Coronavirus (COVID-19): Strategic Framework Business Fund

Coronavirus (COVID-19): Strategic Framework Business Fund

These grants form a new package of support to help businesses closed or impacted by coronavirus protective measures.

Local authorities will administer the grants and will be responsible for delivering the funding to eligible businesses. The Scottish Government will fund local authorities to make these payments, providing information on funding levels and periods each time levels change.

Application forms are available on individual council websites and should be filled in on-line and submitted through the council’s website (if available) or returned to councils by e-mail only.

Applications can be made up to 31 March 2021.

There are two funds available:

Business temporary closure fund

The temporary closure grant will offer business required to close by law:

  • £2,000 for premises which have a rateable value of up to and including £51,000
  • or  £3,000 for premises which have a rateable value of £51,001 or above

The grant is payable for every four weeks for the duration the protective measures to close the business apply.

The rateable value of the property is considered to be as per local authority records at 1 November 2020.

Multiple properties: an upper limit of £15,000 in total in any four-week period will apply to any eligible business operating multiple premises, and subject to compliance with EC State Aid Limits (see below for more on EC State aid limits).

Business restrictions fund

The restrictions fund grant will offer businesses specifically required to modify their operations by protective measures, as specified by law:

  • £1,400 for premises which have a rateable value of up to and including £51,000
  • Or £2,100 for premises have a rateable value of £51,001 or above

The grant is payable for every four weeks for the duration the protective measures to close the business apply.

The rateable value of the property is considered to be as per local authority records at 1 November 2020.

Multiple properties: an upper limit of £10,500 in total in any four-week period will apply to any eligible business operating multiple premises, and subject to compliance with EC State Aid limits (see below for more information).

To Find Out if You are Eligible – Read More Here

 

New Restrictions: What do they Mean?

A new five level system for Scotland will come into place on Monday 2nd November at 6am.  But practically speaking, what does this mean?  There is a great deal of confusion about the levels and they were not set in stone until Wednesday evening after the Scottish Government’s Parliamentary debate.  The current situation is explained below:

At the First Minister’s stated that the level a local authority will be placed in will be reviewed weekly.  The proposals will be put to Parliament every Tuesday and the changes will take effect every Friday.  Premises will therefore have three days warning of changes coming into effect.  The next update will be Tuesday 10th November, changes will come into effect from Friday 13th November and it will follow that pattern weekly thereafter.

Levels will be applied to a whole local authority area from 6am on Monday 2nd November, but the Scottish Government will review that and Council areas may be divided into sub areas if that is deemed necessary.

There will be no automatic application of a single statistic – the First Minister said these only inform and guide and the Scottish Government will, at first, be deliberately cautious.  The hope is to slow rate of new cases and the overall aim is to get every Council area to level 1 then level 0 of the framework.

While people should be able to meet in level 1 indoors, there is no indoor meeting allowed at present unless in a hospitality setting. This may change soon for those in level 1.

Dundee City was hoped to be in level 2 but is in level 3 due to statistics.

North and South Lanarkshire could still end up in level 4 depending on statistics which are being reviewed daily.  The decision on whether to move these Councils into level 4 will also be reviewed daily – not very helpful for hospitality venues with perishable stock and staff rotas completed who may have to close at less than 24 hours’ notice.

The First Minister stated all businesses affected can get help through the findbusinesssupport.gov.scot website.

A Christmas Loneliness strategy was also discussed. It is hoped the licensed and hospitality trades will be able to be open for Christmas and numbers able to meet indoors or in hospitality venues will be extended to facilitate family and friends meeting over the festive season and avoid loneliness and isolation.

The Scottish Government says it has expanded testing and will be taking steps to better support individuals, especially re self-isolation.  A post code checker will be introduced to help businesses and individuals identify what area they are in therefore what level they fall into at any time.  This will be particularly important if Councils are divided into sub areas as boundaries can be blurred and individuals and businesses need to be clear on what they can and cannot do.

The Council areas allocated to the various levels at present are:

  • Level 1 – Highland; Moray; Orkney; Shetland; Western Isles
  • Level 2 – Aberdeen; Aberdeenshire; Angus; Argyll & Bute; Borders; Dumfries & Galloway; Fife; Perth & Kinross
  • Level 3 – City of Glasgow; City of Edinburgh; Clackmannanshire; Dundee; East Dunbartonshire; East Lothian; East Renfrewshire; East Ayrshire; Falkirk; Inverclyde; Midlothian; North Ayrshire; North Lanarkshire; Renfrewshire; South Ayrshire; South Lanarkshire; Stirling; West Dunbartonshire; West Lothian
  • Level 4 – no Council area is in level 4 although there was discussion that North and South Lanarkshire could still end up in level 4 depending on figures.

