Federation of Small Businesses' Highlands and Islands development manager joins voices calling for Scottish Government to create emergency grant and loan scheme for firms and self-employed amid fall-out from Covid-19 coronavirus pandemic
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A CALL has been issued for the Scottish Government to create an emergency grant and loan scheme for businesses and the self-employed, amid arguments that the Highlands and Islands could be particularly hard hit by the economic downturn.
Highlands and Islands development manager for the Federation of Small Businesses (FSB), David Richardson, pointed out that small scale and micro-businesses play a more significant role in the economy of the region than other parts of Scotland, with many of those businesses playing a vital role in ensuring vulnerable communities remain sustainable.
With many of those businesses now under threat as a result of the coronavirus pandemic and the steps taken to slow its spread, urgent action is needed to ensure their survival and non "fall through the cracks" of promised government support.
Mr Richardson said: “The current crisis has brought the highly complex nature of Scotland’s economy and the major differences between regions into sharp focus, and it is clear that the unique geography of the Highlands and Islands, together with it’s small, highly dispersed and fragile population and highly seasonal economy, make this region very vulnerable. It is imperative that we pull out all the stops now to ensure that our economy remains strong after the crisis passes.
“As the voice of smaller businesses, the FSB is doing just that, ensuring that the experiences of our Highlands and Islands members are heard by politicians and policy-makers in Holyrood and beyond, and ensuring that as many of the cracks in the business support system are filled as possible.”
Mr Richardson was speaking in support of a letter sent to Scottish Ministers by the FSB, which argues for new help for operators who are either excluded from existing support mechanisms or who believe the help they have been offered is insufficient.
These included home-based businesses and others which sell from vehicles rather than a permanent building, who are currently excluded from the Scottish coronavirus grant programme.
Newly self-employed people also miss out on the support offered by the UK Government to other members of the sector, and the FSB has also found that some small Scottish chains are set to receive much less grant help than their counterparts south of the border.
The letter suggests that this new scheme could be funded from any underspend from the current Scottish grants programme, and that the Scottish Government may wish to make a request to Treasury if new finance is required.
In addition, the campaign group calls for Ministers to redirect existing public sectors business loan schemes toward helping firms through the coronavirus crisis.
The FSB's Scotland policy chairman, Andrew McRae, said: “Policymakers in Edinburgh and London know that many businesses are on borrowed time. And that’s why political decision-makers have rightly focussed on getting support programmes established for the greatest number of individuals and enterprises.
“But as the dust settles, it is clear that there are some in business not getting any help at all. And there are others for whom the help looks insufficient. That’s why we’re arguing for a new grant and loan support fund, which would allocate funding on a case-by-case basis.
“Not every newly self-employed consultant, independent chain, or tradesman operating from their van, will need help. But for those that do, we’re urging the Scottish Government to fill that gap.
“The Scottish Government should look at all of the resources at their disposal to provide additional help for operators that need it.09
“While many in business are immensely relieved at the help in the pipeline, it isn’t fair that some feel forgotten. Ministers in Edinburgh have an opportunity to provide a new safety net.”
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