Chamber and committees

The Coronavirus Job Retention Scheme, which includes the furlough measures, is reserved to the UK government (HMRC) under employment law. The UK Government’s guidance makes clear that anyone who has been furloughed cannot contribute to the work of their employing organisation. The Scottish Government is not permitted to change the terms of the scheme.

Workers should only be furloughed when they are not required to work as the scheme is intended to retain jobs through the period of social distancing so they are available in the recovery.

The Scheme does permit a furloughed employee to take part in volunteer work so long as it does not provide services or generate income for their employer or any organisation linked or associated to that employer.

The Scottish Government’s “Scotland Cares” volunteer campaign has seen a huge response with the most recent figures showing over 74,500 volunteer sign ups.

Local authorities have been asked to put in place critical childcare provision for keyworkers and vulnerable families, and are working at pace to develop local approaches that reflect local circumstances. We understand that local authorities are taking a variety of approaches to keyworker provision and we are working closely with our local government partners to understand these models.

With regard to places in private providers that cannot be accessed due to closures, it is up to individual businesses to set their own charging policies. The Scottish Government is, however, encouraging all childcare providers to be reasonable and balanced in their dealings with parents, recognising the incredibly challenging situation in which families find themselves.

We understand that this is an anxious and worrying time for business owners in the childcare sector. It is of vital importance to the Scottish Government that our childcare sector survive and thrives after the pandemic. Childcare will play a critical role in Scotland’s economic recovery, and we are determined to achieve our ambition of improving children’s outcomes through expanded provision of high quality early learning and childcare.

The UK and Scottish Governments have therefore developed a range of business support measures available to the childcare sector. The Scottish Government and local authorities have also guaranteed funding for statutory places throughout the period of closures. We would encourage childcare providers to look at our dedicated gov.scot advice pages for childcare providers to ensure they are making full use of the business and financial support available at this challenging time.

Local authorities have been asked to put in place critical childcare provision for keyworkers and vulnerable families, and are working at pace to develop local approaches that reflect local circumstances. We understand that local authorities are taking a variety of approaches to keyworker provision and we are working closely with our local government partners to understand these models.

It is up to individual businesses to set their own charging policies. The Scottish Government is, however, encouraging all childcare providers to be reasonable and balanced in their dealings with parents, recognising the incredibly challenging situation in which families find themselves.

We understand that this is an anxious and worrying time for business owners in the childcare sector. It is of vital importance to the Scottish Government that our childcare sector survive and thrives after the pandemic. Childcare will play a critical role in Scotland’s economic recovery, and we are determined to achieve our ambition of improving children’s outcomes through expanded provision of high quality early learning and childcare.

The UK and Scottish Governments have therefore developed a range of business support measures available to the childcare sector. The Scottish Government and local authorities have also guaranteed funding for statutory places throughout the period of closures. We would encourage childcare providers to look at our dedicated gov.scot advice pages for childcare providers to ensure they are making full use of the business and financial support available at this challenging time.

The tech sector in Scotland is crucial, particularly in the recovery phase after the COVID-19 crisis. We recognise this is an extremely difficult time for tech firms and are engaging with Scottish Enterprise to establish what specific challenges the sector is facing, and the actions we can take to assist the sector through the current crisis and prepare for the future.

We continue to respond to the concerns of businesses that is why we are working alongside the UK Government to put in place unprecedented support for employers and employees. Scottish Ministers are engaged with the UK Government regularly, through Treasury and Department for Business, Energy and Industrial Strategy (BEIS) discussions, in order to ensure that schemes and sectoral responses led at a UK level reflect the distinctive needs of Scotland and the other devolved administrations.

On 15 April, the Scottish Government announced £220 million of further grants were to be made available for businesses, including the recently self-employed, to help them deal with the ongoing impact of the coronavirus (COVID-19) outbreak. This new package of measures includes £100 million to protect self-employed people and viable micro and SME businesses in distress due to COVID-19. This fund will be channelled through local authorities and enterprise agencies and targeted at businesses that are key to Scotland's future.

