Benefits
About
News
Events
Resources
Forum
Your account

Category: Member Benefits

Briefing: The Impact of Covid-19 on Scottish Self-Catering – Financial Support for Operators

Posted on by Fiona Campbell

The following briefing has been sent to all MSPs this afternoon.

Overview

  • Covid-19 has had a devastating impact on Scottish society and the economy. Those in the tourism sector, including self-catering, have been particularly impacted by the restrictions to combat the pandemic.
  • The cumulative impact of these measures, from limits on household gatherings to widespread travel restrictions, means that self-catering in Scotland faces a very bleak winter if no measures are taken to mitigate this.
  • A combination of a non-existent customer base coupled with no financial support from government leaves the sector in an unsustainable position, one that jeopardises the livelihoods of hardworking professionals and the economic benefit they provide to local communities.
  • The Scottish Government should therefore reconsider the eligibility criteria for their financial support for businesses hit by Covid-19 restrictions so that more self-caterers can access these vital funds.

Previous Scottish Government Financial Support

  • Earlier this year, the Association of Scotland’s Self-Caterers was grateful for the financial support provided by the Scottish Government through the grant scheme, although access to these funds was beset by problems concerning eligibility. To rectify this, the Scottish Government created a £1m fund for self-caterers, administered by Visit Scotland and the ASSC, that enabled redress for some of those who had missed out on vital support.
  • Moreover, in the summer, the sector was buoyed by the reopening of tourist accommodation and self-catering led the way with government backed cleaning protocols and the safe reopening from early July onwards.

Effect of Covid-19 Restrictions on Self-Catering

  • However, the accumulation of various coronavirus restrictions since that time has resulted in a deleterious situation for professional self-caterers the length and breadth of Scotland. The restrictions on gatherings to one household has rendered self-catering businesses accommodating 7+ unviable since 23rd September 2020. This accounts for a substantial proportion of the market in Scotland.
  • Furthermore, with the recent restrictions placed on travel, just under half of the Scottish population cannot travel outwith their local authority area and those travelling from the Central Belt (where most level 3 and 4 areas are located) comprise a sizeable component part of the market for rural self-catering properties.
  • Moreover, another key part of the domestic market, travellers from the rest of the UK cannot travel to Scotland at the present time.

The Lack of Financial Support for Scottish Self-Catering

  • In terms of eligibility for a temporary closure grant, self-catering is eligible at Level 4. In respect of business restriction funds, self-catering is not listed in terms of eligibility.[1] As Scottish Government guidance makes clear in respect of both funds “any business not specifically mentioned is ineligible.”[2]
  • Self-catering units outwith Level 4 are thus excluded from business restriction funds, despite the travel restrictions directly impacting bookings, as well the cumulative effect of various Covid-19 restrictions that render self-catering unviable.
  • On 26th November, the Scottish Government’s Tourism Directorate stated:

“Self-catering, B&Bs and Visitor attractions businesses that are in Level 1&2 or Level 3, but are finding visitor numbers lower because of the travel / gatherings restrictions are not eligible for Hardship Fund support.

Funding eligibility is dependent on what level the business itself is in and what direct restrictions are placed on it, rather than its customer base. Indirect restrictions, arising from both travel and socialising restrictions are not a basis for additional financial support.”

  • Self-caterers in Levels 1, 2 and 3 in Scotland are legally able to remain trading, but their business has all but disappeared – yet they have no access to funds to help them through. Alongside the lack of support from the Scottish Government, self-caterers are unable to access various schemes from the UK Government, including Furlough and Self-Employment Income Support, and cannot benefit from mortgage holidays beyond six months.
  • It is our understanding that in England, there is no similar restriction to our sector in respect of the Local Restrictions Support Grant (LRSG Open) which supports businesses that have been severely affected by local restrictions but have not closed. We believe this underlines the importance of ensuring fairness from the provision of business support grants in Scotland and ensuring each and every penny from the UK Government’s business support consequential funding is effectively utilised by the Scottish Government to protect businesses in this country. 

Recommendations

  • We are extremely concerned that we are now at a stage of irreparable damage to the self-catering sector, jeopardising the future of the £723m industry that boosts our tourism economy, and many businesses simply will not survive into the New Year.
  • Other industries who may approach the Scottish Government to present their case for increasing eligibility requirements to include their sector may be in a better position than self-catering to adapt to the coronavirus restrictions. Self-catering has no such luxury: bookings have all but dried up due to travel restrictions affecting the domestic market and those outwith tier 4 areas are ineligible for support. No customers and no government support to tide over operators is an unsustainable position.
  • The ASSC fully recognise that there will be a whole host of competing demands on government funding during these challenging times. However, a key component of Scotland’s tourism industry is in dire need of financial support and we therefore ask that the eligibility requirements are widened so that self-catering businesses across all levels can gain access to desperately needed financial support.

[1] Scottish Government, ‘Coronavirus (COVID-19): Strategic Framework Business Fund’, 10/11/20 Url: https://www.gov.scot/publications/coronavirus-covid-19-strategic-framework-business-fund/pages/eligibility/

[2] Scottish Government, Coronavirus (COVID-19): strategic framework business fund – information for local authorities, 19/11/20. Url: https://www.gov.scot/publications/coronavirus-covid-19-strategic-framework-business-fund—information-for-local-authorities/pages/eligible-businesses/

 

Postponement of Regulations Sought

Posted on by Fiona Campbell

A letter was circulated to the Scottish Government from 38 leading business and tourism stakeholders in Scotland, including CBI Scotland, Scottish Chamber of Commerce, SCDI, UK Hospitality, FSB Scotland, and the STA on 26th October, underlining our concerns and calling for a postponement of the regulations.

