Mixed reaction in the north for Chancellor's budget measures
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THE measures announced in this week's budget received a mixed reaction in the far north with the extension of the furlough scheme being welcomed but the reduction in VAT for the hospitality industry described as "hugely disappointing."
Trudy Morris, the chief executive of the Caithness Chamber of Commerce, said:"The news that the furlough scheme is being extended until September will be welcomed by many businesses, who would otherwise be facing a cliff edge come the end of April. While we understand the need to begin increasing the business contribution towards the scheme, this must come hand-in-hand with the reopening of the economy.
"Despite this continued support and the widening of the Self-Employment Income Support Scheme, there remains a concerning amount of businesses who have fallen through the gaps in support available. We need both UK and Scottish Governments to work to recognise and address these gaps to ensure that these businesses are able to survive the coming months."
"The announcement regarding the temporary VAT reduction in relation to the hospitality and tourism sector is hugely disappointing. The sector had been calling for decisive action from the Chancellor to help the industry recover. The extension until September 2021 of the five per cent rate and then an increase to 12.5 per cent to March 2022 does not go far enough considering that businesses have had little if any opportunity to benefit from the present reduction. With the start of the tourism season in sight and no clarity on when restrictions might be lifted, businesses in these sectors will require continued support throughout this season and into the next.
Ms Morris added: "A significant amount of consequential funding has been made available to the Scottish Government as a result of today’s announcements, and we call on Scottish Government to act at speed to get much-needed cash out to businesses. We continue to have concerns about the speed of the rollout of some promised funding schemes.
"The promise of new loan, asset and invoice finance is welcome, but we have been concerned at the inability of some businesses to access other Government-backed finance options throughout the pandemic. UK Government must work closely with the banking sector to ensure that these new support mechanisms are truly accessible to all businesses."
Jamie Stone, theLiberal Democrat MP for Caithness Sutherland and easter Ross, also welcomed the cut in VAT for the hospitality sector but said more needs to be done.
"We need a tailored tourism support package - one that recognises the financial free fall these businesses suffered during the height of the season. A VAT cut helps, but it is not enough," he stated.
"While the budget made a concession for the 151,000 newly self employed, the budget continues to exclude millions from financial support. Quite simply, the Chancellor made a political calculation that some people are less worthwhile than others. These people range include beauticians, taxi drivers, freelancing creatives, and tech experts. They form the backbone of the British economy and are to be found in every Far North community. I will keep on fighting for them."
Mr Stone added: "The Chancellor 's silence on supporting live music and performance speaks volumes: he cares little for the cultural rejuvenation of our country and the livelihoods of those that organise events."
David Richardson, Highlands and Islands development manager for the Federation of Small Businesses,
welcomed some of the measures in the budget but said Chancellor should have taken "a longer term view."
He added: "We must now hope that the Scottish Government will optimise its package of rates and grant support measures, ensuring that the focus is on helping the smallest businesses hit hardest rather than the biggest businesses who’ve avoided the worst of the restrictions.The path ahead remains rocky and our small business community is going to need all the support that it can get."
