said.
“Because I am a constituency MSP, as he is a constituency MSP, and he is receiving, I am sure, as I am receiving, very, very strong representation, from peop le whose businesses are on the line. Good businesses which they have operated well and believe they can continue to operate.
“But we are not in that position, so therefore what Fiona Hyslop and Kate Forbes have to do is try to find as much as they can to create the circumstances where there is support for everyone who needs it.”