New funds to support businesses uniquely affected by the coronavirus (COVID-19) pandemic will launch this week.
From today, local authorities will start to approach brewers, travel agents and indoor football centres inviting them to claim grants of £10,000 or £25,000. A higher payment of £30,000 will be available to the largest brewers.
Councils will brief around 400 eligible businesses on their potential entitlement and ask them to provide supporting information and bank account details. Owners do not need to apply, or contact the local authority.
Finance Secretary Kate Forbes said:
“We started 2021 in a way none of us envisaged nor wanted, with additional measures in place to limit the spread of the new strain of COVID-19, protect our NHS and save lives.
“These funds recognise the unprecedented challenges that brewers, travel agents and indoor football centres have experienced since March as a result of necessary restrictions.
“We are acutely aware that this support can never compensate for the full impact on business, but we must work within the resources that are available to us, and we continue to respond to the evolving economic challenges arising from the pandemic.”
The Scottish Government has allocated £3 billion in business support since the start of the pandemic on top of support available through the UK Government.
Grants available:
• £10,000 for premises which have a rateable value of up to and including £18,000 • £25,000 for premises which have a rateable value of £18,001 or above • £30,000 for brewers only operating a property with a rateable value of over £51,000 or production over 5,000HL in 2019
New fund to support for taxi and private hire drivers affected by the pandemic will launch this week.
New fund to support taxi, Local authorities will directly approach an estimated 38,000 private hire and taxi drivers inviting them to claim a £1,500 grant to assist with fixed costs, boosting the support from other funding for loss of income available through the Scottish and UK Governments.
A new total of £57 million has been allocated by the Scottish Government – three times more than the allocation announced in December.
Councils will start contacting eligible drivers this week to brief them on their potential entitlement and ask them to provide supporting information and bank account details. They do not need to apply, or contact the local authority.
Support for taxi and private hire drivers
Finance Secretary Kate Forbes said:
“We know how difficult this pandemic has been for taxi drivers and their families. They’ve truly gone the extra mile, continuing to provide a vital service for key workers and vulnerable individuals throughout the lockdown and beyond.
“Following the introduction of tighter regulations at Christmas I have trebled the budget originally announced for this fund to £57 million, enough to provide grants of £1,500 to all of Scotland’s 38,000 taxi and private hire drivers.
“It will help to support the taxi trade by augmenting existing support and assisting drivers in meeting fixed costs including licence plate fees, rental fees and insurance payments for taxis not on the road.”
Business owners affected by the pandemic will be protected from eviction until the end of March 2021.
Business owners affected by the pandemic will be protected from eviction until the end of March 2021, Communities Secretary Robert Jenrick announced today (9 December 2020).
The majority of commercial landlords have shown flexibility, understanding and commitment to protect businesses during an exceptionally challenging time.
This final extension to protections from the threat of eviction will give landlords and tenants 3 months to come to an agreement on unpaid rent. The government is clear that where businesses can pay any or all of their rent, they should do so.
Further guidance to support negotiations between landlords and tenants will also be published shortly.
The move will also support businesses worst affected by the pandemic, such as bars and restaurants, helping them to rebuild over the winter period. This is in addition to putting in place one of the world’s most comprehensive economic responses to protect jobs, incomes, and business throughout and beyond this pandemic.
Alongside this, Mr Jenrick has also announced a review of the outdated commercial landlord and tenant legislation, to address concerns that the current framework does not reflect the current economic conditions.
This review will consider how to enable better collaboration between commercial landlords and tenants and also how to improve the leasing process to ensure our high streets and town centres thrive as we recover from the pandemic and beyond.
Today’s announcement builds on the extra government support for businesses, including targeted VAT cuts, extension of government-backed loan schemes, grants of up to £3,000 for premises that must close, and £1.1 billion for councils to enable them to support businesses in their area.
Overall the government has committed a package of over £280 billion of support for businesses and employees this year and the Chancellor has confirmed an additional £55 billion for next year.
Secretary of State for Housing Rt Hon Robert Jenrick MP said:
I am extending protections from the threat of eviction for businesses unable to pay their rent until March 2021, taking the length of these measures to one year. This will help them recover from the impact of the pandemic and plan for the future.
This support is for the businesses struggling the most during the pandemic, such as those in hospitality – however, those that are able to pay their rent should do so.
We are witnessing a profound adjustment in commercial property. It is critical that landlords and tenants across the country use the coming months to reach agreements on rent wherever possible and enable viable businesses to continue to operate.
Business owners affected by the pandemic will be protected
Business Secretary Alok Sharma said:
We have stood by businesses across the country throughout this pandemic, and as we head into the New Year we will make sure they continue to have the support they need to keep their finances stable, protect jobs and build back better.
There is still some uncertainty ahead, but knowing that they won’t be evicted by their landlord will give thousands of business owners some breathing space and the additional confidence they need to plan for their futures.
Business owners affected: Further guidance to support tenants and landlords to continue to work together to agree rent payment options where businesses are struggling will be published shortly.
Additional guidance published early next year will sit alongside the government’s Code of Practice, published in June, to encourage all parties to work together to protect viable businesses and ensure a swift economic recovery.
The government will also extend insolvency measures on restricting statutory demands and winding up petitions until the end of March.
The restriction on landlords using Commercial Rent Arrears Recovery (CRAR) to recover unpaid rent will also automatically extend to the end of March, in line with the moratorium’s expiry date. This allows businesses sufficient breathing space to pay rent owed.
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