Tag: business support

£4.6 billion in new lockdown grants to support businesses and protect jobs

Businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000, the Chancellor has announced.

  • Chancellor announces one-off top up grants for retail, hospitality and leisure businesses worth up to £9,000 per property to help businesses through to the Spring
  • £594 million discretionary fund also made available to support other impacted businesses
  • comes in addition to £1.1 billion further discretionary grant funding for Local Authorities, Local Restriction Support Grants worth up to £3,000 a month and extension of furlough scheme

This follows the Prime Minister’s announcement last night that these business will be closed until at least February half-term in order to help control the virus, and, together with the wide range of existing support, provides them with certainty through the Spring period.

The cash is provided on a per-property basis to support businesses through the latest restrictions, and is expected to benefit over 600,000 business properties, worth £4 billion in total across all nations of the UK.

Chancellor Rishi Sunak said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

“Throughout the pandemic we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the Spring.

“This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen.”

A further £594 million is also being made available for Local Authorities and the Devolved Administrations to support other businesses not eligible for the grants, that might be affected by the restrictions. Businesses should apply to their Local Authorities.

The new one-off grants come in addition to billions of existing business support, including grants worth up to £3,000 for closed businesses, and up to £2,100 per month for impacted businesses once they reopen.

The government has also provided 100% business rates relief for retail, hospitality and leisure businesses, £1.1 billion existing discretionary funding for Local Authorities, the furlough scheme now extended to April and 100% government backed loans, extended until March.

Further information

  • the one-off top-ups will be granted to closed businesses as follows:
  • £4,000 for businesses with a rateable value of £15,000 or under
  • £6,000 for businesses with a rateable value between £15,000 and £51,000
  • £9,000 for businesses with a rateable value of over £51,000
  • business support is a devolved policy and therefore the responsibility of the devolved administrations, which will receive additional funding as a result of these announcements in the usual manner:
  • the Scottish Government will receive £375 million
  • the Welsh Government will receive £227 million
  • the Northern Ireland Executive will receive £127 million
  • this will contribute to the funding which has already been guaranteed by the UK Government, to continue to provide the devolved administrations the certainty they need to plan for their COVID-19 response in the months ahead
  • small businesses in the devolved administrations should also be able to benefit from other UK-wide measures in the government’s unprecedented package of support for business, including the various business lending schemes (where the repayment terms were made easier as part of the Winter Economy Plan), and the extension of the Self Employment Income Support Scheme

Additional £48 million for level 4 changes

Action to ensure businesses across Scotland impacted by level 4 restrictions get additional and faster access to financial support have been announced by the Finance Secretary Kate Forbes.

This is in addition to the £570 million package of support, including the Strategic Framework Business Fund which has been open since November.

Businesses that are required to close or modify their operations by law can apply for a Temporary Closure Grant or a Business Restrictions Grant through their local authority website. Grants of up to £3,000 are available for every four weeks of restrictions, payable in arrears while restrictions last.

An additional £41 million will top up support for non-essential retail and gyms, which are required to close in level 4. This is in addition to top up grants for hospitality that were announced earlier this month.

Non-essential retail and gyms will be given up to an additional £3,000 and can claim this funding through their local authority website if they have not already submitted an application.

The cap on the maximum support available through the Strategic Framework Business Fund will also be lifted from 1 January for businesses that operate from multiple premises.

To accelerate the distribution of financial support, a further £7 million will help all local authorities recruit additional staff or backfill positions to meet increased demand for coronavirus (COVID-19) grants and speed up the payment process.

Ms Forbes said: “With mainland Scotland now entering level 4, the Strategic Framework Business Fund is already open to businesses required to close or modify their operations by law.

“In recognition of the substantial increase in the number of businesses eligible for support, I have provided additional financial resources of £7 million to local authorities to upscale operations and streamline grants. Work is already underway to ensure businesses get support as quickly as possible.

“I recently announced a top up grant to hospitality businesses, and today I can confirm that a further top up grant will be provided to non-essential retail businesses and gyms.

