Economy and Fair Work Committee
Pre-Budget 2022-23 Scrutiny - Covid-19 Financial Support
Letter to the Cabinet Secretary for Finance and Economy - 28 June 2021
Dear Cabinet Secretary,
As you may know, the new Economy and Fair Work Committee met for the first time on Wednesday 23 June, when I was elected as Convener. My Committee colleagues and I look forward to working with you over the coming session and our clerks will be in touch in due course to arrange an introductory meeting with the new Committee.
The Committee agreed at its first meeting to write to you ahead of its scrutiny of the draft budget 2022/23. As with previous years, the Committee intends to carry out prebudget scrutiny before the publication of the draft budget. In particular, the Committee is exploring focusing part of this scrutiny on the funding allocated to provide Covid-19 business support.
The Committee welcomes the Scottish Government’s very detailed publication of the summary of business support funding and notes that, since the start of the pandemic, the Scottish Government has made available over £3.6 billion in business support to help mitigate the economic impacts of the virus.
The Committee notes that the published figures are now regularly updated, and welcomes this; however, to assist with the Committee’s planning, we are seeking the following information for the current financial year:
• The Committee would welcome, if possible, details of Covid-19 related business support provided by sector and an aggregate overview of all spend by local authority.
• In addition to the published figures for spend on Covid-19 business support, what business support funding remains to be allocated?
• Has the funding been oversubscribed or are some specific funds undersubscribed?
• How much of the £3.6 billion business support made available was allocated from Covid-19 Barnett consequentials? Are there Barnett consequentials related to business support yet to be allocated?
• What analysis has been carried out on the effectiveness of the Covid-19 business support funding provided over the past year to inform the forthcoming draft budget?
• Going forward, have contingency funds been set aside for future Covid-19 business support for this forthcoming financial year should further restrictions need to be imposed on businesses?
• In addition to the £3.6 billion made available for business support, what funds have been allocated for economic recovery? How much of this funding has been spent to date and how will this recovery funding be targeted by sector and region?
• Since the onset of the pandemic, what learning has there been around communicating and engaging with the business base?
It would be helpful if you could provide this information to the Committee by 11 August 2021.
Kind regards
Claire Baker MSP
Convener