Pressure on UK Government to deliver more financial support as Omicron cases surge
First Minister Nicola Sturgeon has announced the breakdown of a lifeline £100 million financial package to support businesses experiencing cancellations due to the rapid spread of the new Omicron variant.
The £100 million support package is broken down into:
- £66 million for eligible hospitality businesses
- £20 million for the culture sector
- £8 million for food and drink supply chain businesses including wholesalers
- £3 million for the wedding sector
- £3 million for the worst affected businesses in the tourism sector, including international inbound tour operators
Final details of the funding available and how to apply is being determined in discussion with business organisations and will be published next week.
Eligible hospitality businesses will be contacted directly by their local authorities and will not need to apply for support.
Food and Drink wholesalers can apply for funding through a re-run of the Scottish Wholesale Food and Drink Resilience Fund in January 2022.
Guidance has also been published to enable businesses to take reasonable measures to limit the rapid spread of the Omicron variant.
First Minister Nicola Sturgeon said: “The steps we are asking people to take are already having a severe economic impact, particularly for sectors like hospitality and culture, which have been badly affected by previous waves of Covid and were hoping for a better Christmas period this year. This is why we have found £100 million to help businesses in those sectors.
“The support we’re providing is significant – but we know it won’t fully compensate for the impact of Omicron. Business now needs the type and scale of financial support that was available earlier in the pandemic and that can only come from the UK Government – which has borrowing powers that the Scottish, Welsh and Northern Irish governments do not.
“The best way to support business sustainably, is to get the virus back under control. Please get your boosters and stay at home as much as possible just now.”
Downing Street confirmed that The First Minister spoke with Prime Minister Boris Johnson later in the afternoon.
In a statement, the PM’s office said:
‘The Prime Minister has spoken to First Minister Nicola Sturgeon this afternoon to discuss the ongoing response to the Omicron variant.
The Prime Minister and the First Minister agreed on the importance of close collaboration for the benefit of citizens across the UK.
They discussed the shared challenges including the economic disruption caused by Covid and will continue to work together.
The Prime Minister confirmed UK Government will be convening a COBR meeting over the weekend with counterparts from the devolved administrations to continue discussions.
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