The measures include:

• Payment of February business grants at Level 4, whatever level a business is in
• 100% non-domestic rates relief for retail, hospitality, and leisure businesses being extended for three months into the 2022 financial year, funded by money generated from supermarkets and other large retailers.

However, SHG has said more immediate financial help is still needed, that the UK government must extend and improve furlough, as this has a massive financial burden on business owners with NI contributions, and that the Scottish Government must support the hospitality industry if – as Kate Forbes predicts – the economy is to return to growth across 2021 and 2022.

Earlier this month, the SHG revealed that its members had suffered their worst December’s trading in living memory and had taken on more than £16m of debt since the first lockdown started.

Although the financial pressures on the industry are still on the rise, this small piece of support has come at a crucial period for the industry, as thousands of hospitality businesses across Scotland remain uncertain of when they will be allowed to open in the future.

With previous support from the Scottish government criticised for barely covering the costs of fixed overheads, this does not go far enough to provide businesses with some form of hope and stability in an industry that has faced significant disruption.

Stephen Montgomery, spokesperson for SHG, said: “It is welcome that the Scottish Government has recognised the enormity of the challenges facing our national hospitality in its budget statement. However, what matters is how businesses across the industry can actually survive.

“Over the past six months, the Scottish Government has regularly over-promised and under delivered for our sector. Thousands of hospitality businesses and employees across Scotland cannot
afford for them to do so again.”

The Scottish Hospitality Group has also finalised its manifesto for how the government and industry can work together, which will be shared with existing politicians and election candidates.

The manifesto calls for immediate support to allow viable businesses to survive and sets out the measures required to restore jobs and keep the industry alive to lead the economic recovery. Key demands in the manifesto include, waiving busines rates until at least March 2022, supporting a permanent reduction in the VAT rate to 5% on food services and accommodation and introducing specific grant schemes to help the hardest hit sectors especially drink-led venues, nightclubs, and wedding venues.

Mr Montgomery added: “It’s crucially important that the Scottish Government continues its dialogue with industry to ensure Scottish hospitality businesses are adequately supported throughout this pandemic and are in a strong position to support the country’s economic recovery.

“Our manifesto is the first step in setting out what the sector needs from the government and we hope that the Cabinet Secretary for Finance and the First Minister will listen closely to our proposals.”