Firms ‘let down’ by Covid-19 cash lifeline hold-ups

Council’s efforts to administer grants branded ‘disappointing’

A SCOTTISH Government minister has branded Aberdeen City Council efforts on lifeline grants for businesses during the coronavirus crisis a “let down”.

The city council ranks second worst of all local authorities in Scotland for delivering on applications for the support funding.

Slightly more than 60% of 2,266 Aberdeen firms have received the emergency cash they asked for, compared to 82% in Aberdeenshire.

Councils have been tasked with administering grants on behalf of the government – with £17.1 million paid out in the city compared to £31.7m by its north-east neighbours.

The SNP’s Local Housing Minister Kevin Stewart branded the council’s efforts “extremely disappointing”, adding: “The council needs to get the finger out and ensure our city’s businesses get the support they need to survive, to safeguard jobs and to support the Aberdeen economy.”

But last night Town House sources claimed much of the staff ’s “amazing” work was not reflected in the official statistics and that around another 20% of the applications they had received would likely end in pay-outs.

Conservative council co-leader Douglas Lumsden said it was “an absolute disgrace” that Mr Stewart, the Aberdeen Central MSP, would “attack hard-working officers at a time of a global pandemic”.

Agovernment minister claimed city businesses are being let down by their council – as around two in every five applications for grants to help them through lockdown have been left in limbo.

Little more than 60% of Granite City firms applying for support have so far been given cash, according to the latest Scottish Government figures.

Only South Lanarkshire has performed worse, with 57% of applications paid out on, and the statistics leave the council well behind Highland and neighbours Aberdeenshire, which have paid out on 82% of applications, as Moray has delivered on 80%.

Aberdeen even trails smaller authorities in the north, with Argyll and Bute, Western Isles, Orkney Islands and Shetland Islands councils issuing more grants proportionately.

Aberdeenshire Council, which had received 3,336 applications by Tuesday, had paid out £31.7 million, while £45.3m had been issued after 4,898 inquiries from Highland firms.

Figures show just £17.1m has been awarded to Aberdeen businesses and that of the 2,266 funding bids made in the city, only 1,371 had resulted in payouts – about 60%.

It is understood another 35% have been deferred or rejected, with 450 applications still considered open and likely to end in payment.

Around 200 cases, it is thought, cannot be determined until the Scottish Government advises council officials on eligibility.

The government’s weekly business support funding statistics reflect none of these elements.

Aberdeen Central SNP MSP Kevin Stewart told The P&J: “The money is there for the specific purpose of supporting hard-pressed companies through the pandemic, but quite simply the council is letting local businesses down compared to their counterparts like Aberdeenshire, where nearly double the sum of money has been given out.

“The council’s Tory/

Labour administration needs to get the finger out and ensure our city’s businesses get the support they so desperately need to survive.”

The Scottish Government unveiled more than £1 billion in grants to help the worst-affected businesses make it through pandemic.

These were initially in the form of one-off £10,000 payments for small businesses and £25,000 cash injections for qualifying retail, hospitality and leisure companies.

However, after much protest from business leaders, the scheme was expanded to allow additional grants of £7,500 or £18,750 for businesses’ other qualifying properties.

Last night Conservative co-leader of the council Douglas Lumsden said: “We have processed 95% applications received and these have all been dealt with within the agreed timeline.

“For a Scottish Government minister to launch an attack on hardworking officers at a time of a global pandemic is an absolute disgrace.”