Chamber and committees

The Scottish Government appreciates the devastating impact that COVID-19 has had on Scotland's tourism and hospitality businesses and has worked hard to put in place a significant package of support for the sector. We have also listened closely where it has become apparent that needs are not being met - the Creative, Tourism and Hospitality Hardship Fund is a specific example of this. We will continue to work with the Scottish Tourism Alliance, and other sector representatives, to ensure that Scottish tourism is supported towards recovery. The Cabinet Secretary for Rural Affairs and Tourism has written to the UK Minister for Tourism on thse issues, and on and will continue to press the UK Government to do the same.

The Creative, Tourism and Hospitality Enterprises Hardship Fund (CTHEHF) provides support for small creative, tourism and hospitality companies who have experienced at least 50% loss of current or projected revenue as a result of COVID-19 and are experiencing hardship. Due to significant demand we have increased the fund from £20m to £30m. The fund is administered by our enterprise agencies, which are currently progressing applications. The fund is now closed.

Each enterprise agency administers the fund in its respective area so no guidance was issued to Local Authorities.

Prior to launch of CTHEHF, the Scottish Government provided guidance on the purpose and eligibility criteria to the enterprise agencies. This covered, for instance, which sectors were included within the fund rather than detailed guidance on allocating funding to sporting businesses. Each application is assessed by trained assessors with awards made based on need.

The COVID-19 pandemic has created an unprecedented public health and economic crisis which has required a government response like no other in modern peace time. The Scottish Government’s focus is to help and support our Tourism and Hospitality industry through these difficult times and to see it come back strong when it is safe to do so. Previous events, while posing deep challenges, prove that Scotland’s tourism industry is resilient and will recover in time.

The Scottish Tourism Emergency Response Group published the final elements of its National Action Plan on 26 May on the VisitScotland website, VisitScotland.org. The Scottish Government continues to work with all members of the Group, including VisitScotland, the enterprise agencies, CoSLA and the Scottish Tourism Alliance, to deliver the Action Plan to ensure a safe and strong recovery for Scottish tourism as soon as it is possible to do so.

The Scottish Government published ‘Coronavirus (COVID-19): framework for decision making - Scotland's route map through and out of the crisis’ on 21 May, setting out a phased approach to lifting lockdown measures.

On 28 May the First Minister announced that due to the evidence on suppressing the spread of the virus, we would be moving into Phase 1 of that Route Map, in which small and cautious changes would be made to what is and isn’t allowed.

As part of Phase 1 the Scottish Government is allowing people to go fishing on their own or with a family member, as long as they adhere to physical distancing measures. This should be undertaken within the local area, and no further than 5 miles from home.

The Scottish Government, in conjunction with sport scotland, will continue to work closely with all partners to understand their specific circumstances in supporting community sport to mitigate the impact of COVID-19 and will consider these as part of our ongoing commitment to determine what further support might be needed. We are helping sporting organisations and groups to access the various funding streams available for community sport organisations which can be found on the COVID-19 dedicated pages on the sport scotland website. Particularly, the job retention scheme, non-domestic rates relief and the third sector resilience fund.

sport scotland have communicated to all Scottish governing bodies of sport and local partners that they will receive six months of their annual investment in April/May, totalling £16.4m. They have also relaxed the usual targets or outcomes they would normally attach to this funding. This will allow recipients to mitigate the worst of the immediate impact on their operations, protect jobs, and continue to support their clubs and communities.

Further to these, we have introduced a 100 per cent rate relief for non-domestic properties in the Retail, Hospitality, Leisure and Airport (RHLA) sectors in 2020-21. Sports clubs may be eligible if they occupy premises wholly or mainly used for purposes set out in The Non-Domestic Rates (Coronavirus Reliefs) (Scotland) Regulations 2020.

Further, sports clubs may also be eligible for other reliefs offered by the Scottish Government, for instance charitable rates relief or sports relief. As at 31 May 2019, 1,760 properties were in receipt of sports club relief and this led to a reduction in their rates bills of £15.5 million.

Additional support for sports clubs is available through the Business Support Grant Scheme. This includes the Small Business Grant for small sports clubs in receipt of the Small Business Bonus Scheme (SBBS), or eligible for the SBBS but in receipt of sports relief or charitable rates relief. £10,000 may be available on the first eligible property, and 75% grants (£7,500) may be available on each additional property.

From 8 June the upper rateable value threshold for retail, hospitality or leisure (RHL) properties with individual rateable values of up to £18,000 each will also be extended: currently at £51,000 for all RHL, will be increased to a cumulative value of £500,000.

Businesses in the Retail, Hospitality and Leisure sectors, operating in a premises with a rateable value between £18,001 and £51,000, will be eligible for a £25,000 grant on their first eligible property, and grants of £18,750 will be available on any additional qualifying properties that a ratepayer may have.

The funding for business support provided to local authorities is not broken down by sector or business type. We have increased our 2020-21 General Revenue Grant by £972 million to offset the reduction in business rates income resulting from our package of support for businesses through rates reliefs, effectively underwriting their income stream. The Scottish Government has allocated £1.17 billion to the funding for the Business Grant Support Scheme.

From the outset of this pandemic the Scottish Government has endeavoured to provide support across all sectors of our economy, and to ensure that it is distributed in the most equitable way possible whilst addressing some of the specific sectoral and geographical issues in Scotland’s macro economy.

The Business Grant Support Scheme is aimed at helping keep companies in business and promoting economic recovery. Eligibility to the grant scheme is linked to the non-domestic rates system because it is the fastest, most effective way to reach businesses.

Depending on the circumstances businesses may be eligible to apply for support measures such as furloughing staff through the Coronavirus Job Retention Scheme.

In addition to grant funding the Coronavirus Bounce Back Loan scheme offers eligible small and medium-sized businesses with loans of between £2,000 and £50,000. The loans are backed by the UK Government and there are no fees, interest charges or repayments due for the first 12 months, with loan terms of up to 6 years.

Another avenue of support is the Coronavirus Business Interruption Loan Scheme (CBILS), which aims to support small and medium sized businesses, including limited companies, to access finance of up to £5 million for up to 6 years. Applications are made through approved commercial lenders and backed by the UK Government’s British Business Bank.

Some businesses do not qualify for any government schemes which is why we committed a further £185 million of additional grant support for small and medium-sized businesses and the newly self-employed.

The range of business support is kept under review and up to date information is available online at findbusinesssupport.gov.scot.

I refer the member to the answer to question S5W-29218 on 4 June 2020. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at http://www.parliament.scot/parliamentarybusiness/28877.aspx .

The route map takes an evidence-led and transparent approach to easing restrictions and sets out a phased approach towards the future. We will retain current restrictions while they remain justified, necessary and proportionate, and will not change them unless and until it is safe to do so. Our decisions are based on our assessment of the current evidence for Scotland and involve taking difficult decisions that seek to balance health, social and economic harms so as to minimise overall harm.

Our modelling shows that there is a risk that if restrictions are lifted too soon then a second surge in infection could lead to further harm to our economy, health and society.

The Chief Economist’s latest economic outlook is set out in the latest State of the Economy report, available at:

https://www.gov.scot/publications/state-economy-april-2020/ .

As well as the Monthly Economic Brief for May, available at:

https://www.gov.scot/publications/monthly-economic-brief/ .