Covid-19 Archives - Page 34 of 63

Tourism Question on Financial Support

Posted on February 11, 2021February 11, 2021 by Fiona Campbell

Willie Rennie (North East Fife) (LD): To ask the Scottish Government whether it will review the financial support available to self-catering establishments, bed and breakfasts and guest houses. (S5O-05015)

The Cabinet Secretary for Rural Economy and Tourism (Fergus Ewing): All self-catering, B and B and guest house businesses in level 4 areas that pay non-domestic rates can apply for grants of £2,000 or £3,000—depending on rateable value—every four weeks from the strategic framework business fund. Equivalent support for B and Bs that do not pay non-domestic rates, but pay council tax, is also available.

Larger self-catering and exclusive-use properties will also benefit from an additional £7 million fund to mitigate the impact of the single household restrictions. Support packages have been designed in response to business needs and agreed with sector representatives, but we will continue to monitor tourism support needs.

Willie Rennie: I am sure that the cabinet secretary knows that there is real anger in the self-catering sector that the sector-specific support misses most of them out. Around 15,500 businesses will get nothing. For the small number of businesses that will get support, the fund has not yet opened. Many of them are on their knees, and are considering selling up already.The cabinet secretary is generous with his time and is open minded. I suggest that he urgently changes the scheme before it is too late.

Fergus Ewing: Mr Rennie raises a serious point. I am determined that all businesses whose trade has been terminated as a result of the Covid restrictions and which have been unable to offer their excellent hospitality and accommodation to their guests are supported. The problem is a serious one. I am not sure that I recognise the figures that Mr Rennie quotes, but I am happy to discuss the issue with him, as I already have done.

We believe that the funding that we have put in place is sufficient to provide lifeline support. We previously provided support for B and Bs that did not have business bank accounts, and we are extending the support to B and Bs that do not pay business rates, as I explained in my response to Mr Halcro Johnston. We paid support to self-catering properties last year. There is also the continuing entitlement to a payment of £2,000 or £3,000 every four weeks. As with all the schemes, that is designed to provide lifeline support to get people through.

I hope that we can safely resume the staycation market. If we can do so, many self-catering properties, B and Bs and guesthouses will be well placed to continue to offer an excellent experience. They did that last summer; indeed, self-catering units and caravan parks were allowed to open slightly earlier than the rest of the tourism sector.

I accept that those businesses are the backbone of our tourism sector, especially in rural Scotland. They must get sufficient support. I constantly review whether we are achieving that objective, working closely with people such as Fiona Campbell of the Association of Scotland’s Self-Caterers and David Weston of the Bed and Breakfast Association. I will continue that work.

https://www.parliament.scot/parliamentarybusiness/report.aspx?r=13117

Large Self-Catering Grant

Posted on February 11, 2021 by Melanie Allen

Support provided by Scottish Government

What does this involve?

This fund is for larger self-catering properties in Scotland that have been impacted by the single household restrictions during the coronavirus (Covid-19) pandemic.

The grant will make one-off payments of £2,000 to eligible applicants.

Am I eligible?

Self-catering businesses are eligible if they have a property which accommodates seven or more people, and for which they pay non-domestic rates.

The number of bed spaces will be linked to records held by the Rates Assessors. A property must have been recorded as having seven or more bed spaces by the Assessor on 1st January 2021 to be eligible.

What does this cost?

This is a free service.

Who is this for?

The grants are for self-catering businesses in Scotland that have a property which accommodates seven or more people (as recorded by the Rates Assessor on 1st January 2021) and for which they pay non-domestic rates.

Important information

Local authorities will identify and invite eligible businesses to register for payment. There is no need to apply.

This additional grant does not impact on your eligibility for the Strategic Framework Business Fund.

Next steps

Local authorities will identify and invite relevant businesses to register for payment – you do not need to apply.

Bounce Back Loans: Pay as you Grow

Posted on February 8, 2021February 8, 2021 by Fiona Campbell

Bounce back loan borrowers can delay repayments by extra six months

Businesses that took out government-backed Bounce Back Loans to get through Covid-19 will now have greater flexibility to repay their loans, the government announced today (8 February).

Bounce Back Loan borrowers will now have the option to tailor payments according to their individual circumstances
Chancellor makes support even more generous with the option to delay all repayments for a further six months
Pay as You Grow will be available to over 1.4 million businesses, which collectively took out nearly £45 billion through the Bounce Back Loan Scheme

The Chancellor’s Pay as You Grow repayment flexibilities now include the option to delay all repayments for a further six months, meaning businesses can choose to make no payments on their loans until 18 months after they originally took them out. The option to pause repayments will now be available to all from their first repayment, rather than after six repayments have been made.

Pay as You Grow will also enable borrowers to extend the length of their loans from six to ten years (reducing monthly repayments by almost half) and make interest-only payments for six months, in order to tailor their repayment schedule to suit their individual circumstances.

These Pay as You Grow options will be available to more than 1.4 million businesses which took out a total of nearly £45 billion through the Bounce Back Loan Scheme.

This is in addition to the government covering the costs of interest for the first year of the loan.

Pay as You Grow’s additional support, first announced by the Chancellor in September, will give borrowers the option to tailor repayments to their individual circumstances.

This will provide more time and greater flexibility to repay the loans.

From today, lenders will begin reaching out to borrowers to provide information on repayment schedules and how to access flexible repayment options.

The Chancellor of the Exchequer, Rishi Sunak, said:

Businesses are continuing to feel the impact of extended disruption from Covid-19, and we’re determined to give them the backing and confidence they need to get through the pandemic.

That’s why we’re giving Bounce Back Loan borrowers breathing space to get back on their feet, through greater flexibility and time to repay their loans on their terms.

Lenders will proactively and directly inform their customers of Pay as You Grow, and borrowers should only expect correspondence three months before their first repayments are due.

It will provide businesses with the following options:

Extend the length of the loan from six years to ten
Make interest-only payments for six months, with the option to use this up to three times throughout the loan
Pause repayments entirely for up to six months

Business Secretary, Kwasi Kwarteng, added:

The comprehensive and generous financial support package we have delivered across the UK has protected jobs, saved businesses and kept local economies on the move.

While our vaccine rollout is moving at an incredible pace and the end is in sight, we know times are still tough for many companies and extra support is needed.

These flexible repayment options will give businesses the time they need to recover from the pandemic before paying back loans, giving them the breathing space and confidence to build back better.

Further Information

The British Business Bank run the Bounce Back Loan Scheme.

The government has made clear that lenders are expected to offer PAYG options to all borrowers under the Bounce Back Loan Scheme.

Following discussions with lenders, all borrowers should receive identical information on PAYG being offered.

The Financial Conduct Authority’s conduct rules require lenders to show due consideration and appropriate forbearance to borrowers in difficulty.

Under the Bounce Back Loan Scheme, no repayments or interest are due from the borrower during the first 12 months of the loan term.

Please see a summary of existing support.