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Over 54,000 Scottish SMEs fear closure from second UK lockdown

An estimated 35,070 Scottish SME*s (small and medium-sized enterprises) say it is likely their business will close permanently in the next 12 months as a result of the coronavirus crisis, with this figure rising to 54,776 in the event that a second national lockdown is introduced, according to a recent survey by Virgin Money*.

The research is reported in the latest Virgin Money Business Pulse, which provides a comprehensive insight into the performance of the UK’s SMEs and the environment in which they operate.

Across the UK as a whole, the survey, which was conducted in early September, revealed that almost one million SMEs fear they could close if there was a second lockdown. Two-thirds (66%) of SMEs said their profits were lower in April because of COVID-19 disruptions, including 21% whose profits took a hit of more than 50%. 

Despite lockdown restrictions easing over the summer months, 64% of profits SMEs’ profits over the past 30 days decreased due to coronavirus-related disruption, compared to expected profits for this period prior to the outbreak of the pandemic. 55% of these businesses believe it will take more than six months for profits to recover to pre-lockdown levels.

Underlining the continuing precarious situation for SMEs, 17% of businesses say it is very likely or somewhat likely they will be forced to close permanently in the next 12 months.  This number rises to almost a quarter (24%) when considered in the context of a potential second national lockdown, similar to that seen in March and April.

A key turning point for SMEs will be the closure of the Coronavirus Job Retention Scheme at the end of October.  42% of SMEs (excluding sole traders) expect their workforce to be smaller in December than it is in September. The new Job Support Scheme coming into force on 1 November is less generous than the furlough scheme, and so represents a significant withdrawal of fiscal stimulus.

However, the survey also uncovers some positives, with 15% of SMEs stating their profits were unaffected during lockdown and 10% noting their profits were higher, as demand for specific products, such as food and PPE, increased. 

In addition, the lockdown has prompted almost a quarter (23%) of SMEs to update their strategy, 21% to reshape their vision, and 12% have improved existing products and services.

The Virgin Money Business Pulse covers the first half of 2020, which captures the start of the COVID-19 crisis. 

The scale of the challenges experienced by SMEs is reflected in the Virgin Money Business Pulse, which fell to its lowest ever level of 32.9 in the second quarter of 2020. 

This was driven by record-low scores in the revenue, GDP and capacity indicators, although gains were made in the business costs and lending indicators.

Rock bottom commodity prices and falling wages have provided some relief to SMEs in the form of declining business costs.  Similarly, government-backed loans as part of the fiscal response to the pandemic, led to a record jump in SMEs’ borrowing, which has improved the lending indicator.

Elsewhere in the Virgin Money Business Pulse, the new Regional Rebalancing Tracker, which records regional economic inequalities in the UK, reveals the economic divide between London and the South East and the rest of the UK has continued to widen in the past six years. 

Scores are calculated based on a region’s convergence to the level of economic prosperity and opportunity in London and the South East.  The tracker reached a record low of 38.6 points in Q2 2020, with the lowest levels of convergence in the North East of England and the East Midlands.

Scotland’s individual Regional Rebalancing score was 37.6 in Q2 2020, with a weak rate of business creation weighing on the overall score. Productivity in Scotland is, however, the highest in the UK outside of London and the South East.

It is estimated that in 2020, workers in London and the South East generated on average £37.69 per hour worked. In Scotland, the corresponding figure is £30.13. This means that for every pound of output generated by workers in London and the South East, workers in Scotland generate an estimated 80 pence in the same amount of time.

Gavin Opperman, group business director at Virgin Money, said: “The results make for sober reading, but they are unsurprising given the extraordinary disruption of the last six months. 

“The COVID-19 pandemic has caused the deepest recession on record and recovery is slow, despite the national GDP figures regaining ground.  The UK’s SMEs have experienced unprecedented strain, with sales and profits affected by workplace closures, supply chain disruption, diminished productivity and declining household incomes.

“Despite the pickup in economic activity in the summer months, businesses are by no means out of the woods.  As we head into the autumn and winter months with newly introduced restrictions, the next six months will be critical for many businesses. 

