The Scottish Government announced an additional round of targeted measures last week to assist those businesses affected by the additional restrictions imposed on 9th October 2020. Two new funds will be available, administered by local authorities, providing one-off grants to hospitality and other businesses required to close, or affected significantly, by the brake restrictions regulations.
The business closure fund will operate as a two-tiered scheme:
- a smaller grant of £2,875 for businesses with a Rateable Value (RV) of up to and including £51,000
- a larger grant of £4,310 for businesses with an RV of £51,001 or above, up to a maximum of £21,000 in total for any eligible business operating multiple premises
The discretionary business hardship fund will support some companies that can remain open but are directly impacted by the restrictions, including those that supply businesses that must close. It will also operate as a two-tiered scheme depending on Rateable Value:
- a smaller payment of £1,440 for businesses with a Rateable Value (RV) of up to and including £51,000
- a larger payment of £2,155 for businesses with a RV of £51,001 or above, up to a maximum of £14,000 in total for any eligible business operating multiple premises
Hospitality businesses and some gyms, which are required by these new regulations to operate in a restricted way will be specifically targeted in the first round of applications alongside producers/wholesale businesses supplying primarily short-life goods or produce to hospitality businesses. Further qualifying criteria is that:
- Those producers/wholesale firms must be able to evidence a minimum 25% reduction in turnover during the brake period.
- Businesses must have been open and trading on 9 October 2020
- Those which provide takeaway food as the core and established basis of their operations will not be eligible for either the closure or hardship fund.
Funding is limited with a small window for applications remaining open until 5pm on 3rd November 2020. As previous coronavirus grants were withdrawn early, we would urge any ratepayer who meets the criteria to apply immediately. For prolonged closures, further relief will be available from 2nd November and we will continue to keep you updated.
Please contact one of our business rates experts for further information:
Lynsey Russell (Central Belt Scotland)
Lorna Greig (North and North East Scotland)
Douglas Lambie (Licensed & Leisure)