Scottish Government announces further financial support

Scottish Government announces further financial support

To help businesses affected by the temporary restrictions, the Scottish Government has announced a £40 million support fund.

COVID-19 Restrictions Fund

For businesses required to close by the regulations, the COVID-19 Restrictions Fund offers a one-off grant of up to £3,000. The level of grant depends on the rateable value of the business:

• £2,000 for value of up to £51,000
• £3,000 for value of £51,001 and above.

The eligibility criteria are as follows:

• For the business closure fund, you must be a hospitality or other relevant business required by law to close under the brake restrictions.
• You must have a business bank account. This is the account your grant will be paid into if your application is successful.
• Your business premises must be registered for Non-Domestic rates. Businesses that pay rates through their landlords rather than directly to a Council are eligible to apply (evidence to be provided through copy of lease agreement).
• Businesses which have breached wider COVID regulations/requirements prior to local restrictions are not eligible to apply.
• Businesses with certain connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020, are not eligible to apply.

Local authority hardship fund

Grants of up to £1,500 are available to support businesses that have been directly impacted by the restrictions but are still open – e.g. those in the supply chain of firms that have closed.

Furloughing support

To support the UK government 20% salary contribution requirement, up to £9 million will be put towards the cost of re-furloughing staff.

Businesses that don’t fall into the above categories will have access to a discretionary fund of up to £11 million.

How to apply

The Scottish Government is working with local authorities to finalise the application process. The information will be published here as soon as available.

Get in touch

If you have any further queries regarding the fund or would like to discuss the support available in more detail, please get in touch with your usual Azets contact.