“SMEs have shown tremendous resilience and innovation this year, with some excellent examples of creativity to pivot business models and maintain operations.  But there is no doubt there are tough times ahead.

“On a brighter note, the pandemic may offer SMEs the chance to continue longer-term with the new and more flexible work patterns the pandemic necessitated, helping to rebalance the spread of wealth and opportunity across the country.

“We will continue to focus on how we can best support the businesses we work with. The future is always hard to predict, perhaps more so now than ever, but we will aim to be the best partner we can be as the UK navigates through the economic recovery from the pandemic”.

*Calculated by The Centre for Economics and Business Research (CEBR), with research conducted by Censuswide from 04/09/20 to 07/09/20, with 501 SME decision makers

A Just Capital? Edinburgh Poverty Commission launches final report

Today, the Edinburgh Poverty Commission launches it’s final report, A Just Capital: Actions to End Poverty in Edinburgh.

In this blog, EPC Chair Dr Jim McCormick (below) sets out the Commission’s journey, what we have learned along the way, and what we are calling for next:

Our Call to Action in Edinburgh comes after almost two years of conversations across the city: with people experiencing poverty, the community anchors that support them, keyworkers, employers, councillors, public service officials, housing providers and taxi drivers.

This rich process has uncovered new insights on how poverty is experienced in Scotland’s capital city – some arising directly from the COVID-19 pandemic – but more stemming from long-established struggles. We set out much of what we had learned about the immediate impact of Covid in our interim report in May.

Since then, we have maintained a clear focus on addressing the root causes of poverty as well as mitigating the consequences. We have discovered common ground among people with different experiences and in different sectors: that poverty in Edinburgh is real, damaging and costly – but also that, despite the powerful currents that threaten to drive us further off course, there is enough determination in the city to embrace the twin challenges of solving poverty and reducing carbon emissions over the next decade.

We have identified six broad areas for action and one cultural challenge that should serve as a lens through which each action should be approached.

Our first proposition is that Edinburgh will only succeed in creating a prosperous city without poverty if it creates the conditions for good jobs, genuinely affordable housing, income security and meaningful opportunities that drive justice and boost prospects – above all, in the city’s schools.

In addition, a much sharper focus on connections across the city is needed – via digital participation, cheaper transport and creating neighbourhoods that work. These actions combined will flow through to reduced harm to people’s physical and mental health. Emergency food support should not become locked in as a fourth emergency service but serve as a gateway to other support that will ease isolation and build human connection and kindness where it has been lacking.

The common challenge running through all of our work is a cultural one. We call on the City Council and its partners in all sectors to shift towards a relationship-based way of working which gets alongside people and communities in a holistic way.

The experience of poverty is too often one of stigma, being assessed, referred and passed from pillar to post – a separate service and multiple workers for each need. This radical move would see public servants authorised to put poverty prevention at the heart of their day-to-day work.

It will mean new relationships with citizens, employees and third sector partners. It will take visible leadership and longer-term financial commitment. There are green shoots in Edinburgh and examples from beyond Scotland demonstrating how better outcomes for families can be achieved and fewer resources locked into multiple complex systems.

We call this ‘the right support in the places we live and work’ to signal the importance of local access to multiple forms of support under one roof and within walking or pram-pushing distance – for example money advice and family support offered in nurseries, schools, GP surgeries and libraries.

None of these challenges are new. The City Council and its partners can point to significant investment in recent years to turn the tide on poverty. But we are not persuaded that actions have been consistent, at scale, sustained over time or have poverty reduction as part of their purpose.

While Edinburgh has many of the powers to go further, we are not persuaded that it can deliver on the required social housing expansion without a new funding deal with the Scottish Government.

This is urgently needed to boost investment and to help unlock the supply of land at a reasonable price. Almost one in three families in Edinburgh in poverty are pulled below the water line solely due to their housing costs.

That compares with one in eight households in poverty across Scotland. Solving the city’s housing crisis will go a long way to delivering on affordable housing ambitions for the country as a whole.

