FINANCE Secretary Kate Forbes has defended the Scottish Government’s “partial u-turn” on business support - and hit back at suggestions she should top up funding with Holyrood's own cash.

Earlier this week, the Scottish Government announced that emergency funding will now be handed out by property, rather than by business - similar to the model used by the  UK Government. 

But small business rate payers will only be eligible for a 75% grant on all subsequent properties. 

In Wales and England, all small business properties are eligible for 100% of the £25,000 grant.

During Holyrood’s first virtual members’ questions session, Conservative finance spokesperson, Donald Cameron, quizzed Ms Forbes over the “partial u-turn”.

READ MORE: Scottish ministers unveil virus grants U-turn

He said: “When the Scottish Government has decided to delay various policy initiatives such as aspects of social security and early years nursery expansion, as a result of coronavirus, surely the Cabinet Secretary could reallocate funding within the Scottish Government’s own budget to improve support for business.”

But Ms Forbes rebutted Mr Cameron’s suggestion.

She said: “If Donald Cameron can identify where he believes I should remove money from in terms of either businesses that have received money here that haven’t received it in the rest of the UK - or where and how I should divert that funding from frontline services, I would be intrigued in the answer.

“We have exceeded the funding consequential for business, we have topped that up with our own support. But we have got to cater for the unique challenges in the Scottish economy. 

READ MORE: Coronavirus: Scottish Government's partial business support u-turn 'still falls short'

She added: “That funding is going further and helping more businesses. It does mean that with the limited resources that we have, we have tried to ensure that the support goes as far as possible.

“This week’s announcement in terms of providing funding for multiple properties as a result of me listening to concerns that were raised, we are also trying to ensure that businesses that are falling through the cracks of the UK Government’s scheme are also getting help.

“At a time of extreme difficulty, I’m acutely aware of the pressure on every sector, every industry and every part  of the economy. It’s important that this funding helps as many bus as possible.

READ MORE: Hospitality trade slams ‘unfair’ exclusion from Covid-19 grants

"I think this week’s announcement proves that the Scottish scheme  is one of the most generous in the UK.”

Lib Dem MSP, Liam McArthur, called on Ms Forbes to offer more support to those who work from home and are not registered for business rates - who “are falling through the cracks”.

He added: “What reassurances can she offer that businesses in this group will not be left high and dry?”

Ms Forbes added: “Our support goes beyond the grant  and the non-domestic rates relief.

“When it comes to those that are falling through the cracks, although we have lobbied the UK Government hard to expand support for the self-employed, this week we announced a further £100 million fund to support self employed people and viable micro of SME businesses that hadn’t been getting the support that need, to date.

“That  fund will be channelled through local authorities and our  enterprise agencies to target in particular newly self employed people and businesses that are ineligible for other forms of support. I have the tourism industry particularly in mind with that fund. Applications for that fund will open by the end of the month.”