Excluded Smaller Firms Set to get New Grant Help Following FSB Drive

The Scottish Government today (26th May) announced that coronavirus financial help will be expanded to include businesses that share properties, such as indoor markets, and for firms that aren’t on the rates system, such as some bed and breakfasts.

The Federation of Small Businesses (FSB) – who led calls for this change – warmly welcomed the move, confirmed in a statement to the Scottish Parliament by Cabinet Secretary for the Economy Fiona Hyslop this afternoon. Additional details about the change to the grant funding will be released later this week.

Andrew McRae, FSB’s Scotland policy chair, said: “All over Scotland, many independent businesses have found themselves in the desperate position of being excluded from coronavirus financial support because of the type of property from which they operate. And many of these firms faced the same ongoing costs as those entitled to help.

“After FSB raised these issues, it looks like Ministers have recognised this injustice and have taken the right steps. While we need to understand the detail, they sound like savvy changes that could provide real support for many independent firms in their hour of need. However this help needs to be distributed quickly before these businesses run out of road.”

The Scottish Government also published new workplace guidance for the retail and manufacturing sector about the steps operators in these sectors will need to take before re-opening.

Andrew McRae said: “It is good to see the Scottish Government get this documentation out the door, not least because many firms want to begin to prepare to re-open. At every turn policymakers need to get practical, accessible guidance to firms at the earliest possible point.”

The Cabinet Secretary, Fiona Hyslop, also announced:

Scottish Government will extend the eligibility of the current small business retail, hospitality & leisure grant to businesses that occupy multiple premises with a cumulative value above £51,000.

Scottish Government will also extend this to businesses occupying premises such as shared office spaces, business incubators and shared industrial units where the landlord is the ratepayers.

Support for businesses without a bank account will be explored by the Scottish Government who were originally excluded from schemes such as the Hardship Funds.

The detail in all of this will be key and we are expecting further details to be released later this week. We will keep you updated on developments as soon as possible.

We are aware that some gaps still remain e.g. single property over £51K threshold which will remain as an issue.

 

Business Interruption Insurance: Update

Some of the following links might be useful to highlight what the ASSC is doing on behalf of the self-catering sector in terms of business interruption insurance:

The Treasury Select Committee’s is scrutinising the insurance industry

Evidence submitted to the Financial Conduct Authorities’ investigation into Business Interruption Insurance

Business Interruption Insurance

Insurance: Business Interruption

Covid-19: ‘The Uninsurable Risk’

Refunds: Update on CMA COVID-19 Taskforce

The Competition & Markets Authority (CMA) has published a second update from its COVID-19 Taskforce, which monitors and responds to competition and consumer problems arising from the pandemic.

As part of the Taskforce’s work, it is asking the public for information about businesses behaving unfairly, for example regarding cancellations and refunds or retailers charging unjustifiably high prices.

  • From 10 March to 17 May, the CMA has been contacted more than 60,000 times about coronavirus-related issues. Between 11 – 17 May on average 1,200 people a day contacted the CMA.
  • Since mid-April, the majority of complaints received by the CMA have been about unfair practices in relation to cancellations and refunds. Holidays and airlines account for almost 27,000 complaints, three-quarters of the total number of complaints about cancellations and refunds.
  • The CMA has launched a programme of work to investigate whether companies are breaking the law. Three sectors were initially prioritised: holiday accommodation, weddings and events and nurseries. The CMA has opened cases in respect of certain companies in these sectors and further details will be announced in due course. As a result of the rise in the number of complaints, package holidays have now been included in the scope of the investigation.
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