“Since March the Scottish Government has allocated more than £2.3 billion to business support and more than £1.2 billion to economic recovery.

“On top of the additional £570 million package of support announced at the start of this month, these changes will manage that increased demand, accelerating the grant application process and in turn getting these essential payments to businesses as quickly as possible.

“We welcome the news of further consequentials and will set out shortly how these will be utilised to meet the needs of business. It is likely that a significant amount will be used to meet the substantial increase in businesses applying to the Strategic Framework Business Fund at Level 4.”

Edinburgh College provides free training to support businesses and staff

Edinburgh College is providing businesses across Edinburgh and the Lothians an opportunity to access training aimed at promoting positive mental health among all employees.

Recent research conducted by the Scottish Association for Mental Health (SAMH), published last week, shows that 50% of people with mental health problems have reported their mental health has been worse in the last few weeks than at the start of the coronavirus pandemic.

And while this statistic cannot be solely attributed to the isolation caused by the mass shift to home and remote working, employers do have a responsibility to ensure their teams have a work environment which is healthy for all.

Indeed, a recent study carried out in the United States by FlexJobs and Mental Health America (MHA) found that 75% of workers have experienced burnout in 2020, with 40% citing it as a direct result of the coronavirus pandemic with ongoing remote working appearing to be a contributing factor.

Edinburgh College’s Training and Development team is utilising financial support from the Scottish Government to offer free Mental Health and Resilience courses to businesses across Edinburgh and the Lothians to support their employees’ mental health – both inside and outside of the workplace.

Through the Flexible Workforce Development Fund, staff of all levels from firms of varying sizes can participate in courses including: Mental Health Awareness; Mental Health for Managers; Building Resilience; Understanding Depression and Anxiety, among many others. Bespoke training packages comprising elements from various courses can also be created to meet clients’ needs.

Prior to the COVID-19 pandemic, these courses would have been delivered on campus or at client offices, however the College’s Training and Development team has adapted to deliver courses via Zoom and Microsoft Teams – following the launch of its Virtual Professional Training Prospectus.

Edinburgh College has delivered 200 mental health training sessions in 2020. Since the start of term 2020/21 – August 2020 – 765 students have enrolled on mental health courses.

Edinburgh College Head of Commercial Jane Grant said: “Positive mental health is vital in all settings, including the workplace.

“Our team of expert trainers and lecturers are here to deliver training to support employers and employees in maintaining positive mental health across the organisation, particularly in the current times where teams and individuals are working in new and remote circumstances.”

Find out more about the Flexible Workforce Development Fund

Edinburgh College’s Training and Development team is holding an event to showcase the free training and development opportunities available to thousands of businesses across Edinburgh and the Lothians.

The virtual event will give businesses an introduction to the Flexible Workforce Development Fund (FWDF) – a fund which apprenticeship levy-paying businesses across the public, private and third sectors, can access to secure a wide range of training courses to help them to upskill and reskill their staff.

The event, which is taking place online via Zoom, is being held on Tuesday 1 December 2020 from 8.30-9.15am.

The College’s Training and Development team will deliver a short presentation on the fund before engaging in a question and answer session. Delegates will also hear from Kelly Cunningham of East Lothian Care and Accommodation Project (ELCAP) who will talk about her experience of utilising the FWDF to upskill and reskill her team.

Through the FWDF, businesses can apply for varying levels of funding towards training for their employees – up to £15k for apprenticeship levy-payers, and up to £5k for SMEs. This funding can be used by businesses of all different types.

Register your place for the Virtual Flexible Workforce Development Fund event here: 

https://www.eventbrite.co.uk/e/flexible-workforce-development-fund-event-tuesday-1-december-2020-tickets-129470918001

LaunchMe gears up for sixth intake of applications

LaunchMe, Scotland’s social enterprise accelerator has opened its sixth round of applications, looking for innovative social enterprises with the ambition to grow and achieve social impact at scale.

Delivered by social enterprise agency Firstport, LaunchMe supports social enterprises to grow by providing a comprehensive business support package, seed funding to get them investment ready and direct access to investor networks. Since 2014, the programme has helped 37 social enterprises to scale and increase their impact, 13 of them have gone on to raise over £1m of private investment.

