Chamber and committees

The Scottish Government recognises that the bed and breakfast sector, along with all of Scotland's tourism accommodation providers, has been severely impacted by COVID-19. It continues to work closely with the Scottish Tourism Alliance and other industry bodies, including those representing the bed and breakfast sector, to monitor the ongoing impacts of COVID-19 on Scotland's tourism industry, both through data insights and through written and verbal communications and to work to address these.

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.

Scotland's bed and breakfast businesses have been eligible to apply for all appropriate funding schemes that the Scottish Government has made available to the sector, including non-domestic rates relief, business grants and the Creative, Tourism and Hospitality Hardship Fund, where they meet the criteria to do so.

Scottish Ministers recognise the exceptionally difficult circumstances being experienced by the tourism sector as a result of COVID-19, and the challenges these have created. We have significant and ongoing engagement with key stakeholders from the tourism sector including through the Scottish Tourism Emergency Response Group and the Scottish Tourism Alliance, which have been key in identifying and addressing many of the challenges faced by businesses, employees and the self-employed in Scottish tourism.

We have put in place a substantial package worth over £2.3 billion for businesses in Scotland, with particular focus on the tourism and hospitality. This includes the Creative, Tourism and Hospitality Enterprises Hardship Fund, and the Pivotal Enterprise Resilience Fund.

While official data on the financial impact of COVID-19 on the tourism sector are not yet available for Scotland, the Scottish Government has published an experimental Monthly Business Turnover Index. These provide an early indicator of business activity using the survey data held by the Scottish Government. The index for March 2020 was published on 13 May, and indicates a considerable proportion of companies in Scotland’s Accommodation and Food Services sector has reported lower turnover in real terms than 12 months ago. This publication is available at:

https://www.gov.scot/publications/monthly-business-turnover-index-march-2020/

The ONS has published initial UK-level data on the impact of COVID-19 by industry through its Business Impact of COVID-19 Survey (BICS). BICS includes data on responding firms’ trading status, and impacts on their recent turnover, for sectors including the Accommodation & Food Service sector.

Data from ONS’s BICS is available at: https://www.ons.gov.uk/economy/economicoutputandproductivity/
output/datasets/businessimpactofcovid19surveybicsresults

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.

I refer the member to the answer to question S5W-29387 on 8 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 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.

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 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.