Covid in Scotland: Call for faster support for businesses

The coming lockdown could be "the final nail in the coffin" for some Scottish businesses if support is not delivered faster, Ruth Davidson has warned.

The Scottish Conservative group leader said small firms were "close to broke" after a year of Covid-19 restrictions.

She said the government must pay out promised support grants more quickly, as much of Scotland enters level four.

First Minister Nicola Sturgeon insisted that business was not an "afterthought" and that the curbs were necessary.

And she said the finance secretary was "urgently" examining what extra support could be made available, with the entire Scottish mainland to enter the top level of restrictions from Boxing Day.

Pubs, restaurants and cafes have to close in level four areas for all but takeaway services, while the government is tightening the definition of "essential" retail which will see more stores close.

The level four curbs could yet be strengthened further, with National Clinical Director Jason Leitch telling Holyrood's Covid-19 committee on Wednesday morning that "we will have to keep everything on the table".

He said if the new faster-spreading strain of coronavirus has a serious impact, Scotland could go "back to March, rather than November", adding that a "stay at home" message could be put down in law.

Ms Sturgeon said she knew the extra period of closure would be "very difficult to bear" for many, saying that "if I thought there was another way to do this, I would grasp it in a heartbeat".

Firms which are forced to close their doors by the new measures will be able to apply for a support grant of up to £3,000, depending on their rateable value, for every four weeks of restrictions.

Those which can remain open but have to modify their operations due to the restrictions will be eligible for a payment of up to £2,100.

A series of additional schemes have also been promised to target groups including taxi drivers, hairdressers, tourism firms and the wedding sector.

And the UK government has announced a further £400m of funding for the Scottish government's relief efforts, bringing the total extra spending to £8.6bn since the spring.

At First Minister's Questions, Ms Davidson read out a series of messages from business owners "terrified" that they would go bust, saying they were "bleeding money" and "close to broke".

The MSP said there were still 15,000 firms waiting for payments to be made from previous grant schemes, five months after they closed, saying the government was "far too slow in getting support out the door".

She said: "Most small businesses understand the need for these new restrictions. What they don't understand is why they and the jobs they support are so often treated as an afterthought by this government."

Ms Davidson urged the first minister to "deliver on her promises and free up the millions of pounds that has been passed to the Scottish government".

Ms Sturgeon insisted it was "not the case" that businesses were an afterthought, saying her government was operating in "horrendously difficult circumstances".

The first minister said support schemes were open now and "every penny" of funding available was being allocated, but said she had to "look ahead and make sure we are budgeting to get us through the remainder of the financial year".

Ms Davidson said MSPs had been "inundated with desperate pleas for help from businesses and workers across the country".

She added: "We keep hearing the same thing - these multi-million pound support schemes may sound good when they're announced, but their delivery is opaque, confusing and slow."

Ms Sturgeon accepted the government had moved quickly to impose the level four curbs, but said this was necessary to contain the new strain of the virus.

She said: "In doing the really difficult things we're doing right now to suppress this virus, we are providing a more sustainable recovery for the economy in the medium to long term.

"If we allow this virus to get out of control, experience tells us that the damage to the economy is longer lasting and deeper than it would have been.

"That does not take away the short term pain and I am acutely aware of that."