Social enterprises, like most businesses, have suffered as a result of the pandemic. In Scotland, 97% of them reported negative impacts whilst experiencing a marked increase in the demand for their services at the same time. This is hardly surprising given that social enterprises operate in areas including mental health, social care, employability, and homelessness.

From providing emergency food aid and childcare to vulnerable children to mental health support and more, social enterprises have played a key role supporting the emergency and recovery efforts of the last six months.  While the future remains uncertain and a recession looms, backing social enterprises with the potential to scale seems more critical than ever before.

One LaunchMe participant that is ready to step up to the challenge is Brave, Strong, Beautiful, CIC (BSB).

Founded by Edinburgh-based Kerry Anderson, it is the only hair and beauty salon in Scotland providing training and employment opportunities for disadvantaged young people.

Despite being forced to close during the national lockdown, BSB is now ready to scale and plans to open two more salons in the next 12 months to provide training, employment and mental health support to disadvantaged and vulnerable young people living in areas of deprivation. With the unemployment rate at its highest level in three years and young people being particularly affected by this, social enterprises such as BSB are needed to tackle the challenges ahead.

Kerry Anderson, founder of Brave, Strong, Beautiful, CIC, said: “I set up Brave Strong Beautiful because I became aware that some young people were being overlooked by society. I realised that the most vulnerable were struggling to find training and gain employment whilst dealing with difficult home lives.

“Coming from a challenging background myself, I understand first-hand the difficulties young people face. This is why I decided to use my skills as a hairdresser, employment development worker and counsellor to offer opportunities for young people to gain a trade skill in hairdressing, whilst also offering a support package so we can ensure they achieve success.”

Josiah Lockhart, Chief Executive of Firstport, said: “LaunchMe has a well-established track record of supporting scaleable social enterprises to grow and increase their social impact.

“As the effects of the pandemic and lockdown measures continue to take hold, we need strong, adaptable, and resilient social enterprises to rise to the challenge and create social impact at scale. Whilst the future is uncertain, LaunchMe is well placed to provide the support that social enterprises need right now to pursue and achieve their growth plans in the future.”

Cabinet Secretary for Communities and Local Government Aileen Campbell said: “The Scottish Government is delighted to continue to support the LaunchMe accelerator programme.

“The Scottish social enterprise sector has seen consistent growth over the past decade and we continue our partnership with Firstport. At a time of unparalleled challenges across society, the social enterprise sector remains at the forefront as we move forward towards recovery, and LaunchMe is well placed to support social entrepreneurs and social enterprises.”

Margaret McSporran, Head of Social Enterprise Development, Highlands and Islands Enterprise, said: “The additional challenges we have faced this year have shown just how vital social enterprises are to the Highlands and Islands economy and to community resilience, particularly in some of our most rural areas.

“We very much welcome this latest round of applications for LaunchMe and would encourage innovative and ambitious social enterprises to consider applying.”

LaunchMe-A-Model-For-Scaling-UpDownload

Applications for LaunchMe are now open and close on Monday 14 December. More information is available on the Firstport website.

Restriction-affected Capital businesses encouraged to apply for coronavirus funds

Edinburgh businesses that have been affected by the current closures and restrictions can now apply for relief from the Coronavirus Restrictions Business Fund.

  • Businesses can apply for Scottish Government relief through Business Closure and Business Hardship Funds from 9am Tuesday 20 October
  • Scottish Government has made £40m available nationally to Scottish businesses impacted by the most recent set of restrictions that saw licensed premises close across Edinburgh

This follows the Scottish Government’s announcement on 9 October that £40m would be made available through one-off grants to support businesses directly impacted by the most recent set of restrictions.

Local businesses can apply online with the grants distributed by the City of Edinburgh Council.

The Business Closure Fund is a grant of up to £3,000 available to hospitality and other eligible businesses required to close (except for takeaways) by these new regulations. Up to £1,500 is available to businesses that are able to remain open but have been significantly impacted by the restrictions through the Business Hardship Fund.

