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Response to the Chancellor’s business support announcement

Scotland’s Economy: Update

Disappointing news for Tourism Businesses in Scotland

Response to the Chancellor’s business support announcement

(Today the Chancellor made a funding announcement stating that businesses in the retail, hospitality and leisure sectors are to receive a one-off grant worth up to £9,000. The Chancellor also said a further £594 million is 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.)

Read more from the UK government

Responding to today’s announcement by the UK Government on business support, Finance Secretary Kate Forbes said:

“We are both surprised and disappointed that the UK Government’s announcement of additional funding for businesses in England will not – despite the initial indications –  generate further new funding for the Scottish Government or other devolved administrations.

“This is a blow to Scottish businesses, whose expectations had been raised by the announcement, and I will be writing to the Chancellor to raise the issue.

“We fully understand that while the tight new restrictions now in force are necessary to slow spread of the virus, they represent another blow for businesses. That is why we have allocated £570 million since October to helping businesses, and this sum of funding will rise due to the number of new businesses eligible for support under the latest lockdown restrictions.

“Our priority is to ensure that assistance reaches those most in need as quickly as possible. In recent weeks we have announced an extra £185 million of sectoral support, including one-off grants for hospitality businesses, an additional £41 million top up support for non-essential retail and gyms and a £30 million local authority discretionary fund.”


Support for business announced by the Scottish Government in December includes;

  • £19.2 million to provide one-off grants of £2,000 to hospitality businesses with a rateable value (RV) under £51,000 and £3,000 for those with a RV over £51,000
  • £50.8 million support focused on businesses with a RV over £51,000 that have not received other assistance. Additional support will also be provided to smaller businesses impacted by restrictions
  • £1.5 million to travelling show people ineligible for other support
  • £15 million for the wedding sector and its supply chain, including photographers
  • £2.5 million for outdoor tourism
  • £7 million for self-catering
  • £1 million for B&Bs and guest houses excluded from latest business rates support scheme
  • £2.3 million for hostels
  • £11.8 million for international inbound tourism, coach tourism and domestic tour operators
  • £1.2 million for DMOs
  • £5 million for visitor attractions

We have no new information about the eligibility criteria for these support packages at this time.  We will keep you updated as soon as further information becomes available.

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