Rates Relief Extended

In a statement to the Scottish Parliament today the Cabinet Secretary for Finance, Kate Forbes MSP, has confirmed that 100% non-domestic rates relief for the retail, hospitality, leisure and aviation sectors will be extended beyond the three-month commitment already made in the Scottish Budget 2021-22, and will cover all of the 2021-22 financial year.

This will include all the property uses that were eligible for relief last year (including newspaper publishing).

As already explained, this relief will be application-based in 2021-22. We are working with councils to ensure that application forms are available in advance of 1 April.

Tourism Question on Financial Support

Willie Rennie (North East Fife) (LD): To ask the Scottish Government whether it will review the financial support available to self-catering establishments, bed and breakfasts and guest houses. (S5O-05015)

The Cabinet Secretary for Rural Economy and Tourism (Fergus Ewing): All self-catering, B and B and guest house businesses in level 4 areas that pay non-domestic rates can apply for grants of £2,000 or £3,000—depending on rateable value—every four weeks from the strategic framework business fund. Equivalent support for B and Bs that do not pay non-domestic rates, but pay council tax, is also available.

Larger self-catering and exclusive-use properties will also benefit from an additional £7 million fund to mitigate the impact of the single household restrictions. Support packages have been designed in response to business needs and agreed with sector representatives, but we will continue to monitor tourism support needs.

Willie Rennie: I am sure that the cabinet secretary knows that there is real anger in the self-catering sector that the sector-specific support misses most of them out. Around 15,500 businesses will get nothing. For the small number of businesses that will get support, the fund has not yet opened. Many of them are on their knees, and are considering selling up already.The cabinet secretary is generous with his time and is open minded. I suggest that he urgently changes the scheme before it is too late.

Fergus Ewing: Mr Rennie raises a serious point. I am determined that all businesses whose trade has been terminated as a result of the Covid restrictions and which have been unable to offer their excellent hospitality and accommodation to their guests are supported. The problem is a serious one. I am not sure that I recognise the figures that Mr Rennie quotes, but I am happy to discuss the issue with him, as I already have done.

We believe that the funding that we have put in place is sufficient to provide lifeline support. We previously provided support for B and Bs that did not have business bank accounts, and we are extending the support to B and Bs that do not pay business rates, as I explained in my response to Mr Halcro Johnston. We paid support to self-catering properties last year. There is also the continuing entitlement to a payment of £2,000 or £3,000 every four weeks. As with all the schemes, that is designed to provide lifeline support to get people through.

I hope that we can safely resume the staycation market. If we can do so, many self-catering properties, B and Bs and guesthouses will be well placed to continue to offer an excellent experience. They did that last summer; indeed, self-catering units and caravan parks were allowed to open slightly earlier than the rest of the tourism sector.

I accept that those businesses are the backbone of our tourism sector, especially in rural Scotland. They must get sufficient support. I constantly review whether we are achieving that objective, working closely with people such as Fiona Campbell of the Association of Scotland’s Self-Caterers and David Weston of the Bed and Breakfast Association. I will continue that work.

https://www.parliament.scot/parliamentarybusiness/report.aspx?r=13117

Update from the Scottish Government on Tourism Support for Larger Self-Catering Premises, Exclusive Use Properties and B&Bs

This note relates to grant payment support for large self-catering properties, exclusive use properties and B&Bs announced on 21 January 2021 by the Cabinet Secretary for Rural Economy and Tourism.[1]

Holiday accommodation providers, including self-catering properties, exclusive use properties, B&Bs and other accommodation types required to close under The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020, and liable for Non Domestic Rates are already eligible for grants under the Strategic Framework Business Fund, and should apply to their Local Authority to get this.[2]

In addition certain types of self-catering and exclusive use accommodation, and B&Bs paying council tax, will receive tailored support, because of the unique impact on them, or their unique position (B&Bs),

For self-catering and exclusive use there is one-off additional support valued at £7 million comprising:

a.) The Large Self-Catering Grant which was originally announced by the Scottish Government as part of the £104 million tourism and hospitality package in December –  to be referred to, as required, as the ‘Large Self-Catering Grant’.

This fund has been designed in recognition that larger self-catering properties have been uniquely impacted by the single household rule introduced on the 23rd of September.

Self-catering businesses are eligible to apply if they have a property which accommodates 7 or more people for which they pay Non Domestic Rates.  The number of bed spaces will be linked to records held by Rates Assessors.  The large self-catering grant will make one off payments of £2,000 available to eligible applicants.

Please note – The application process for this fund is not yet live, and further details on where and how to apply will be provided asap – see below.

b.) The Exclusive Use Grant which was announced as part of the same package above in December – to be referred to: as required, as the ‘Exclusive Use Grant’.

In recognition of the restrictions on gatherings and the one household rule for self-catering accommodation, Exclusive use properties are eligible to apply for one off grants of £10,000 if they pay Non Domestic Rates and have been evaluated by the Scottish Assessors Association[3] as an Exclusive Use Venue providing overnight accommodation, either in their main building or in lodges at the property or a combination of both.

Please note – The application process for this fund is not yet live, and further details on where and how to apply will be provided asap – see below.

For B&Bs paying council tax there is additional support valued at £1m every 4 weeks to be referred to: as required, as the ‘Support for B&Bs paying Council Tax Grant’.

c.) Support for Bed & Breakfasts paying Council Tax Grant

Further support will be provided to eligible  B&Bs which do not pay Non Domestic Rates, but pay council tax.  The Strategic Framework Business Fund (SFBF) provides grants for NDR paying businesses required to close by law as a result of COVID-19 restrictions.  B&Bs paying council tax will get equivalent support comprising  £2,000 every 4 weeks.

d.)  Islands businesses in Level 3 are also eligible for support to the equivalent of Level 4 Strategic Framework Business Fund.  Eligible businesses will be able to access the funds outlined above as well as, where applicable.

Coronavirus (COVID-19): Strategic Framework Business Fund – gov.scot (www.gov.scot)

Operational arrangements for these funds will go live in February.  Further detail will be announced on Find Business Support Find business support in Scotland – Find Business Support.  Please note that businesses operating without a business bank account but meeting other key eligibility criteria will be eligible for support. 

Business are asked NOT to contact their local authority about the Large Self-Catering, Exclusive Use and Support for B&Bs paying Council Tax Fund at this point, but to monitor Find Business Support Find business support in Scotland – Find Business Support, for more details.  Information on when and how to apply will also be shared via stakeholder groups in due course.   

[1] Scotland’s Economy Support for larger self-catering properties and B&Bs – Scotland’s Economy (blogs.gov.scot)

[2] Eligibility for the Strategic Framework business fund is based from The Health Protection (Coronavirus) (Restrictions and Requirements) (Local Levels) (Scotland) Regulations 2020, and only business premises that are specified here to close or modify operations are eligible.

[3] R2017 Valuation of Exclusive Use Venues (saa.gov.uk)