The first round of applications for both funds is open to hospitality businesses that are required to close or operate in a restricted way due to the regulations and are able to evidence a minimum 25% reduction in turnover during the brake period.

Scottish producers or wholesale businesses supplying primarily short-life goods or products to hospitality businesses and some gyms that can show the same reduction in turnover will also be able to apply for the Business Hardship Fund.

Retail and businesses that provide takeaway food as the core and established basis of their operations are not eligible for these closure or hardship funds.

The Scottish Government will also work with business and sector representative organisations to provide additional support through a new £11 million contingency fund for businesses that need support but do not qualify for either of the new Funds.

Council Leader Adam McVey said: “Our local businesses have been fantastic during the last seven months but there’s no getting away from how difficult this situation is and now more than ever it is imperative that we continue to support Edinburgh’s local traders.

“This funding is to help our businesses survive and to enable them to thrive when they’re able to trade again as normal. Our team are ready to process applications quickly to make sure businesses get this support as fast as possible.

“As well as helping our local businesses access the Scottish Government Funds, we’re looking at other actions we can take to build on the continued support we have been providing since the start of the lockdown.

“Again, I encourage everyone to support where they can: visit your local cafes and unlicensed premises, look out for your neighbours and continue to follow the public health guidance provided.”

Depute Leader Cammy Day said: “Edinburgh’s local economy has been hard hit and we need to do everything we can to support them during this incredibly difficult time.

“We are working with the Scottish Government to help our affected local businesses access the funding that has been made available to them and will continue working with them and other partners throughout our ongoing response to and recovery from Covid-19.

“We have to double down on our efforts to support local industries, businesses and jobs in the best way we can: by coming together as one Team Edinburgh and supporting our local businesses and communities.”

The Council has taken previous steps to promote a sustainable economic recovery and support small businesses throughout the pandemic, including:

  • Awarding £112.5m in more than 9,000 Government funded Coronavirus Business Support Grants to local businesses
  • Supporting businesses to gradually reopen safely with a ‘Ready, Set, Go’ advice service, including guidance provided to 20,000 business owners
  • A more flexible approach to licensing to help more businesses apply to use outdoor space
  • Accelerating plans to use the Council’s supply chains to better support local business and stimulate economic growth
  • Creating more space for people to travel to businesses safely and enjoyably through the Council’s Spaces for People initiative, with priority being given to support walking, cycling, wheelchair use and prams
  • Working with the Edinburgh Tourism and Action Group and other partners to support the #ForeverEdinburgh campaign which will gradually market the City as an attractive place for shopping, dining out and visiting with a £55,000 contribution from the Council. 

£40 million COVID Restrictions Fund to provide grants and employment support

Economy Secretary Fiona Hyslop has outlined details of a £40 million fund to help businesses affected by temporary restrictions to slow the spread of coronavirus (COVID-19).

The COVID-19 Restrictions Fund will provide one-off grants of up to £3,000, depending on rateable value, to bars, restaurants and other businesses required to close by regulations.

A hardship fund with grants of up to £1,500 will support some businesses that remain open but are directly impacted by the restrictions, including those in the direct supply chains of firms that must close from tonight.

In addition, up to £9 million of funding will help with the costs of re-furloughing staff by supporting the 20% salary contribution required by the UK Government.

A discretionary fund of up to £11 million will help businesses that need support but don’t fall into the above categories. This will, for example, support soft play centres that have been unable to re-open this month.

The plan has been developed following discussions with business groups, trades unions and local authorities.

Ms Hyslop said: “The temporary restrictions announced by the First Minister are absolutely essential if we are to prevent a return to the dangerous level of infections that we experienced earlier this year.

“It is a difficult balance and we do not underestimate the challenge that these new measures present for businesses – particularly those in the hospitality sector.

“We have developed a funding plan which will help to protect jobs over the coming fortnight and I encourage business owners to apply for support. 