At the same time, the UK Government has a critical role in creating an income lifeline for families in and out of work, by maintaining the currently temporary increase in Universal Credit and Local Housing Allowance – both of which have become more significant as a result of damage to Edinburgh’s job market since March. 

This Call to Action is not a list of recommendations or a menu of options. Reflecting our lives, each area is connected to the others. A plan for housing makes little sense in isolation from a plan for schools. Developing skills for employment will fall short if basic needs for secure, decent housing and food are neglected.

Nor is the ten-year horizon a get-out clause. We have worked on this basis because Scotland has committed to a significant cut in child poverty by 2030 and because many of the city’s existing plans run to the same schedule. We call on the City Council and the wider Edinburgh Partnership to set out its initial response by Christmas, as part of a first year of planning and early implementation.

And we are leaving a legacy through a new independent network, End Poverty Edinburgh. Led by Commission member Zoe Ferguson and our partners at Poverty Alliance, this brings together a core group of residents with first-hand experience of living on a low income and allies who want to be part of shaping the solutions.

Inspired by a similar approach in Edmonton (Alberta), they will stress test this report, challenge and add their own ideas, work with city partners to achieve progress but also hold the city to account on its response.

I want to thank everyone who contributed to our work in the hard graft of sharing painful stories, completing surveys and through organised and chance conversations.

Each member of the Commission gave their time, energy and ideas generously and for longer than originally asked. The quotes in this report reflect only a little of their brilliant contributions. Our work – and this report – was only possible due to the skill, care and patience brought by our secretariat team of Chris Adams, Nicola Elliott, Ciaran McDonald, and Gareth Dixon.

We have listened, been shocked and inspired – I hope we have done justice to what we have learned. Our Call to Action sets out something beyond hope: it is an expectation of what the city can and must now achieve.

Dr Jim McCormick, Chair of Edinburgh Poverty Commission

Read the final report here and the supplementary data and evidence paper here.

Protecting Scotland’s marine environment

New deep sea Marine Protected Area to be established

Europe’s largest Marine Protected Area (MPA) has been announced by Natural Environment Minister Mairi Gougeon.

The new MPA, off the West of Scotland, will give additional protections to some of the deepest parts of Scotland’s seas, protecting Scotland’s unique deep sea marine ecosystems.

The addition of the site will mean more than 30% of Scotland’s seas are now covered by MPAs, taking Scotland past the proposed new global target for 2030 currently being negotiated by the UN Convention on Biological Diversity. The designation of this site is part of a final package of MPAs that aim to reach the international target of 10% global MPA coverage by the end of 2020.

The West of Scotland MPA covers an area of over 100,000 square kilometres, making it the largest MPA located in national waters in the entire North-East Atlantic.

Featuring the deepest parts of Scotland’s seas at over 2,500 metres, the site will safeguard some of the most vulnerable habitats and species on the planet, including deep sea sharks, coral gardens and a diversity of other fauna.

Ms Gougeon said: “Scotland’s deep sea waters are home to a number of threatened species and habitats including coral gardens and deep sea sharks.

“The designation of this site will address one of the last gaps in our MPA network and will be key in achieving the international target of 10% of the world’s oceans covered by an MPA by the end of 2020.

“It also clear evidence of Scotland’s commitment to lead by example internationally on environmental protection. 

“Protecting Scotland’s marine environment is crucial for supporting the sustainable recovery of our marine industries. This designation will also form a key element of our Blue Economy Action Plan, which we committed to developing in our Programme for Government.”

Heart Research UK Healthy tip – Reduce red and processed meat

Heart Research UK Healthy Heart Tip, written by Dr Helen Flaherty, Head of Health Promotion at Heart Research UK

Reduce red and processed meat

Meat and fish are excellent sources of protein as well as some vitamins and minerals. However, many red and processed meats are high in saturated fat. Too much saturated fat in the diet can raise the amount of LDL cholesterol (also known as bad cholesterol) in your blood.

High LDL (bad) cholesterol increases your risk of heart disease. The NHS recommends a daily meat intake of no more than 70 grams. Reducing your intake of red and processed meats will not only benefit your health, but it is also good for the environment.