The UK Government has announced a £1.25 billon package to protect businesses driving innovation in the UK. The package includes the £500 million Future Fund for high growth companies impacted by the coronavirus crisis, made up from Government and private sector funds. SMEs focusing on research and development will also benefit from £750 million of grants and loans. The £750m of targeted support for the most R&D intensive small and medium size firms will be available through the national innovation agency Innovate UK’s grants and loan scheme.

We are looking at the terms of the UK Government's Future Fund to identify any gaps in how that fund will support Scotland's tech community.

The main source of business information and support can be accessed through the Scottish Government website at https://findbusinesssupport.gov.scot/coronavirus-advice/ . This is being regularly updated with advice and guidance and offers a single entry point for the range of support available to support business.

The Scottish Government has no plans to lower thresholds for the grants schemes because in so doing businesses currently eligible for a £10,000 grant would become ineligible. The threshold reflects the Small Business Bonus Scheme in Scotland which is the most generous scheme of its type in the UK. The Small Business Grant is available for businesses with rateable values of up to £18,000, which are in receipt of Small Business Bonus Scheme (SBBS), or eligible for SBBS but in receipt of a number of other reliefs. Businesses in the Retail, Hospitality, and Leisure (RHL) sectors with rateable values between £18,001 and £51,000 may be eligible for the RHL Grant Scheme.

This means that a property which is not in the retail, hospitality or leisure sectors with a rateable value between £15,000 and £18,000 would receive nothing in England, but is eligible for a Small Business Grant in Scotland.

The Scottish Government has been clear that the single most important action we can all take, in fighting coronavirus, is to stay at home in order to protect the NHS and save lives. Where a function can be carried out from home then that is where is should be done.

Businesses involved in computer services and repairs are expected to be responsible and to adhere to the guidance as any other business is. If a business considers that what it is doing is essential, in support of the effort against the COVID-19 or in supporting critical national infrastructure, and that activity cannot be carried out at home then we must expect that any such business acts in accordance with regulations and ensures that social distancing is thoroughly applied.

The Coronavirus Job Retention Scheme, which includes the furlough measures, is reserved to the UK government (HMRC) under employment law. Scottish Government therefore cannot provide support for reduced staff hours as it is a UK scheme. The scheme itself does not permit furloughed workers to carry out work for their employer. The employer cannot ask the employee to do any work that makes money for the employer or any organisation linked or associated with the employer. This also includes the provision of services. Staff who are working reduced hours are not eligible for the scheme. The Scottish Government has called on the UK Government to consider more flexibility in the scheme.

While there is no specific veterinary support scheme, there is a range of support measures that are in place for all non-domestic properties, including veterinary practices. They will be eligible for the universal 1.6% rates relief. Where veterinary businesses are in receipt of Small Business Bonus Scheme relief and/or Rural Relief, they will also be eligible for a one-off £10,000 grant. A new package of measures announced by the Scottish Government on 15th April includes £120 million to extend the Small Business Grant scheme to ensure that, in addition to a 100% grant on the first property, small business rate payers will be eligible to a 75% grant on all subsequent properties.

A one-off grant of £25,000 is available for retail, hospitality and leisure businesses with a rateable value between £18,001 and up to including £51,000. Veterinary practices are advised to contact their respective local council directly to determine their eligibility for these grants.

The Scottish Government recognises the vital importance of physical activity for both our physical and mental health during this pandemic. We have been clear with our messaging that exercise is permitted if people follow the guidelines, observe social distancing, exercise with people within their household and wash their hands.

We have also advised that people, where possible, exercise in their gardens and in their home in addition to their once a day permitted outdoor exercise.

In order to ensure consistent messaging, we are providing information to the public using TV, radio and social media channels.

The Cabinet Secretary for Finance announced on 15 April that funding of around £220 million of further grants are being made available for businesses - including the recently self-employed.

This new package of measures includes £120 million to extend the Small Business Grant scheme and a further £100 million fund is also being made available to protect self-employed people and viable micro and SME businesses in financial difficulty due to COVID-19.

£34 million of this funding is dedicated to a Newly Self-Employed Hardship Fund which will offer grants of £2,000 to the newly self-employed facing hardship.

This 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.

Updates and information on this funding and other sources of business information and support is regularly updated and can be accessed through the Scottish Enterprise website at: https://findbusinesssupport.gov.scot/coronavirus-advice/.