The Scottish Government has published new statistics showing that more than £240m of grant funding was distributed to Scottish businesses in January. Ministers also announced a significant expansion of the Local Authority Discretionary Fund.
Andrew McRae, the Federation of Small Businesses’ (FSB) Scotland policy chair, said: “These figures suggest that the logjam preventing lifeline funds reaching local businesses has been cleared. But while more cash is reaching eligible independent firms, that’s of little help for businesses who find they’re excluded from the support on offer, despite the slew of schemes in place.
“More discretionary funding for councils may help. But Ministers need to think carefully about how to ensure that funding reaches businesses that need it most, rather than those most adept at navigating the bureaucracy.
“Worryingly, we’re hearing from lots of deserving firms whose markets have evaporated that can’t access help. Often these businesses aren’t closed by law, but don’t have any customers to serve.”
The statistics show that only half of all Scottish local authorities have started paying out grants to taxi drivers through the dedicated fund for these operators. Only seven per cent of drivers in Glasgow have been contacted about the scheme.
Andrew McRae said: “While these statistics only cover the first ten days of this scheme’s operation, there’s obviously work to do to ensure it delivers what’s been promised. When these sorts of schemes stutter and stall, we see independent firms and the self-employed lose faith in the Scottish Government’s overall approach.”
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