“We are also committed to helping businesses meet their contribution to furlough costs, where staff have to be re-furloughed.  We have increased the size of the grant available and are urgently identifying a mechanism to deliver additional support on top of that.

“While I welcome the UK Government’s plans to adapt the job retention scheme and the associated consequential funding, we still require clarity on what the Chancellor’s announcement will mean for Scotland.

“This situation further underlines the need for us to have the financial flexibility which would help us to rebuild our economy.”

Information for businesses is available at findbusinesssupport.gov.scot

Grants will be distributed by local authorities. Up to £2,000 will be payable to businesses with a rateable value of up to £51,000 that are required to close by law, for those with a rateable value of £51,001 or above the grant will be £3,000.

Ms Hislop’s announcement followed the Chancellor of the Exchequer’s statement:

Job Support Scheme expanded to firms required to close due to Covid Restrictions

The UK government’s Job Support Scheme (JSS) will be expanded to protect jobs and support businesses required to close their doors as a result of coronavirus restrictions, the Chancellor announced today (Friday 9 October).

  • Job Support Scheme will be expanded to support businesses across the UK required to close their premises due to coronavirus restrictions
  • government will pay two thirds of employees’ salaries to protect jobs over the coming months
  • cash grants for businesses required to close in local lockdowns also increased to up to £3,000 per month

Under the expansion, firms whose premises are legally required to shut for some period over winter as part of local or national restrictions will receive grants to pay the wages of staff who cannot work – protecting jobs and enabling businesses to reopen quickly once restrictions are lifted.

The government will support eligible businesses by paying two thirds of each employees’ salary (or 67%), up to a maximum of £2,100 a month.

Chancellor of the Exchequer, Rishi Sunak, said: “Throughout the crisis the driving force of our economic policy has not changed.

“I have always said that we will do whatever is necessary to protect jobs and livelihoods as the situation evolves.

“The expansion of the Job Support Scheme will provide a safety net for businesses across the UK who are required to temporarily close their doors, giving them the right support at the right time.”

Under the scheme, employers will not be required to contribute towards wages and only asked to cover NICS and pension contributions, a very small proportion of overall employment costs. It is estimated that around half of potential claims are likely not to incur employer NICs or auto-enrolment pension contributions and so face no employer contribution.

Businesses will only be eligible to claim the grant while they are subject to restrictions and employees must be off work for a minimum of seven consecutive days.

The scheme will begin on 1 November and will be available for six months, with a review point in January. In line with the rest of the JSS, payments to businesses will be made in arrears, via a HMRC claims service that will be available from early December. Employees of firms that have been legally closed in the period before 1 November are eligible for the CJRS.

The scheme is UK wide and the UK Government will work with the devolved administrations to ensure the scheme operates effectively across all four nations.

This comes alongside intensive engagement with local leaders today on potential measures are coming in their areas.

In addition to expansion of the JSS, the government is increasing the cash grants to businesses in England shut in local lockdowns to support with fixed costs. These grants will be linked to rateable values, with up to £3,000 per month payable every two weeks, compared to the up to £1,500 every three weeks which was available previously. This could benefit hundreds of thousands of businesses, including restaurants, pubs, nightclubs, bowling alleys and many more.

The devolved administrations in Scotland, Wales and Northern Ireland will benefit from a £1.3 billion increase to their guaranteed funding for 2020-21 – allowing them to continue their response to Covid-19 including through similar measures if they wish.

These measures will sit alongside the original JSS – which is designed to support businesses that are facing low demand over the winter months – and the £1,000 Job Retention Bonus (JRB) which encourages employers to keep staff on payroll.

They build on the UK government’s wider package of unprecedented measures to help protect, create and support jobs through the pandemic, to ensure that nobody is left without hope or opportunity.

Welcoming the move, Scottish Secretary Alister Jack said: “The extension of the Chancellor’s Job Support Scheme is welcome news for businesses across Scotland, providing a vital safety net for companies which are asked to close temporarily.

“From the very start of the pandemic, the UK Government has focussed on stopping the spread of coronavirus and keeping people safe, while also doing everything we can to protect the economy.

