Large (7 or more guests) Self-Catering Grant

The Large (7 or more guests) Self-Catering Grant is part of a £7m funding package that has been designed to mitigate the serious impact that the single household restriction has had on the vital part of Scotland’s tourism industry.

Self-catering properties that accommodate more than seven guests have been effectively forced to close by the rule and many have been left without any reliable means of income or government support. It is hoped that the money will ensure the viability of such businesses into the future.

Association of Scotland’s Self-Caterers Chief Executive, Fiona Campbell, said:

“We very much welcome the announcement of this vital support package for Scotland’s self-catering sector and we look forward to working with the Scottish Government to get it to where it is most sorely needed.

“Today’s announcement will undoubtably be accompanied by sighs of relief from self-caterers across Scotland, many of whom have seen the viability of their businesses put in doubt.

Tourism Secretary Fergus Ewing said:

“It is clear that some larger self-catering properties have been uniquely impacted, initially by the rule restricting the number of guests to six from two households, and then by the single household rule.

“I am pleased to confirm the details of this extra support for self-catering businesses. This will be targeted directly where it is needed most, to those self-catering businesses that have been severely impacted by the restriction on household numbers. All self-catering and other accommodation providers are already in scope for regular payments from the SFBF and I would encourage business owners to make sure they have registered with their local authority for this support.”

Self-Catering Units’ rateable values are based on the number of bed-spaces that your business provides per rateable value (not including sofa-beds). 

Smaller Self-Catering Businesses

All self-catering businesses registered on Non-Domestic Rates (regardless of whether you benefit from Small Business Bonus Scheme), are still eligible for the Strategic Framework Business Fund Grants, including those on Level 3 Islands:

Grants will be paid every 4 weeks in arrears as long as restrictions last.

If your business is required to close by law, apply for the Temporary Closure grant:

  • £2,000 if your business premises has a rateable value of up to and including £51,000
  • £3,000 if your business premises has a rateable value of £51,001 or above
  • From 1 January 2021 there will no longer be an upper limit of £15,000 for any eligible business operating multiple premises.

Applications to the Strategic Framework Business Fund should be made through your local authority website.

Exclusive Use Venues

Exclusive use properties in Scotland provide accommodation solely for one customer or parties with a minimum let of one day. Normally, there is a minimum of three bedrooms, a residential licence or equivalent, and a full range of services for guests including all meals.”

According to the Scottish Assessors, Exclusive Use Venues are properties whose typical uses include a venue for weddings, conferences, corporate entertainment and private parties. The key criterion is that the property, or significant parts of it, is rented out to a single hirer at any one time.

Properties may provide facilities that range from purely a function venue, through to facilities that are similar to high quality hotels. The character of the property may range from function halls with little or no outlook, to marquees in scenic locations, grand rooms in historic homes and castles, to country houses and their associated estate. Some exclusive use venues will provide overnight accommodation either in the main building or in lodges at the property or a combination of both. This is the basis on which the rateable value of properties are valued by the Scottish Assessors.

This grant is reliant on the Exclusive Use Venue offering accommodation.

Properties used as short stay accommodation only, such as self-catering units (Commercial Properties Committee Practice Note 17), should not be valued as Exclusive Use Venues. Properties let out on a per room basis akin to hotels should be valued on the Hotel basis (Commercial Properties Committee Practice Note 20).

Support for Larger Self-Catering Properties and B&Bs

Details of support for larger self-catering properties and B&Bs paying council tax have been confirmed by Tourism Secretary Fergus Ewing.

The £7 million Large Self-Catering Grant and the Exclusive Use Grant was announced as part of the £104 million tourism and hospitality package in December. Eligible self–catering businesses will be able to apply for one off grant support of £2,000. Eligible exclusive use premises will be able to apply for £10,000 in grant support.

All self-catering properties, B&Bs and guest houses that are eligible at Level 4 for Non Domestic Rates relief can now apply to the Strategic Framework Business Fund, which provides grants for businesses required to close by law as a result of COVID-19 restrictions. In most cases this will be payments of £2,000 every four weeks.

Mr Ewing confirmed that support equivalent to the Strategic Framework Business Fund will also now be available to B&Bs which do not pay Non Domestic Rates but pay council tax. This support will be paid by local authorities.

Following the announcement that islands businesses will receive support equivalent to Level 4 and top-up payments for Hospitality, Retail and Leisure, local authorities will be paying the equivalent of up to £3,000 every four weeks to self-catering and other accommodation providers on the islands, details of which will be published shortly. If they meet the criteria, they will also be eligible for the Large Self-Catering Grant (seven or more guests) and the Exclusive Use Grants.

Tourism Secretary Fergus Ewing said:

“It is clear that some larger self-catering properties have been uniquely impacted, initially by the rule restricting the number of guests to six from two households, and then by the single household rule.

“I am pleased to confirm the details of this extra support for self-catering businesses. This will be targeted directly where it is needed most, to those self-catering businesses that have been severely impacted by the restriction on household numbers. All self-catering and other accommodation providers are already in scope for regular payments from the SFBF and I would encourage business owners to make sure they have registered with their local authority for this support.”

Background

To be eligible for the support self-catering businesses must by on the NDR roll, and must be recorded by the rates assessor as sleeping seven or more guests.

To be eligible for exclusive use self-catering support, self-catering businesses must be listed on the NDR roll, as ‘exclusive use accommodation’.

Details of how to access the Large Self-Catering Grant and the Exclusive Use Grant, and support for B&Bs paying Council tax rather than NDR, will be published in Find Business Support shortly.

Marc Crothall, Chief Executive of the Scottish Tourism Alliance said:

“Today’s update regarding the funds which were announced by the Cabinet Secretary on 21st December, providing firm dates as to when applications can be submitted by various sectors within Scotland’s tourism industry is hugely welcomed, and provides the timeline that businesses have been urgently seeking. 
 
I know that representatives of the industry have also been very appreciative of the fact that they have been given the opportunity to work with representatives of Scottish Government, VisitScotland and the enterprise agencies to shape the criteria of the various funding schemes to ensure that this support reaches the businesses who need it most at what is undoubtedly the darkest period our industry has ever experienced.
 
The STA will continue to work closely with the Scottish Government, VisitScotland and industry over the coming weeks to ensure that all businesses which are eligible to access support are doing so as efficiently and as quickly as possible and we will continue to make direct representation to ministers in both Scottish and UK governments for what is without question, a need for a further package of continued financial support and other forms of fiscal relief.
 
We will also continue to make the point that support will be required until such time the tier restrictions are relaxed sufficiently to allow businesses to trade to a level that they can meet their overheads and remain solvent.”