Scottish Government announced top-up funding for hospitality, retail and leisure firms

Scottish Government announced top-up funding for hospitality, retail and leisure firms

Kate Forbes

A significant top-up to the grant support available for hospitality, retail and leisure businesses across Scotland closed by level 4 restrictions will be paid following an announcement by finance secretary Kate Forbes.

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
  • £6,000 for smaller hospitality businesses on top of the 4-weekly £2,000
  • £9,000 for larger retail and leisure businesses on top of the 4-weekly £3,000
  • £6,000 for smaller retail and leisure businesses on top of the 4-weekly £2,000

In most cases, eligible businesses that have already applied for the 4-weekly payment from the Strategic Framework Business Fund will get an automatic top-up.



For the majority, this top-up will be combined with the next tranche of payment for the Strategic Framework Business Fund due to go to businesses on 25 January.

Businesses that haven’t yet applied for either of these funds should submit an application as soon as possible through their local authority website. Applications are now open.

Ms Forbes said: “Since the start of the pandemic Scottish Government support for business and the economy has reached almost £3 billion - more than a third of our total coronavirus funding, demonstrating our commitment to provide as much help as we possibly can to our businesses.

“As promised, this additional support for hospitality, retail and leisure businesses will be available this month, in some cases doubling or tripling the amount of support we are providing. Applications are open now and payment will be made this month.

“Crucially this essential funding will also help to close the gaps in UK-wide support for these impacted sectors and our one-off support for larger hospitality premises of £25,000 is considerably more generous than the £9,000 grant on offer in England.

“I’d encourage all eligible businesses to apply through their local authority if they have not done so already. Of course we are acutely aware that this support can never compensate for the full impact on business, but we must work within the resources that are available to us, and we continue to respond to the evolving economic challenges arising from the pandemic.”

David Lonsdale, director of the Scottish Retail Consortium, added: “Shops and high streets across Scotland have been left reeling by coronavirus. These enhanced cash grants for retail business are a financial lifeline which will help non-essential stores through the current phase of being unable to open and trade.

“There isn’t a taxpayer-funded support scheme which can replace the potential losses of store closures, so it is very encouraging that the Finance Secretary has listened and responded positively.”

Tracy Black, CBI Scotland director, said: “The announcement of a further extension to COVID-19 support grants for the hospitality, leisure and tourism sectors is welcome and will undoubtedly help some of Scotland’s hardest-hit firms as they struggle with evaporating demand and day-to-day cashflow challenges.

“There is however no doubt that severe restrictions, while both understandable and necessary, are having a significant impact on jobs and livelihoods across the Scottish economy. All firms, including across vital supply chains, are experiencing huge challenges, in turn weakening the foundations for economic recovery. 

“Any potential further restrictions – particularly for vital sectors like manufacturing and construction – must be transparent. After 10 months of adaptation, closure and sacrifice, businesses need to see clear evidence for these decisions.”

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