Renfrewshire Council has unveiled plans for a £1.3 million package of support designed to help local businesses after the coronavirus lockdown.

The proposals – including crisis loans, grants and advice services – were based on the results of a survey of local firms run by the council and Renfrewshire Chamber of Commerce.

The council and chamber between them spoke to more than 500 companies – around 10% of Renfrewshire’s businesses – by phone and email to understand the issues they are facing and what would help them emerge from lockdown.

Members of the council’s emergencies board will this week be asked to approve proposals for several new funds targeting short-term support to the local economy.

READ MORE: Aberdeen engineering group hails potential of hydrogen energy project

It includes £500,000 for zero-interest business restart loans of up to £5,000 to help small-and-medium-sized business with short-term cashflow, and £400,000 for grants of up to £10,000 to help sustain businesses and plan for growth in the medium term.

It also includes £250,000 for grants of up to £2,500 to help businesses adapt their premises to allow for physical distancing and £150,000 to help fund expert advice to businesses in crisis and self-employed people over training and access to funding.

The money is coming from within existing council budgets for business support and is expected to be the first stage of a longer-term economic recovery plan being developed by the council in partnership with the local business sector through the Renfrewshire Economic Leadership Panel.

If the proposals are approved when the board meets on Friday, council officers would put in place and promote a process for firms to apply for the support from mid-August.

The measures are being announced in the same week as Scotland’s non-essential shops, bars and restaurants are allowed to reopen, and as the council launches its Renfrewshire Spend Local campaign, encouraging residents to support local traders.

Renfrewshire Council leader Iain Nicolson said: “We understand the devastating impact of coronavirus on our local businesses and that some very challenging months lie ahead for them while the country emerges from lockdown.

“We and the Chamber have spent the past few months having in-depth conversations with hundreds of our businesses to develop a detailed understanding of what the council could do to help.

“What they told us is that cashflow and reduced sales were the biggest issues, along with adapting to physical distancing and new regulations – and the package of measures we are now putting forward were designed around that.

“Although there is a very challenging financial outlook for the council too, we have prioritised this investment because we are determined to do all we can to help keep as many local businesses as possible trading and to help keep people in jobs.

“And while we hope this package of support will – if approved - make a difference, we are at the same time calling on all residents to do what they can to help support local businesses. Money spent in the local area will support your local community, so please Spend Local if you can.”

Renfrewshire Council has already distributed more than £26m of financial support to local business through various Scottish Government funds designed to mitigate the effect of coronavirus.

Brewing giant Heineken has slashed the value of its assets by 550 million euros (£500 million) after the mass closure of bars and pubs dragged it to a loss in the first half of the year.

The Dutch brewer said that it expects to have posted a net loss of 300 million euros (£272.7 million) in the second quarter of 2020 after being hit by the write-down.

READ MORE: North Sea heavyweight ramping up production West of Shetland

The Amstel and Birra Moretti owner said sales plunged after global lockdowns heavily dented its on-trade business, which covers bar, pub and restaurant sales.

Net revenues for the half-year tumbled by 16.4% after it sold significantly lower volumes.

It said the impact of the coronavirus crisis deepened in the second quarter of 2020, with revenues reaching a "low point" in April.

However, it said it saw sales volumes "gradually recover" in June as lockdowns were lifted across the world.

Beer volumes were particularly impacted in the Americas, Africa, Middle East, and Eastern Europe, it said.

Its European arm saw a "high single-digit decline" in volumes, with the company hailing the performance of its eponymous Heineken brand.

The brand delivered "double-digit growth" over the past six months in a raft of markets, including the UK.

In a statement, the company added: "Heineken has entered the crisis with great brands, and a dedicated and talented workforce.

"The company has a strong balance sheet as well as undrawn committed credit facilities."

William Ryder, equity analyst at Hargreaves Lansdown, said: "People have been enjoying a pint since the dawn of agriculture, and they're not going to stop any time soon.

"This summer has been painful for Heineken, and the balance sheet may force some hard decisions in the future, but in the long run, we think they'll do just fine.

"The brands are still strong and, though it may take some time, once the pubs get back into full swing, profits should pick back up."

Recruiter Hays has warned that surging costs are set to see it slump to a loss over the summer as the coronavirus crisis sent UK and Ireland fees plunging by more than 40%.

The group has axed around 1,000 roles, or 9% of its global workforce, and slashed costs by more than a fifth to around £58 million in the three months to the end of June.

READ MORE: Scottish medical technology firm to create 60 jobs

But it cautioned that costs will begin to jump as it returns to more normal working practices, reversing voluntary pay cuts and as workers return from furlough.

This, combined with the tough job market conditions, is set to see the group become "modestly loss-making" over the summer months as it enters its new financial year, it said.

Shares fell 3% as the group also revealed it expects 2019-20 underlying operating profits to nearly halve to between £130 million and £135 million from £248.8 million the previous year.

Fourth-quarter like-for-like group net fees slumped by more than a third - 34% - though cost-cutting helped it remain "broadly" break-even in the three months to June.

The UK and Ireland, which accounts for 21% of group fees, was its worst-hit region amid an "extremely tough market", with net fees down by 42% - and falling 46% in the private sector.

It comes as official UK data on Thursday revealed nearly 650,000 workers on company payrolls have lost their jobs since March, with vacancies falling to a record low of 333,000 as companies froze hiring in the face of the pandemic.

Alistair Cox, chief executive of Hays, said: "The pandemic has severely impacted all our markets globally.

"Looking ahead, although the outlook remains highly uncertain, there are tentative signs of stability," he added.

Hays said the London market held up better than the UK average, with fees falling by 37%.
The North West recruitment market suffered in particular, seeing fees plunge 53%.

The IT sector was robust, with a fee decline of just 9%, but accountancy and finance and office support markets were much tougher, both seeing falls of 53%.

Hays took action to rein in costs amid the lockdown and said that alongside the job cuts, 18% of staff were either in job support schemes, short-time working arrangements or had voluntarily reduced their pay, including senior management, at the end of June.

You can now have the bulletin and the top business news stories sent direct to your email inbox twice-daily for free. Simply tick Business Bulletin AM edition and Business Bulletin PM edition, and Business Week for the weekly round-up on Sunday, in the newsletters section here to sign up:

https://www.heraldscotland.com/my/account/register/