Scotland's Economy

Finance Secretary update on COVID-19 business support

January 20, 2021 by 6 Comments | Category Business

Finance Secretary Kate Forbes has written to businesses today to provide an update on support for businesses during the pandemic.

Over a third of overall COVID-19 funding has been spent on business support. Ms Forbes confirmed that more than 90% of all funding announced is live, with some smaller schemes due to come on stream in the coming weeks. She also thanked businesses for their continued co-operation and help to suppress the virus.

Read the full letter below.

Letter to Scotland’s businesses

We started 2021 in a way none of us envisaged nor wanted, with additional national restrictions now in place to limit the spread of the new strain of COVID-19, protect our NHS and save lives.

Before I go any further, I would like to take the opportunity to thank you on behalf of the Scottish Government for all that you have done to protect employees, reduce transmission and contribute to the national endeavour. I recognise that it has been incredibly difficult.

Across the country, your support and actions have been vital to our collective efforts.

It is therefore, with genuine regret, that we have asked for even greater adherence and your continued support. As you are aware, there have been two significant developments in our fight against COVID-19. Firstly, and positively, the approval of COVID vaccines has enabled us to implement a massive rollout programme. Alongside this development, however, we now see a new, faster spreading variant of the virus.

As the First Minister has said, we now face a situation comparable to a race – between rolling out the new vaccine and the rapid spread of the new variant which is 70% more transmissible. We have prioritised the speeding up of our vaccination programme and taken immediate steps to reduce the spread of this new variant.

We are immensely grateful for your co-operation to help us suppress the virus. The law now requires people to stay at home unless leaving for essential purposes so we are now asking every business to reconsider whether there are any functions of your site operations which can be transferred to a home working environment. Where employees do need to be in work, now is the time to continue taking steps to stop transmission e.g. regular cleaning and making sure people stay 2 metres apart. We have also increased the social distancing requirements in cafeteria/rest areas from 1 to 2 metres.

Given the importance of minimising household mixing, workers should only be entering other people’s homes to carry out work where that work is absolutely essential.

Unfortunately, we reluctantly took the decision to close schools and our early learning facilities. I know this will have significant impact on your business and your employees, in both the work and home environments. May I thank you for the extensive support and flexibility you have already afforded to your employees in this situation and with other caring roles. At the end of this letter there is a link to our revised guidance covering Key Workers and the additional support available which you may find helpful.

If any of your employees are in the “shielding” category, our clear advice is that they should not go into work at all. Our Chief Medical Officer has written to those individuals directly. This letter represents a “Fit Note”. Again, we are asking for your empathy and support to help us reduce the spread of the virus amongst this key category of workers.

We have also had to continue and expand the restrictions placed on the retail sector and their supply chains, hopefully for a temporary period.

I know this is not the position we wanted to be in. We are very conscious of the immense impact this is having on your business, your employees and your own wellbeing. We have already introduced a package of business and financial support working with our local authorities and enterprise agencies and I am continuing to review this, driven by business feedback, to ensure that we continue to do all that we possibly can. I have included further information on the support available below.

I know that we have asked a lot from business over the last 10 months. All your efforts have been invaluable at both sustaining as many jobs as possible, and keeping our economy running.

The First Minister has set out this week that the current restrictions will be in place until the middle of February with a further review taking place on 2 February. We commit to not keeping restrictions in place any longer than is absolutely necessary.

To enable us to emerge from this situation as soon as possible and reopen our economy, please continue to encourage and enable anyone connected to your business to report symptoms and for employers and employees to follow the public health advice. The more people who have downloaded and activated the Protect Scotland app the better we can protect and trace people.

Our economic future relies on protecting the health and wellbeing of all of Scotland. I am grateful for your continued support in working with us to overcome at what we sincerely hope is our final hurdle.


Available business support

Information on all funds available for businesses is available on the Find Business Support website: a third of overall funding spent on Covid-19 has been spent on business support. Right now, 90% of all funding announced is live, with some of the smaller schemes due to come on stream in the coming weeks.

The Strategic Framework Business Fund is the main source of support for businesses as all non-domestic-rated businesses that are required by law to close are eligible for grants, with almost 50,000 businesses across the country currently able to apply.

Applications are made through local authorities. A business only has to apply once and they will then receive the four-weekly recurring grant for as long as they remain eligible:
– temporary closure grant – £2,000 or £3,000 (depending on rateable value) if a business is required to close by law
– business restrictions grant – £1,400 or £2,100 (depending on rateable value) if a business can remain open but is specifically required to modify its operations by law

In addition to the Strategic Framework Business Fund, there are additional funds to target financial support at those businesses and sectors that are not eligible. These are set out below.

The following targeted grant schemes are now live:
Taxi and Private Hire Fund
Creative Freelancer Hardship Fund
Museums Recovery and Resilience Fund Top up
Travelling Show People Support Fund
Culture Collective Fund
Youth Arts Access Fund
Creative Communities
Sector and Destination Operational and Market Readiness fund
Scotland Pivotal Event Business Fund

Funds going live this month are:
Mobile Close Contact Services Support Fund including driving instructors and
Newly Self-Employed Hardship Fund
Outdoor Tourism Sector Recommissioning Fund
Travel Agents Fund
Wedding Sector Support Fund
Events Industry Support Fund
Grassroots Music Venue Stabilisation Fund
Brewer Support Fund
Indoor Football Centres Fund

Funds due to go live in February are:
Tour Operators Fund
Visitor Attractions Fund
Ski Centre Support Fund
Visitor Accommodation Hostels Fund
Large (7 or more guests) Self-Catering Grant
Exclusive Use Grant Self-Catering

We recognise that some sectors require further support which is why a number of the above funds are now in the second round of funding including the Newly Self-Employed Hardship Fund.

Links to useful information and advice for businesses and employees

Further detail on the new restrictions can be found on the Scottish Government website at

More information on the virus and measures to stop its spread can be found at

NHS 24 also has a Covid helpline 0800 028 2816 for those who do not have symptoms but who have concerns and are looking for general advice.

Further guidance that identifies categories of key workers for prioritisation on school access found on the Scottish Government website at:

Food Standards Scotland guidance for different sectors and food related businesses and a risk assessment toolkit can be found at:

Guidance for schools, local authorities and parents setting out plans for a phased start to the spring term 2021:

Parent Club Coronavirus microsite:

Parent club FAQ on childcare options during current restrictions:

Breathing Space website – information and support on mental health: or call 0800 83 85 87


  • George russelll says:

    I was just wondering why self catering grant top up of six thousand pounds doesn’t apply to self catering businesses as we are in the hospitality trade the same as b&b and hotels we have had no bookings since last March so I think it’s very unfair as we need that money as bad as anyone else.

  • Jane Irvine says:

    And still nothing for dog groomers ?

  • Lynette whyte says:

    Why are the councils not paying out to dog groomers. Why do we not matter. Open for welfare is a joke I’ve done zero welfare dogs. I did one last year. I’ve got a 21 year old successful business here that is now in jeopardy. The stress of closing my business and now getting no help. I’ve a massive tax bill next week if I pay it my business will suffer badly. I’m hoping you can help

  • Chris says:

    I was under the impression there was going to be a grant for b&b’s who pay council tax ? I don’t see this on the list above , are we even going to get anything?

  • Neil Paton says:

    Why is there no support for the small businesses who are classed as essential and therefore forced to stay open and yet our customers are told to stay at home so our takings are dramatically falling and yet we do not qualify for any government funding or grants

  • Nick Reddington says:

    When will the close contact grants be available.

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