Discretionary Business Support Fund

Businesses that have missed out on other forms of Covid-19 funding can apply for the Local Authority Discretionary Fund launched this week.

£30 million funding has been provided to local authorities to provide additional support for businesses where they consider that necessary or justified.

The aim of this fund is to mitigate the short term financial challenges being experienced by businesses adversely impacted by restrictions and regulations introduced since October to control the spread of COVID-19. It enables individual local authorities to direct additional financial support to specific groups, sectors or businesses within their local business communities who are experiencing immediate financial challenges as a result of current restrictions and regulations.

This fund provides eligible businesses with £2,000 to support them through the latest Coronavirus restrictions. The fund is targeted at small and micro businesses (50 employees or fewer) and the self-employed and takes into consideration local priorities and gaps in support. It is specifically aimed at businesses and individuals that haven’t received other Scottish Government financial support introduced since October 2020.

Local authorities can use this fund at their discretion, and will undertake their own assessment of need and develop application processes accordingly.

To apply for this fund, you need to go through your local council:

Large (7 or more guests) Self-Catering Grant

The Large (7 or more guests) Self-Catering Grant is part of a £7m funding package that has been designed to mitigate the serious impact that the single household restriction has had on the vital part of Scotland’s tourism industry.

Self-catering properties that accommodate more than seven guests have been effectively forced to close by the rule and many have been left without any reliable means of income or government support. It is hoped that the money will ensure the viability of such businesses into the future.

Association of Scotland’s Self-Caterers Chief Executive, Fiona Campbell, said:

“We very much welcome the announcement of this vital support package for Scotland’s self-catering sector and we look forward to working with the Scottish Government to get it to where it is most sorely needed.

“Today’s announcement will undoubtably be accompanied by sighs of relief from self-caterers across Scotland, many of whom have seen the viability of their businesses put in doubt.

Tourism Secretary Fergus Ewing said:

“It is clear that some larger self-catering properties have been uniquely impacted, initially by the rule restricting the number of guests to six from two households, and then by the single household rule.

“I am pleased to confirm the details of this extra support for self-catering businesses. This will be targeted directly where it is needed most, to those self-catering businesses that have been severely impacted by the restriction on household numbers. All self-catering and other accommodation providers are already in scope for regular payments from the SFBF and I would encourage business owners to make sure they have registered with their local authority for this support.”

Self-Catering Units’ rateable values are based on the number of bed-spaces that your business provides per rateable value (not including sofa-beds). 

Smaller Self-Catering Businesses

All self-catering businesses registered on Non-Domestic Rates (regardless of whether you benefit from Small Business Bonus Scheme), are still eligible for the Strategic Framework Business Fund Grants, including those on Level 3 Islands:

Grants will be paid every 4 weeks in arrears as long as restrictions last.

If your business is required to close by law, apply for the Temporary Closure grant:

  • £2,000 if your business premises has a rateable value of up to and including £51,000
  • £3,000 if your business premises has a rateable value of £51,001 or above
  • From 1 January 2021 there will no longer be an upper limit of £15,000 for any eligible business operating multiple premises.

Applications to the Strategic Framework Business Fund should be made through your local authority website.

Exclusive Use Venues

Exclusive use properties in Scotland provide accommodation solely for one customer or parties with a minimum let of one day. Normally, there is a minimum of three bedrooms, a residential licence or equivalent, and a full range of services for guests including all meals.”

According to the Scottish Assessors, Exclusive Use Venues are properties whose typical uses include a venue for weddings, conferences, corporate entertainment and private parties. The key criterion is that the property, or significant parts of it, is rented out to a single hirer at any one time.

Properties may provide facilities that range from purely a function venue, through to facilities that are similar to high quality hotels. The character of the property may range from function halls with little or no outlook, to marquees in scenic locations, grand rooms in historic homes and castles, to country houses and their associated estate. Some exclusive use venues will provide overnight accommodation either in the main building or in lodges at the property or a combination of both. This is the basis on which the rateable value of properties are valued by the Scottish Assessors.

This grant is reliant on the Exclusive Use Venue offering accommodation.

Properties used as short stay accommodation only, such as self-catering units (Commercial Properties Committee Practice Note 17), should not be valued as Exclusive Use Venues. Properties let out on a per room basis akin to hotels should be valued on the Hotel basis (Commercial Properties Committee Practice Note 20).