We have some tips to help you reduce your red and processed meat consumption:

What are red, white and processed meats?

Red meat includes beef, lamb and pork and it tends to be higher in saturated fat. White meat, such as chicken and turkey are lower in total fat and saturated fat. Processed meat includes smoked, cured and preserved meats, such as bacon, salami, sausages and ham.

What are the pros and cons of eating meat?

You do not have to eat meat in order to get all the nutrients you need to stay healthy. The table below highlights some of the positive and negatives of meat consumption.

Positives

  • Meat is high in protein, which is essential for growth and repair. Protein provides the body with energy and it can keep you feeling fuller for longer.
  • Animal products contain vitamin B12 and red meat is also a good source of iron.
  • Vitamin B12 and iron are important in the production of red blood cells and for transporting oxygen around the body.

Negatives

  • Red and processed meat can be high in saturated fat, which increases the likelihood of having raised LDL (bad) cholesterol in your blood. This can lead to a blockage in the coronary arteries, the vessels which supply your heart with blood.
  • High red and processed meat consumption is also associated with increased rates of bowel cancer.
  • Eating a lot of meat has a negative impact on the environment. 

Take a break from red and processed meat once a week

Don’t feel pressured to cut out all meat from your diet. If you tend to eat red and/or processed meat most days, why not challenge yourself to one meat-free day every week? Try searching online or in cookbooks for meat-free recipes.

You can also get some inspiration by visiting: https://www.meatfreemondays.com/

Switch to white meat or fish

If you eat a lot of red and processed meat, try switching to chicken, turkey or fish instead. This will help to reduce your saturated fat intake. Aim to eat two portions of fish every week, one of which should be an oily fish. Oily fish, such as salmon, sardines and mackerel, contain omega-3 fatty acids which help to keep your heart healthy.

Try some vegetarian alternatives

Meat substitutes, such as vegetarian sausages, mince and burgers are lower in saturated fat compared to equivalent meat products. Explore different meat substitutes and find out which you like, you might surprise yourself!

Keep an eye on the food labels as some meat substitutes are high in calories and salt.

If you’re not a fan of ‘fake meat’ you could try products made with beans, pulses and nuts as these are all good sources of protein. If you do not eat oily fish, you can get omega-3 fatty acids from nuts and seeds, such as walnuts and pumpkin seeds.

You can find more healthy tips, recipes and advice at heartresearch.org.uk.

Emergency funding support for Edinburgh theatres

Performing arts venues across Edinburgh and the Lothians have received £1,325,698 from the open call for applications to the Scottish Government’s Performing Arts Venues Relief Fund through Creative Scotland.

Awards made to Edinburgh and the Lothians performing arts venues as part of the £5million open call are as follows: 

  • Assembly (The Roxy), £85,000 
  • Capital Theatres Trust (Festival Theatre and King’s Theatre), £250,000 
  • Edinburgh City Council (Usher Hall), £240,450 
  • Howden Park Theatre, £95,000 
  • Leith Theatre, £138,214 
  • Out of the Blue, £67,034 
  • Queen’s Hall, £175,000 
  • The Brunton Theatre, £250,000 
  • The Regal, Bathgate, £25,000 

Designed to support performing arts venues that cannot yet re-open due to the ongoing impact of the Covid-19 pandemic, the Fund is helping to:  

  • Remove the threat of insolvency prior to the end of March 2021 to enable the development and delivery of activity as soon as practicable  
  • Allow for specialist / core staff to return from furlough or avoid redundancy to work on future sustainable activity plans   
  • Increase commissioning and employment opportunities for freelance artists and creative practitioners (between now and end of March 2021) to support continued public engagement while closed    

Iain Munro, CEO, Creative Scotland said: “Despite the ongoing, detrimental impact that the Covid-19 pandemic is having on Scotland’s performing arts venues, and on culture as a whole, it is positive that we can offer some funding to help venues navigate these extremely challenging times.

