Covid-19 Restrictions (Business Support)

– in the Scottish Parliament at on 30 September 2020.

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Photo of Maurice Corry Maurice Corry Conservative

6. To ask the Scottish Government how much funding it is allocating to support businesses in the west of Scotland to sustain the local economy as increased restrictions are implemented. (S5O-04646)

Photo of Kate Forbes Kate Forbes Scottish National Party

As the member will know, restrictions in the west of Scotland mainly concern households, so no specific funding has been allocated for local restrictions there. We have provided a package of direct support to business that is worth over £2.3 billion. That support is provided on top of support from United Kingdom Government schemes, which can and should go further to support Scottish businesses through these challenging times, for example, most obviously, by extending the job retention scheme.

We are pressing the UK Government for clarity on the funding implications for Scotland of its local restrictions support grant, so that broadly equivalent schemes can be developed in Scotland.

Photo of Maurice Corry Maurice Corry Conservative

One of the worst-hit sectors throughout the Covid crisis has been the tourism and hospitality industry, which provides a vital lifeline of work for many of my constituents. A recent study by the University of Edinburgh highlights a significant risk to younger businesses in the sector that have no profit and increasing debt. With the increased likelihood of a second wave of infections and continued localised lockdowns ahead, what action has the Scottish Government taken specifically to offer financial support to younger businesses in the tourism sector?

Photo of Kate Forbes Kate Forbes Scottish National Party

I agree with Maurice Corry that tourism and hospitality have been particularly badly hit. That is precisely why we have put in place the hardship scheme and the pivotal enterprise resilience fund to provide additional support, which was not available elsewhere.

I also gently say to the member that that is precisely why we are pleading with the UK Government not to write off businesses that still have not opened or cannot open, which is what the new job support scheme will do. The Chancellor is determining what is and is not a viable business, but we know that what he believes is not always the case, given that some businesses would be able to operate in normal circumstances but, through no fault of their own, cannot yet do so.

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