SNP mismanagement of business support funds risks economic catastrophe Murdo Fraser

If there was ever any doubt as to which issue was consuming the thoughts of the nation, then a quick glance at the inbox of any elected politician would make matters clear.

Every day I receive dozens of emails from constituents about the Covid-19 pandemic: from those complaining that we have too many restrictions, those complaining that there aren’t enough restrictions or that they are not being sufficiently rigorously enforced, to those from individuals seeking clarity on what the restrictions mean in practice.

Amongst all this, the most regular – and concerning – communications I receive are from individuals in business, or the self-employed, desperate for financial support, and simply not getting it.

The Business Impact of Coronavirus Survey released at the weekend showed that one in four firms have “no, or less than three months’, cash reserves”. Against that backdrop, it is not surprising that there is a mood of desperation setting in amongst many businesses, concerned that if they do not get the funds they need to support them then they will go under.

The reality is that, despite the promises made by SNP ministers, far too little support is actually making it to the front line. According to figures published late on Friday, just £55 million has actually been paid out in business support in the latest round. This is less than one-tenth of the total sum of £715 million announced by Nicola Sturgeon as having been allocated since October.

In addition, of the 30 business support funds announced by Finance Secretary Kate Forbes in December, we know that as of last week only seven of those were operational and paying funds out. There is a huge level of frustration within local government from those tasked with administering these funds that they are still waiting on detailed criteria from the Scottish Government which would allow them to start assessing applications.

A classic case in point is the Digitalboost grant for SMES which had to close for applications within just a few hours of opening last week, due to it being massively oversubscribed. For those who spent time completing applications, it was a

deeply frustrating exercise. It is easy for the First Minister and her colleagues in government to get a headline by standing up in Parliament, or at a daily press conference, and announcing business support. This builds levels of expectation amongst those who are desperate for financial assistance. What is much harder

is actually ensuring that the money is being paid out to those in need. The consequence of the delays we are seeing will be that businesses will fold, and jobs will be lost.

This all comes against a backdrop of the UK Government having guaranteed to Holyrood a minimum additional sum of £8.6 billion in the

current financial year. There is no shortage of money provided to the Scottish Government for business support, but where things are falling down is in actually getting this out the door to those in need.

There was always a huge risk with Covid-19 that, without proper support, a health crisis would become

an economic catastrophe. The UK Government has provided the financial backing that Scottish businesses need. What we cannot have is a collapsing economy caused by the Scottish Government’s inability to properly administer the funds. Murdo Fraser is Conservative MSP for Mid-scotland and Fife