“I’m also encouraged to see that this funding will help venues across many different parts of Scotland where they form such an important part of the cultural life of local communities.”  

These venues are among 59 across Scotland sharing a total of £4.74million from the Scottish Government’s Performing Arts Venues Relief Fund’s £5million open call. A full list of all 59 venues can be found on the Creative Scotland website.   

Jude Henderson, Director of the Federation of Scottish Theatre (FST) said: “We welcome the announcement of these emergency awards to performing arts venues across the country.

“The funds will help to support the vital work they do in serving communities, providing employment and showcasing Scotland’s world class theatre and dance offer, much of which is created by our members.” 

Today’s news follows the £1,719,000 previously awarded to venues across Edinburgh through the targeted strand of the fund, including Dance Base, Royal Lyceum Theatre Company, The Storytelling Centre/TRACS and Traverse Theatre. 

The Performing Arts Venues Relief Fund is one of a series of measures being put in place to help mitigate the immediate impacts of COVID-19 on the creative and cultural sector, including five new emergency funds which were announced by the First Minister on Friday 28 August and are being delivered through Creative Scotland as follows:  

  • The £15million Culture Organisations and Venues Recovery Fund, which opened for applications on Thursday 17 September, with a deadline of Thursday 24 September.  
  • The £3.5million Independent Cinemas Recovery and Resilience Fund, which opened for applications on Monday 14 September with a deadline of Monday 5 October.  
  • The £5million Creative Freelancer Hardship Fund, for which we issued an open call for partner organisations to help us distribute this fund, was launched on Friday 11 September, and has a deadline of Friday 25 September. We aim to be able to distribute funds from October. The Screen element of these Hardship Funds opened for applications on Tuesday 22 September.  
  • The £5million Sustaining Creative Practice Fund includes £1.5million for the Culture Collective programme, mentioned in the Scottish Government’s Programme for Government, supporting organisations employing freelance artists to work in and with communities across Scotland. The remaining £3.5million has been added to Creative Scotland’s existing Open Fund which is open for applications from individuals now.   

The previously announced £2.2million Grassroots Venues Stabilisation Fund has reached 72 venues across. Recipients were published on Tuesday 22 September and full information on awards made, can be found on the Creative Scotland website.  

Updates on all emergency funds are being published regularly on the Creative Scotland website and publicised through media and social media communications.  

Helping communities through the pandemic

Funding to continue into recovery phase

The Scottish Government has now committed more than £350 million to support communities during the coronavirus (COVID-19) pandemic.

Since March, this funding has enabled councils, charities and community groups to be flexible and respond swiftly to help people impacted economically or socially, including those struggling to access food at the height of lockdown.

The package included over £120 million to tackle food insecurity, with £12.6 million making sure 175,000 children and young people were able to access free school meals over the summer holidays.

£22 million funding was made available through the Third Sector Resilience Fund, as part of £80 million allocated to third sector and community organisations. As outlined in the Programme for Government, £25 million will now be focused on a new Community and Third Sector Recovery Programme.

This will include business support and investment to help organisations adapt to new ways of working and become sustainable, as they continue to support people and communities in response to the ongoing impact of the pandemic.

Communities Secretary Aileen Campbell said: “We have now invested more than the initial £350 million communities funding we announced in March to support people through this public health crisis.

“Our funds have supported people shielding, or struggling with food insecurity, or maintaining free school meals. In addition over 14,000 jobs were safeguarded with £22 million funding through the Third Sector Resilience Fund, and funding was made available for the new Connecting Scotland project to get people online and stay connected.

“This significant funding package has been instrumental in protecting the health, welfare and wellbeing of people throughout the Covid-19 pandemic. Organisations across all sectors have stepped up and worked together to ensure our communities are supported throughout this time and I want to thank them for all their efforts. 

“Working collaboratively with local government, the third sector, business and communities has produced inspiring, collaborative, locally-based responses to the pandemic and we will learn from that as we continue into recovery.”

Michelle Carruthers, CEO of The Food Train charity, said: “The funding provided to Food Train allowed us to respond to a 70% increase in older people needing help to access food during the pandemic.