What do the various levels allow?

  • Level 0 – Eight people from up to three households can meet indoors (with limited exceptions); fifteen people from up to five households can meet outdoors. Different rules apply to children and the Scottish Government will confirm this.  Licensing curfews will be put in place and eating and drinking may only take place seated at tables – no vertical drinking (or eating).  Takeaways are permitted for alcohol and food. Exceptions apply – hospitals, schools, student accommodation, airside premises, and hotel room service and meals for residents are excluded. Self-catering accommodation, hotels, B&Bs, self-catering, caravan and camp sites can open but restrictions above regarding socialising, hospitality rules and travel restrictions apply.  Self-catering properties are still regarded as a private home so are still subject to the restrictions re numbers able to meet indoors. Non-essential travel is not allowed from a level 0 area to a level 3 or higher areas nor to equivalent areas in the rest of UK but there are exemptions for essential travel for work, education, shopping, health, outdoor exercise, weddings and funerals, shared parenting and transit through restricted areas.  International quarantine regulations apply but otherwise travel is unrestricted.
  • Level 1 – Six people from two households can meet indoors and outdoors but not from 2nd November.  That will apply only outdoors and even level 2 areas cannot meet other families indoors except for the limited restrictions.  Hospitality would in general be open but there will be a 10.30pm curfew. Weddings and life events are restricted to a maximum of 20 people. Indoor contact sports for adults are not permitted. Only those who cannot work from home can go to their place of work.  Informal childcare is allowed
  • Level 2 – No indoor meeting is allowed, with limited exceptions.  Six people from two households can meet outdoors and in hospitality settings. Licensed premises can only serve alcohol indoors with a main meal and only until 8pm. Premises can serve food, non-alcoholic and alcoholic drinks outdoors until 10pm.  Cinemas, bingo halls and amusement arcades can open.  Gyms can open.  Other leisure and entertainment premises are closed. Informal childcare is allowed.
  • Level 3 – Cafes, pubs and restaurants can open until 6pm to serve food and non-alcoholic drinks but no sale of alcohol indoors nor outdoors.  Leisure and entertainment venues, including cinemas, will be closed. Non-essential travel is not allowed out with an area in level 3.  Indoor exercise is restricted to individuals – no dance or spin classes. Informal childcare is allowed. No indoor meeting is allowed, with limited exceptions. Accommodation, hotels, B&Bs, self-catering, caravan and camp sites can open but socialising, hospitality rules and travel restrictions apply. The Scottish Government guidance advises non-essential, leisure and tourism use is only to be by locals. Essential travel such as work-related travel can continue.

In summary, level 3 for restaurants, cafes, bars, public houses means indoors and outdoors – no alcohol; 5pm last entry; 6pm closed (a hard close – no drinking up time)

  • Level 4 – similar to lockdown restrictions in place from March to July. Schools remain open but all non-essential shops, pubs and restaurants, gyms, libraries, barbers and hairdressers are closed.  Some outdoor meeting will be allowed but that has to be clarified.

Thanks to Joanna Millar, Legal Director, Gilson Gray LLP for this briefing.

The ASSC asked the Scottish Government to consider various issues in advance of the announcements today: Strategic Framework Points for Clarification. We very much hope that these points have been considered and will be addressed in the coming days.

The Scottish Government will issue a Q&A document tomorrow, which we will distribute as soon as we can.

Read the Scottish Tourism Alliance’s response.

STA Responds to First Minister’s 5 Levels Announcement

“Our industry has been bracing itself for today’s announcement around the tightening of levels of restrictions which will come into force on Monday and the expected wave of cancellations throughout Scotland’s hospitality and tourism sectors which will happen as a result.

“As an industry, we have always understood the need to balance public health and the economy, however we are now at a point where many hundreds of businesses simply do not have the income or funding support to remain solvent. Businesses in Tier 2 areas had hoped for an upturn in business following the slight ease of restrictions as the majority of custom in Tier 2 would have been likely to come from the Central Belt area, however due to the new travel restrictions, this will not be possible.

It is absolutely critical now that all tourism and hospitality businesses impacted by these restrictions in whatever tier they are in have immediate access to a strengthened package of support from the Scottish Government to enable them to meet their overheads and retain what staff they had hoped to keep on their payroll over the coming weeks and beyond to avoid permanent closure and a significant wave of redundancies.

The STA has formally requested a meeting with the First Minister to discuss the impact of the new restrictions and our renewed call for a robust package of support for the sector.”

Marc Crothall, Chief Executive, STA