“The unprecedented package of measures we have put in place to support all parts of the country shows the clear benefits for Scotland being part of a strong United Kingdom.”

Muckle Media unveils raft of support for Edinburgh businesses

Muckle Media, the creative PR agency, has announced a number of innovative support programmes to help businesses in Edinburgh use PR and marketing to support economic survival.

Three streams of activity will provide much needed support for Edinburgh businesses looking to reach more customers through creative communications campaigns.

£20k Muckle Helps grant fund

The £20,000 Muckle Helps grant is a 100% free pot of PR fee funding, which is open for applications today. Interested businesses can register their details here and provide a one sentence response explaining why they need PR support and what it would be used for.

Applications close on the 31st August at which point the Muckle Media team will select the businesses they feel they can have the most impact supporting.

The fund will support a total of eight campaigns. It is made up of three packages worth £5,000, with one each in the food and beverage, tourism and B2B services sectors and five packages worth £1,000 each which are open to any sector. Additional funding may become available to extend the programme and the agency is interested in hearing from any potential funders that may wish to sponsor or match-fund additional support.

PR Now, Pay Later

In recognition of the huge impact coronavirus has had on cashflow for businesses, Muckle Media is also taking the unprecedented step of offering ten-month payment terms on invoices on request, allowing businesses to access creative PR now that does not need to be paid for until June 2021.

This innovative programme will support seasonal businesses in particular, as they can benefit from marketing now to improve their business performance in the 2020 season, but not pay for it until profits are being made into the 2021 season.

Terms and conditions and guarantees may be required to access this option. The amount of funding available through the PR Now, Pay Later programme will be linked to Muckle Media’s business growth, with every £1,000 of new business won (on a pay now basis) unlocking £500 of pay later fund.

PR bootcamp

Finally, Muckle Media will be offering a ten-week PR bootcamp programme, aimed at PR professionals who would like to review and revise their strategic communications plans in light of the many changes facing the world.

Also open to out-of-work communications professionals looking to upskill, the ten-week bootcamp will follow Muckle Media’s ten step communications planning process and deliver weekly webinar content on topics including insights, strategy, planning and crisis management.

Weekly content will include guest speakers from across the industry and accompanying worksheets will allow participants to create a full strategic communications plan over the course of the ten weeks.

For those short on time or who are only particularly interested in one topic, there is also the option to opt into specific webinars rather than the full course.

Nathalie Agnew, Muckle Media Managing Director, said: “It’s a difficult time for the economy just now so we would like to do everything we can to help businesses to spring back.

“Effective PR and communications are key to cut through the noise and reach potential customers, so we hope that our three new initiatives will prove popular with businesses of all sizes in need of support.”

Financial support for capital businesses using outdoor space

The charges in place for tables and chairs permits for Edinburgh businesses serving food and drink to customers outside is to be waived.

This follows approval by Thursday’s Policy and Sustanability Committee.  

Council Leader Adam McVey said: “As lockdown restrictions have eased allowing the reopening of outdoor areas for bars and restaurants, we’ve been speaking to individual businesses and local representative groups who’ve asked us for additional help in relation to the charges in place for tables and chairs permits to allow them to make sure that safe physical distances can be maintained when customers are visiting their premises.  

“We’ve recognised that city centre businesses need support due to the absence of both office workers and visitors and this will take time to recover. There is an urgent need to support businesses in the immediate term and I’m delighted that Committee has agreed to support them by waiving these charges entirely during this very difficult trading time.

“This will not only help businesses expand their footprint to help improve trading viability but also help maintain the pedestrian space and access, particularly for families and people with mobility issues or sight impairment.”

Cammy Day Depute Leader said: “This is yet another move we can make which will make the coming weeks and months a little less challenging for businesses.

“For the local economy to recover, we also need to see greater footfall to small businesses and a new campaign will launch next week to draw residents and visitors back to their favourite places for shopping and visiting.

“This is alongside all of the steps we’ve already taken to support our high streets, like directing £112.5m to businesses in support grants and widening pavements and cycleways to make it easier and more enjoyable to visit town centres. It will also be supported by the local Champions Network which we’re setting up to provide us with a direct link to businesses, so that we can monitor the challenges they face and the help they need.”