“Food Train has been helping more than 3,200 older people during the pandemic. The funds were used to provide temporary extra delivery vehicles, extra local staff, more shopping boxes and safety kits for the staff and volunteer teams to help keep everyone safe.

“We were also able to set up COVID-19 check-in calls, making more than 9,000 calls in five months where approximately a third of the members getting regular calls were shielding.”

Read the full text of the Cabinet Secretary’s letter to the Local Government and Communities Committee.

Witness appeal following serious assault in Morrison Street

Detectives in Edinburgh are appealing for witnesses following a serious assault in the Haymarket area on Sunday (20 September 2020).

Police were called to Morrison Street around 10pm after a 27-year-old man was attacked by a group of four men. Emergency services attended and the victim was taken to the Edinburgh Royal Infirmary for treatment to serious facial injuries.

The suspects are believed to have made off along Morrison Street and onto Torphichen Place.

The first man is described a white, aged 20-30, of slim build, with dark hair and dark facial hair. He was wearing a black hoodie and black bottoms.

The second man is described as white, aged 20-30 and wearing a grey hoodie. He was carrying a black rucksack and a skateboard.

The third man is described as white, aged 20-30 and had a bag and skateboard.

The fourth man is described as white, aged 20-30 and wearing a dark hoodie, dark joggers and white trainers.

All four men wore face coverings.

Detective Constable Oliver Healy of Gayfield CID said: “We believe this to be a targeted attack on the victim who has been left with significant facial injuries.

“Extensive enquiries are ongoing to trace the individuals involved, with officers speaking to local residents and businesses as well as examining CCTV.

“There were several passers-by in the area at the time of the incident and I would urge anyone who saw what happened, and it yet to speak to police, to get in touch.

“I would also ask any motorists with dash-cams who were in the vicinity to please check their footage in case they have captured anything which could assist the investigation.

“Anyone with information should contact police on 101, quoting reference number 3946 of Sunday 20th September 2020. Alternatively Crimestoppers can be contacted on 0800 555 111, where anonymity can be maintained.”

Chancellor announces new Jobs Support Scheme

Chancellor Rishi Sunak has outlined his Winter Economy Plan at Westminster

Mr Speaker, Thank you for granting me permission to make this Statement to the House today.

Earlier this week the Prime Minister set out the next stage of the government’s health response to Coronavirus.

Today I want to explain the next phase of our planned economic response.

The House will be reassured to know I have been developing plans to protect jobs and the economy over the winter period.

Plans that seek to strike the finely-judged balance between managing the virus and protecting the jobs and livelihoods of millions.   Mr Speaker,

I know people are anxious, and afraid, and exhausted, at the prospect of further restrictions on our economic and social freedoms.

I share those feelings, but there are reasons to be cautiously optimistic.

We are in a fundamentally different position than we were in March.

And we now know much more about this virus.

Public awareness of the risks, and how to mitigate them, is far greater.

And we have met our promise to give the NHS whatever it needs, with significant new funding for NHS capacity, for PPE, and, I can inform the House today, we have now provided over £12 billion for test and trace.

In economic terms, while our output remains well below where it was in February, we have seen three consecutive months of growth.

And millions of people have moved off the furlough and back to work.

But the resurgence of the virus, and the measures we need to take in response, pose a threat to this fragile economic recovery.

So our task now is to move to the next stage of our economic plan, nurturing the recovery by protecting jobs through the difficult winter months.

Mr Speaker, The underlying rationale for the next phase of economic support must be different to what came before.

The primary goal of our economic policy remains unchanged: to support people’s jobs.

But the way we achieve that must evolve.

Back in March, we hoped we were facing a temporary period of disruption.

In response, we provided one of the most generous and comprehensive economic plans anywhere in the world with £190 billion of support for people, businesses and public services, as we protected our economic capacity.

It is now clear, as the Prime Minister and our scientific advisers have said, for at least the next six months the virus and restrictions are going to be a fact of our lives.

Our economy is now likely to undergo a more permanent adjustment.

