FIFE MSP Alex Rowley has written to the Scottish Government warning that many Scottish businesses are at risk of collapsing after changes by the Scottish Government to coronavirus support grants for businesses.

Highlighting the case of High Street retailer Wilkies, which has 14 shops in towns across Scotland, Mr Rowley said that changes to the grant scheme in Scotland will mean that businesses like Wilkies will only receive one single grant payment as opposed to businesses in England which will receive one per premises.

A package of measures was announced by the UK Chancellor which would see businesses impacted by coronavirus eligible for a £25,000 grant for every property with a rateable value between £18,000 and £51,000.

Initially the Scottish Government said it would follow suit with the UK measures, but recently many businesses have found out that this has been altered.

The Scottish Government has made changes to business support grants such that only one grant will be payable to businesses as opposed to a grant per premises like in England.

Mr Rowley said: “Wilkies is a homegrown Scottish businesses that has been trading for almost 125 years, employs 131 people, of which 129 are women and makes a great contribution to our communities, local economies and High Streets.

“The Scottish Government have decided to put more financial support into the aviation and fishing industries, but this is putting many small business owners at risk of collapse. One grant for businesses like this is a drop in the ocean, and puts them at high risk of going under".

He concluded: “It is wrong that if these businesses were in England they would have a greater chance of making it through this turbulent economic time, the Scottish Government need to think again.”

Scottish Government Economy Secretary, Fiona Hyslop, in a statement to the Scottish Parliament, outlined the actions being taken by the Government to support businesses including a package of measures worth £2.2 billion from 1 April: a full year’s 100% non-domestic rates relief for retail, hospitality and tourism; £10,000 grants for small businesses in receipt of the Small Business Bonus Scheme or Rural Relief; £25,000 grants for hospitality, leisure and retail properties with a rateable value between £18,000 and £51,000; 1.6% relief for all properties, effectively freezing the poundage rate next year; urging local authorities to relax planning rules to allow pubs and restaurants to operate temporarily as takeaways; extending the go live date for the deposit return scheme to July 2022; halting the introduction of the Visitor Levy Bill.

 

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