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UKHospitality Scotland has warned that the new government financial support will not be enough to prevent some hospitality businesses from collapsing and losing jobs.
The Scottish government has announced that, in addition to the grants businesses receive through the Strategic Business Framework Fund, eligible businesses will also get a one-off grant of £25,000 for larger hospitality businesses on top of the 4-weekly £3,000 and £6,000 for smaller hospitality businesses on top of the 4-weekly £2,000.
Willie Macleod, executive director for UKHospitality Scotland, commented that whilst additional financial assistance is always welcome, it’s not going to be enough.
He said: “The sector’s ability to generate any sort of income is almost non-existent, particularly for businesses in mainland Scotland. Financial support must go further if we want businesses to stay afloat and jobs to survive.
“Hospitality has the potential to drive Scotland’s economic recovery once the crisis has passed. We provide jobs right across the country and we can play a pivotal role in getting people out and about, investing in their communities again.”
He added: “We can only do this if businesses have not gone under in the meantime. We need the support now, otherwise we will not be able to help in the weeks and months ahead.
“We need confirmation that the VAT cut and business rates holiday will be extended. This will, at least, give hospitality businesses some sense of stability and allow them to plan for what is going to be a very difficult year.”
