FSB tells Scotland to fill the coronavirus support gap

In a letter to ministers, the Federation of Small Businesses (FSB) has argued for new help for operators who are either excluded from existing support mechanisms or who believe the help they’ve been offered is insufficient. 

The FSB highlighted that home-based and vehicle-based firms are currently excluded from the Scottish coronavirus grant programme; that newly self-employed people do not benefit from the UK government’s help for this group; and that some small Scottish chains are set to receive much less grant help than their counterparts south of the border.  

Andrew McRae, FSB’s Scotland policy chair, said, “Policymakers in Edinburgh and London know that many businesses are on borrowed time. And that’s why political decision-makers have rightly focused 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."

The letter suggested that this new scheme could be funded from any underspend from the current Scottish grants programme, moreover the FSB acknowledged that the Scottish government may wish to make a request to Treasury if new finance is required.

In addition, the campaign group argued for ministers to redirect existing public sectors business loan schemes toward helping firms through the coronavirus crisis. The FSB noted that the Welsh government recently launched a £500 million Economic Resilience Fund.

“The Scottish government should look at all of the resources at their disposal to provide additional help for operators that need it. That might mean redirecting cash from other initiatives, or working with Treasury to get money to the real economy," said Mr McRae. 

“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.”