Businesses will still be required to apply for tables and chairs permits, and the standard conditions will need to be met, however, there will be no charge for the time period 1 July to 31 October.

Any business which has already paid for a permit will receive a refund for any payment made for this time period.

Tables and chairs permits allow anyone who sells food or drink to put tables and chairs on a public pavement between 9am and 9pm, seven days per week

Coronavirus support across every region and nation in the UK

New data published by HM Treasury reveals how businesses across every corner of the UK continue to be supported through government-backed coronavirus loan schemes.

  • new figures show government economic support is reaching every corner of the UK
  • businesses across the entire UK have received government-backed loans during outbreak – with more than 130,000 firms in devolved nations receiving £4.7 billion
  • data also shows that nearly 900,000 firms in England have benefitted from over £10 billion in business grants

Figures released by the Treasury show that more than 130,000 firms in Scotland, Northern Ireland and Wales have benefitted from £4.7 billion of coronavirus support through the government’s Bounce Back Loan and Coronavirus Business Interruption Loan Scheme (CBILS).

This includes:

  • loans and support worth more than £2.3 billion have been given to more than 65,000 firms in Scotland since the outbreak
  • around 41,000 businesses in Wales have received more than £1.4 billion in finance
  • and more than 25,000 businesses in Northern Ireland have received over £1 billion

The figures also show that businesses up and down England have also benefitted from more than £10 billion in business grants, with equivalent funding being made available to the nations through the Barnett formula.

  • more than 102,000 business properties in Yorkshire and the Humber received £1.1 billion in grants since the pandemic
  • alongside 119,000 grants made in the South West, to the value of £1.3 billion
  • and 131,000 business properties in the North West receiving over £1.5 billion in support

Loan schemes, grants and business rates holidays have supported businesses across all sectors. But the retail, construction and hospitality sectors, including hotels and restaurants, have benefitted the most.

17% of loans went to the construction sector, and all retail, hospitality, and leisure businesses benefitted from a 100% business rates holiday – demonstrating how government support helped those businesses that were impacted hardest by the pandemic.

Ahead of a visit to Scotland to see the impact of the government support schemes and meet people who have benefitted, Chancellor of the Exchequer, Rishi Sunak, said: “I recently set out the government’s next steps towards economic recovery and securing the UK’s long-term prosperity in our Plan for Jobs.

“As we embark on this next phase, the latest figures demonstrate that we are continuing to support jobs, incomes, and businesses across every corner of the UK.”

As well as loan schemes, grants and businesses rates holiday, around a third of employees in every region benefitted from the furlough scheme, in addition to support through the self-employed income support scheme, as the government moved quickly to support businesses across the whole country to protect jobs.

This is part of a package of over £50 billion in loans, £11 billion in grants, and 9.5 million people furloughed.

The Chancellor set out his Plan for Jobs last month, which will support jobs with the Job Retention Bonus to help businesses keep furloughed workers, and expand Worksearch Support including a Flexible Support Fund and a £2 billion Kickstart scheme to subsidise jobs for young people

The UK government is also creating jobs in the construction and housing sectors through funding to decarbonise public sector buildings, and protecting jobs with VAT cuts for hospitality and tourism, as well as the Eat Out to Help Out discount scheme. These schemes are union-wide, and support key industries across the whole of the UK.

This comes in addition to the government’s recent announcement that the devolved administrations in Scotland, Northern Ireland and Wales will receive a minimum of £3.6 billion in additional funding this year, on top of the £8.9billion confirmed since March to support the coronavirus recovery.

Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said: “Lenders understand that times are tough for businesses up and down the country, but the industry has a clear plan to help them get through this crisis.

“Whether you’re a sole trader in a rural area or a company with hundreds of employees in a major city, the banking and finance industry stands ready to offer the right support to suit your needs and these figures demonstrate that funding is well distributed throughout the UK.

“Businesses should remember that any lending provided under government-backed schemes is a loan not a grant, and so should carefully consider their ability to repay before applying.”

