Applications for new grants scheme to go live on October 20

Details announced as first minister says current restrictions will be replaced by ‘tier system’ later this month

Scottish Parliament

APPLICATIONS for the new Scottish Government grant scheme will open on Tuesday October 20.

The Scottish Government announced £40 million in funding to coincide with the latest coronavirus restrictions, which have seen alcohol sales banned indoors across Scotland and licensed premises in the central belt forced to close their doors.

A COVID-19 Restrictions Fund will be available for businesses forced to close. It will offer grants of £2000 to premises with a rateable value under £51,000, with £3000 grants for premises with a rateable value over £51,000. Businesses operating multiple premises can apply for multiple grants, up to a total of £15,000.

Businesses that remain open but have been impacted by the new restrictions can apply for a business hardship grant of either £1000 or £1500 depending on their rateable value. Multiple operators can apply for multiple grants, up to a maximum of £10,000.

In order to qualify for a hardship grant a business will be required to show that it has suffered a 25% reduction in turnover since the restrictions were imposed.

Both types of grant will be distributed by local authorities, with applications due to go live on local authority websites on Tuesday, October 20. Applications will close on Tuesday, November 3.

The Scottish Government will also “work with the STUC, employer organisations and HMRC” to cover the cost of keeping workers on furlough by providing the 20% employer contribution required by the UK Government. The Scottish Government has said this will be provided on a “targeted” basis.

The news comes as first minister Nicola Sturgeon confirmed that the current restrictions will be replaced by a new ‘tier’ system similar to that in place in England from October 26. More details of the system will be announced shortly.