The sources of our economic growth and the kinds of jobs we create, will adapt and evolve to the new normal. And our plan needs to adapt and evolve in response.

Above all, we need to face up to the trade-offs and hard choices Coronavirus presents. And, Mr Speaker, there has been no harder choice than the decision to end the furlough scheme.

The furlough was the right policy at the time we introduced it.

It provided immediate, short-term protection for millions of jobs through a period of acute crisis.

But as the economy reopens it is fundamentally wrong to hold people in jobs that only exist inside the furlough.

We need to create new opportunities and allow the economy to move forward and that means supporting people to be in viable jobs which provide genuine security.

As I’ve said throughout this crisis, I cannot save every business. I cannot save every job. No Chancellor could.

But what we can and must do is deal with the real problems businesses and employees are facing now.

In March, the problem was that we ordered businesses to close.

In response, we paid people to stay at home and not work.

Today, the problem is different.

Many businesses are operating safely and viably, but they now face uncertainty and reduced demand over the winter months.

What those businesses need is support to bring people back to work and protect as many viable jobs as we can.

To do that, I am announcing today the new Jobs Support Scheme.

The government will directly support the wages of people in work giving businesses who face depressed demand the option of keeping employees in a job on shorter hours rather than making them redundant.

The Jobs Support Scheme is built on three principles.

First, it will support viable jobs.

To make sure of that, employees must work at least a third of their normal hours and be paid for that work, as normal, by their employer.

The government, together with employers, will then increase those people’s wages covering two-thirds of the pay they have lost by reducing their working hours.

And the employee will keep their job.

Second, we will target support at firms who need it the most.

All small and medium sized businesses are eligible.

But larger businesses, only when their turnover has fallen through the crisis.

Third, it will be open to employers across the United Kingdom, even if they have not previously used the furlough scheme.

The scheme will run for six months starting in November.

And employers retaining furloughed staff on shorter hours can claim both the Jobs Support Scheme and the Jobs Retention Bonus.

Mr Speaker,

Throughout this crisis, we have sought parity between employees and the self-employed providing more than £13 billion of support to over 2.6 million self-employed small businesses.

So I am extending the existing self-employed grant on similar terms and conditions as the new Jobs Support Scheme …

Mr Speaker,

These are radical interventions in the UK labour market; policies we have never tried in this country before.

Together with the Jobs Retention Bonus, the Kickstart scheme for young people, tens of billions of pounds of job creation schemes, new investment in training and apprenticeships, we are protecting millions of jobs and businesses.

Mr Speaker, If we want to protect jobs this winter, the second major challenge is helping businesses with cash flow.

Over the last six months, we’ve supported business with tens of billions of pounds of tax deferrals and generous, government-backed loans.

Those policies have been a lifeline.

But right now, businesses need every extra pound to protect jobs rather than repaying loans and tax deferrals.

So I’m taking four further steps today to make that happen.

First, Bounce Back Loans have given over a million small businesses a £38 billion boost to survive this pandemic. To give those businesses more time and greater flexibility to repay their loans, we are introducing Pay As You Grow.

This means:

  • loans can now be extended from six to ten years – nearly halving the average monthly repayment
  • businesses who are struggling can now choose to make interest-only payments
  • and, anyone in real trouble can apply to suspend repayments altogether for up to six months

No business taking up Pay As You Grow will see their credit rating affected as a result.

Second, I am also changing the terms of our other loan schemes.

More than 60,000 Small and Medium sized businesses have now taken out Coronavirus Business Interruption Loans.

To help them, I plan to extend the government guarantee on these loans for up to ten years, making it easier for lenders to give people more time to repay.

I am also extending the deadline of all our loan schemes to the end of the year. And we are starting work on a new, successor loan programme, set to begin in January.

Third, I want to give businesses more time and flexibility over their deferred tax bills.

Nearly half a million businesses deferred more than £30 billion of VAT this year.

On current plans, those payments fall due in March.

Instead, I will allow businesses to spread that VAT bill over 11 smaller repayments, with no interest to pay.

And any of the millions of self-assessed income taxpayers who need extra help, can also now extend their outstanding tax bill over 12 months from next January.

