We knew 2021 would bring with it new restrictions and a continued strain on businesses across the country, but we’re now amidst a lockdown in Scotland as strict as March 2020 – and this time the support pot is running dry.
Rewind to January last year and many of us didn’t even know the meaning of the word furlough, however the survival of some businesses in 2021 now depend on it alongside grants and support loans.
Chancellor Rishi Sunak has announced more than £4.5 billion in new lockdown grants to support businesses and help protect jobs, £375 million of which was allocated to Scotland – but he’s faced major criticism from Scotland’s Finance Secretary Kate Forbes who has said this is not new cash.
Within his announcement of so-called fresh funding, businesses in the retail, hospitality and leisure sectors can apply for a one-off grant worth up to £9,000. The funding was initially announced as an addition to the latest £1.1 billion discretionary grant funding for UK local authorities and local restriction support grants, which could offer up to £3,000 a month to eligible businesses.
The commentary from Kate Forbes has alluded to the understanding that the £375 million would form part of the money pot which had already been announced by Westminster – estimated at a total of £8.6 billion for Scotland in this financial year. So it seems businesses are no better off now than they were at the start of January yet they face stricter restrictions.
Upset stretched to Wales too as the Welsh Government’s Finance Minister, Rebecca Evans also believed this ‘new’ funding was already accounted for in a previous announcement. So much for a United Kingdom.
With every new announcement of funding there always seems to be someone or some sector that falls through the cracks. The devil is in the detail and what’s important is that the funding actually reaches the bank accounts of the business in need, as soon as possible. The promise of money won’t actually pay the bills.
The new lockdown grants are said to be provided on a per-property basis and are designed to help support businesses through the upcoming months leading to spring. It is estimated that this cash will benefit 600,000 individual business properties across all of the UK which are worth £4 billion to the UK economy.
The sad reality is that we don’t have a bottomless pit of money to throw at the problem and it’s no secret we will all likely be paying it back as a nation eventually.
Thankfully the latest announcement is in regards to a grant rather than a loan so that in itself will be reassuring for business owners, but the problem remains that these new batches of grants only aid support for the short term, extending the furlough scheme gives peace of mind for now – eventually though it will run out and then what will we all do?
The fear is that when the Job Retention Scheme ends in April, business will face a ‘cliff edge’ as support suddenly stops and individual business owners are not in a position to plug the gaps themselves.
As we’ve witnessed this virus isn’t predictable, especially now with a new strain, and the government will need to be agile in its response to successfully represent and support businesses. Lasting economic damage is inevitable, but with the right response, we can minimise the damage.
With all of their flaws, you can’t deny that introducing these loans schemes and creating furlough has been a lifeline for businesses, but as business owners we need to take some responsibility.
If you’re in a position that the livelihood of your business isn’t reliant on the scheme then you shouldn’t be claiming that money and we can help aid the recovery of our economy.
Of course in a national lockdown and putting a stop to trading for some sectors, it means our hands are tied, but many businesses have been able to pivot and adapt their offerings and it would be unethical if they were profiting through government schemes.
Throughout 2020 there was a great surge in strength from local communities and business networks, showing that it doesn’t need to be every man for himself, and we should keep this sense of community as we make steps on the road to recovery.
If the past twelve months has taught us anything, it’s just how reliant we are when it comes to technology.
From the endless stream of Zoom calls with family, friends and work colleagues or playing around with the latest gadgets and gizmos stockpiled from the Christmas period – the world is becoming increasingly more and more digital every day.
The career opportunities that have grown from the ‘new normal’ we have become accustomed to have been revolutionary for certain industries across the nation.
One sector that has enjoyed a real boom is cybersecurity, with many of those involved in the industry having to put in overtime to ensure workplaces can safely integrate their average day-to-day business to the world of online, at home working.
This past week has seen even more support for the cybersecurity industry, as the National Cyber Security Centre (NCSC) announced that they have created a series of new courses, tailor made to develop budding young talent in Scotland and help further explore their passion for technology.
The courses, delivered in partnership with QA and the educational charity The Smallpiece Trust, are designed for youngsters aged 11 and 14, and will be held throughout February via virtual classrooms.
Each course will aim to inspire a new generation of Scots in the diverse range of career paths available in computing and cybersecurity, whilst also providing new skills, such as digital forensics, in an interactive and entertaining manner.
As uncertainty continues regarding lockdowns and the impact of the now-in-effect Brexit deal, it’s vital to ensure that Scotland remains safe online.
It’s fantastic to hear that so much effort is not only going into the development of software and hardware that we need to protect ourselves, but also the future talent and roles this sector will require to truly optimise our security moving forward in the digital age.
It Made Me Laugh
With temperatures dropping to below zero and the extreme winter weather set to continue, it was heart-warming this past week to see so many Scots enjoying the chilly outdoors.
I’ve spotted plenty of stories regarding fantastic displays of ice skating on frozen ponds in the South Side of Glasgow, but the one that truly made me laugh is the dedicated band of parents who wouldn’t let the cold get in the way of a sweet, iced treat.
I tip my hat to the many park goers who braved the arctic weather to queue at an ice cream van for a Mr Whippy.
However mad it may seem, all the pictures I’ve seen are perfectly socially distant and it’s great to see locals supporting small ice cream vendors, no matter the temperature.
It Made Me Weep
Many of us now know the famous saying ‘a pet is for life, not just for Christmas’, but it was worrying to see that a Scottish animal welfare charity is concerned about what will happen outwith the festive season.
Despite a reduction in abandoned animals in their care over the past twelve months, the Scottish Society for the Prevention of Cruelty to Animals (SSPCA) is warning that an end to the furlough scheme may see household pets given away, with people either returning to full time work or not being able to afford the additional costs.
It’s a challenging time for a lot of people, but budgeting for all family members, including pets, is something I’d urge everyone to try and do over the next few months.
