SCOTTISH business groups have this morning welcomed an extension of grants for firms affected by the coronavirus pandemic.

The Scottish Government had been heavily criticised for awarding single grants of £25,000 to businesses in its emergency support package. This contrasted the position in England, where grants of £25,000 have been offered to each property that a business operates from.

Scottish ministers have responded this morning by announcing around £220 million of further grants for businesses, including support for the self-employed.

The Scottish Government said the extended package includes £120m to extend to Small Business Grant scheme to ensure that in addition to 100 per cent grant on the first property, further grants worth 75% of the initial award will be available to other properties.

READ MORE: Stuart Patrick: Getting cash into business bank accounts from emergency measures is vital

Ministers said further £100m fund has also been made available to protect the self-employed and viable micro and small and medium-size enterprises (SMEs) facing distress because of the fall-out from Covid-19. The fund will be channelled through local authorities and enterprise agencies to target newly self-employed people and businesses who are ineligible for other Scottish Government or UK Government schemes.  

David Lonsdale, director of Scottish Retail Consortium, said: “The economic response to the coronavirus challenge is both broad and complex. Governments have to take bold and unprecedented steps to protect businesses who otherwise may not survive – but of course there is a need to balance support to those who require it.

"Today’s announcement is clearly in that spirit, and retailers will be pleased the Finance Secretary has listened to our representations.

READ MORE: Scott Wright: What will virus crisis mean for Scotland's famous food and drink exports?

“Medium-sized Scottish non-food retail firms are amongst those most vulnerable to the consequences of lockdown and the collapse in footfall and spending. These businesses may operate from multiple sites, but each store is run on a individual basis and each store will need support in order to reopen when we move past this phase. 

"These grants, along with the generous but vital 100% business rates relief, are vital steps in ensuring when we eventually open our doors we can return to vibrant and successful high streets.”

Emma McClarkin, chief executive of the Scottish Beer & Pub Association, said: “This is a hugely welcome announcement from the Cabinet Secretary and one that the SBPA has been pushing the government repeatedly on over the last few weeks. This gives pubs and other hospitality businesses the extra cashflow needed to survive at this time and will also allow more businesses to reopen once the pandemic is over."

Colin Borland, director of devolved nations at the Federation of Small Businesses, said: "This new Scottish Government package should plug some of the most obvious and dangerous gaps in coronavirus support for smaller firms and the self-employed.

“For those that were due to receive nothing – like the new self-employed and some home-based and vehicle firms – this new help could be a lifeline. For others – like smaller chains – it could provide a critical top up to the money already in the pipeline.

“This help looks more flexible than previous schemes, and Ministers in Edinburgh deserve credit for adjusting the help on offer following feedback from firms and the FSB.

“We’ll need to see the swift deployment of this cash. And this looks unlikely to be the end of the story. If we want as many firms as possible to make it through this crisis, then governments north and south of the border may be required to provide additional rounds of help.”

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