The final step I’m taking today will support two of the most affected sectors: hospitality and tourism.

On current plans, their VAT rates will increase from 5% back to the standard rate of 20% on January the 13th.

So to support more than 150,000 businesses and help protect 2.4 million jobs through the winter I am announcing today that we are cancelling the planned increase and will keep the lower 5% VAT rate until March 31st next year.

Mr Speaker, Today’s measures mark an important evolution in our approach.

Our lives can no longer be put on hold.

Since May, we have taken steps to liberate our economy and society.

We did these things because life means more than simply existing.

We find meaning and hope through our friends and family, through our work, through our community.

People were not wrong for wanting that meaning, for striving towards normality, and nor was the government wrong to want this for them.

I said in the summer that we must endure and live with the uncertainty of the moment.

This means learning our new limits as we go.

Because the truth is the responsibility for defeating Coronavirus cannot be held by government alone.

It is a collective responsibility, shared by all.

Because the cost is paid by all.

We have so often spoken about this virus in terms of lives lost.

But the price our country is paying is wider than that.

The government has done much to mitigate the effects of the awful trade-offs between health, education and employment.

And as we think about the next few weeks and months, we need to bear all of those costs in mind.

As such, it would be dishonest to say there is now some risk-free solution.

Or that we can mandate behaviour to such an extent we lose any sense of personal responsibility.

What was true at the beginning of this crisis remains true now.

It’s on all of us.

And we must learn to live with it and live without fear.

I commend this Statement to the House.

EACC meeting cancelled

Edinburgh Association of Community Councils will now meet in October

We are sorry to notify CC members that we have decided to cancel the next meeting due to be held on Thursday 24th September 2020.

Unfortunately, due to holidays and other issues, we have not been able to tie up with speakers nor obtain sufficient information on current issues to make a meeting worthwhile for those representatives who normally attend. 

We are planning to hold a virtual meeting on Thursday 22nd October 2020 with a full agenda of items raised by representatives. It would still be helpful if issues of concern raised at CC meetings were notified to the Secretary in order that we can circulate relevant information to attendees.

We still proposed to hold an AGM on Thursday 19th November 2020.

We apologise for the late cancellation of next Thursday’s meeting.      

Kind regards

John Tibbitt

Chair, Edinburgh Association of Community Councils

chair@edinburghcommunitycouncils.org.uk

Scots encouraged to continue recycling to help the environment

RECYCLE WEEK 2020

Environment Secretary Roseanna Cunningham is reminding everyone of the importance of recycling to Scotland’s green recovery.

Green economic growth after coronavirus (COVID-19) is at the heart of the recently announced Programme for Government with £70 million being earmarked to improve waste and recycling infrastructure as part of it.

This  major investment is one of a number of initiatives planned to help increase recycling and build a circular economy.

These include Scotland’s Deposit Return Scheme which is expected to capture 90% of single-use aluminium and steel cans, glass and plastic bottles, and the introduction of legislation to increase the minimum price of carrier bags from 5p to 10p.

Ms Cunningham said: “Long-term initiatives to tackle our throwaway culture and encourage a circular economy – helping people to reduce, reuse and recycle – are vital to our green recovery and ensuring we end Scotland’s contribution to climate change completely.

“It is heartening to see that carbon emissions from Scotland’s waste has reached a record low – an achievement only possible by everyone doing their bit. By recycling more, we can reduce this even further and with 80% of our carbon footprint coming from products and materials we use, there is more we can do.

“I would encourage people and communities to get involved with this year’s Recycle Week. By working together, we can all do our bit to improve the environment, help fight climate change and enable Scotland to meet its net zero target by 2045.”

Iain Gulland, Chief Executive of Zero Waste Scotland, said: “Recycling as much as we can will reduce our carbon footprint and the materials we consume. We can do more by thinking differently, whether this is by re-evaluating how we work and live our day-to-day lives or by implementing new procedures to capture as much as we can from going to waste.

“We all need to play our part to tackle the climate crisis and make greater use of what we already have.”