Business Secretary Alok Sharma said: “Our unprecedented package of support has helped firms of all sizes, in all sectors, and in every corner of our United Kingdom.

“Today’s data shows just how big an impact our measures have had, providing breathing space for millions of businesses, safeguarding jobs and protecting people’s incomes.

“As we bounce back from the pandemic, we will continue to prioritise jobs and skills, while placing the environment at the heart of our recovery.”

Companies benefit from the Scottish Government’s business support package

The Scottish Government created a support package for businesses in Scotland affected by Covid 19 and enterprise agencies worked at pace with VisitScotland and Creative Scotland to design and deliver two short-term funds: 

The Pivotal Enterprise Resilience Fund for vulnerable Scottish SMEs deemed vital to local, regional and national economies and the Creative, Tourism & Hospitality Enterprises Hardship Fund for tourism, hospitality and creative industry businesses that experienced hardship due to Covid 19.  

A total of 3,656 awards have been made to companies across Scotland equalling around £145.3M. Visit the Scottish Government website for more information. 

Chief Executive of Scottish Enterprise Steve Dunlop (above) said: “It is not an easy time for many businesses and Scottish Enterprise is working hard to provide funding, advice and resources to ensure businesses not only survive, but thrive now and in future.  

“The support from the Hardship and Pivotal Enterprise Resilience Funds has allowed companies across a range of industries to continue to trade. We will continue to work alongside Scottish Government and partners to focus on a fair, sustainable and jobs-focused recovery and play a critical role in rebuilding Scotland’s economy.” 

Precision engineering company Almond Engineering is based in Livingston and received £100,000 from the Pivotal Enterprise Fund and has remained in production throughout the pandemic by undertaking safety precautions. 

The business has also manufactured face shields to donate to the NHS as well as creating test equipment for ventilator manufacturers.

Managing director of Almond Engineering Michelle Quinn said: “The support from Scottish Enterprise has been so important for us. We have always really valued the help and support and in times like this it is doubly valuable.    

“The coronavirus has really impacted our orders at Almond and at times such as these when you don’t know how long the crisis will last nor how deep the recession will be, the government and Scottish Enterprise support allows time for the economy to start recovering and ensure that businesses such as ours are here once the world reopens.” 

Edinburgh based interior and graphic design firm 442 Design specialises in venue design, creating memorable customer experiences that challenge the conventions of traditional Food, Drink and Retail spaces. Their clients include Arsenal Football Club, Amazon, SSE Hydro, BBC Scotland, Adidas and Aramark. 

442 Design received £50,000 from the Pivotal Enterprise Resilience Fund, which was welcomed by Managing director David Dunn who said: “Our business relies heavily on crowds and entertainment whether through eating and drinking out, football matches or live gigs.

“The banning of crowd activity had a massively detrimental impact on our client businesses. Our business practically stopped with lockdown with all projects put on hold. 

“PERF has kept the company afloat during a time of forced abandonment of all projects, saved jobs and allowed 442 to reposition for the future. We’re now developing a different Covid-aware approach to designing spaces that can deliver both commercial return for client and ensure a great experience for our customers.” 

Arrayjet is a biotech company based in Roslin, Midlothian, supplying inkjet bio-printing instruments and also manufactures Covid 19 testing and research products.  

Iain McWilliam Chief Executive Officer of Arrayjet said: “The PERF grant helped support our cashflow during a critical period when revenue collection and generation was extremely difficult.

“Many of our customers had to cease operations temporarily, and the restrictions on travel prevented us from installing new instruments, look after our installation base, or to visit prospective clients.

“A large proportion of the Arrayjet team were already on the furlough scheme, but the PERF grant allowed us to continue some limited economic activity, to support our key local supply chain, to bring some staff back sooner and accelerate our recovery.  

“The PERF grant helped to stabilise our cashflow and gave our board the confidence to bring members of the Arrayjet team off furlough earlier than planned. As a result, we have been able to develop and market products and services related to Covid 19 research and diagnosis.”