SGF flays Scottish decision to close business support grants

Scottish Grocers Federation (SGF) has urged the Scottish government to reconsider its decision to close two COVID-19 business support schemes for new applications.

Finance Secretary Kate Forbes has announced that Small Business Grant and Retail, Hospitality and Leisure Grant schemes will close for new applications on 10 July, citing lower number of applications in recent weeks.

“New applications for the Small Business and Retail, Hospitality and Leisure Grant schemes have slowed in recent weeks as large numbers of businesses have already applied. It is essential that we do not allow funds to sit for too long in schemes that are attracting few applications, so we have decided to bring these to a close next month,” Forbes has said.

Pete Cheema, chief executive of the SGF, however, contented that the continued availability of these business support grants is important for retailers.

“There does not seem to have been any consultation with businesses and other key stakeholders. At no time were we advised about this matter and the impending decision that was to be made,” he said, adding that the SGF has written to Economy Secretary Fiona Hyslop seeking a meeting with her to discuss the subject.

Cheema demanded an extension of the deadline, which was originally set for 31 March 2021, at least till the end of the year.

“Convenience store retailers are essentially working extended hours, seven days a week, in order to play their part in ensuring a consistent supply of essential groceries and to continue to provide vital services to our communities though Covid-19. Given these pressures many of them will simply not have had the time yet to apply for these vital business support grants,” he noted.

“Reducing the time available to apply for a grant puts Scottish businesses at a severe disadvantage from those in the rest of the UK, where the deadline remains at 31 March 2021,” he added.

The Scottish government has stated that the closure of these schemes will help to re-route the money available from the UK Government “to help businesses in other ways.”

As of 2 June, £824.54 million has been distributed to 72,622 businesses across Scotland through the schemes.