During a call with the First Minister last week (11th November), Fiona Campbell, ASSC’s CEO, made the following points:

Concerns with Short-Term Let Consultation

  • The ASSC is extremely concerned at the speed and manner in which the short-term let consultation has been conducted given the changed context since the proposals were first unveiled earlier this year. Covid-19 has resulted in an extremely perilous set of circumstances for tourism – yet the consultation made no reference to the pandemic.
  • The truncated timeline for the consultation, coupled with the lack of a partial Business Regulatory Impact Assessment, which goes against governmental best practice, has heightened our fears about the entire process.
  • Our question is, are the proposals proportionate, and are they targeted?

Economic impact

  • Concerns over the short-term let consultation are not limited to those working in the self-catering/short-term rental industry.
  • The industry-wide letter was a recognition of the fact that self-catering is a crucial component part of Scotland’s tourism industry (and its recovery), generating approximately £723m per annum to the Scottish economy alone – and one which boosts related industries like hospitality through the economic footfall of our guests.
  • The introduction of short-term let regulations comes at a time when many self-catering businesses are facing financial devastation as a consequence of the ratcheting up of restrictions:
    • Our sector can expect to lose as much as £70m in the last three months of 2020 due to cancelled bookings.
    • In a recent ASSC survey, 94% of respondents have stated a negative financial impact of Covid-19 to their business.
  • Without a BRIA, we can’t tell what the negative impact may be. Given the uncertainties just now due to the pandemic, this further uncertainty is rendering the sector untenable. People are fighting for their livelihoods.

Request for Delay

  • Given the huge local and economic impact, and the challenging Covid-19 environment, it is only fair that any regulation must be properly considered and scrutinised. We would therefore respectfully recommend that the Scottish Government should pause their work on the regulations – mirroring the welcome approach taken with the Transient Visitor Levy – so that the industry has time to recover from the devastating consequences of Covid-19.
  • Such an approach would also enable a greater discussion of the consequences of the regulation and ensure that we arrive at a balanced solution that can benefit business and communities.
  • To emphasise, the ASSC are not anti-regulation – we have put forward a series of evidence-based alternatives that could meet your policy objectives in a more cost-effective and proportionate manner – and we remain absolutely committed to working with your government to ensure a positive outcome for Scottish tourism.

FM Statement 10th November 2020

Posted on by Fiona Campbell

During her statement to Parliament, the First Minister covered the following (10/11/20):

  • The FM confirmed that additional 832 new cases of COVID-19 had been identified, bringing the total to 75187. She also confirmed that 1239 people were in hospital, with 102in ICUs. She further confirmed that there had been 39 additional death reported in the previous 24 hours bringing the total to 3079.
  • Prior to outlining the revised level, the FM praised the effect that the restrictions had been having but also warned viewers not to expect many council areas to be reclassified.
  • The FM confirmed that no local authority would move to a lower tier, stating “It would not be prudent to ease restrictions today. While no local authority will move to level 4 this week, there are a number that are giving us some cause for concern and we will be monitoring these particularly closely over the next few days.”
  • Highland, Orkney, Moray, and Shetland were announced to be remaining in level 1.
  • The FM announced that, in the island authorities, people will be able to meet in one other household with a limit of six people.
  • The FM confirmed that Aberdeen City, Aberdeenshire, DNG, Borders, and Argyll and Bute would remain at level 2
  • The FM also confirmed that Angus, Fife, and Perth and Kinross would move to level 3 from Friday. “The advice of the Chief Medical Officer and National Clinical Director is that level 2 restrictions may not be sufficient to slow down and reverse increases of this magnitude and, as a result, an early move to level 3 was strongly recommended.”
  • The FM also noted that the level 3 areas were under constant review, indicating that some were close to level 4, but that no areas were to be put into level 4 at the moment.
  • On the subject of travel restrictions, she said: “Let me stress the travel restrictions that remain essential to tackling the virus. These will remain in guidance over the next week but we continue to prepare the regulations, and resolve the practical issues, that would be required to put them into law.”
  • The First Minister also reiterated the current guidance, “If you live in a level 3 council area, do not travel outside your own local authority area unless it is for essential reasons such as work that can’t be done at home, healthcare, or caring responsibilities. And if you live elsewhere, do not travel into a level 3 area, except for those same essential purposes.”
  • The Covid protection level (tier) for each of Scotland’s local authority areas and guidance on what you can and can’t do has been published on the Scottish Government website here.
  • The FM closed by reiterating the rules that are currently in place as well as the FACTS guidance.
  • In the questions session, Scottish Conservative Holyrood group leader, Ruth Davidson, quizzed the FM on her plans for the imminent Pfizer vaccine, Scottish Labour leader, Richard Leonard, pressed the FM on the restrictions and their legal enforceability, Green co-convener, Alison Johnstone talked about the UK Government, Scottish Liberal Democrat leader, Willie Rennie, clashed with the FM on student testing. Further, Both Maurice Golden and Bruce Crawford asked the FM about the support available to the tourism and hospitality sector, mentioning self-catering specifically.