Financial support for B&Bs in Highlands that fell between the cracks

A new Scottish Government fund has been set up to help B&Bs across the Highlands who had missed out on previous rounds of emergency funding.

Some B&Bs did not qualify for assistance because they did not pay business rates and also could not apply to the Hardship Scheme because they did not have a business bank account.

The new fund was announced this afternoon by Fiona Hyslop MSP, Cabinet Secretary for the Economy, during a debate in the Scottish Parliament chamber.

Badenoch MSP Kate Forbes said she hoped this would help some B&B operators who had previously ‘fallen between the cracks’.

The MSP for Skye, Lochaber and Badenoch said: “I am aware that some B&Bs had missed out on previous funding because they didn’t have a business bank account, and I have been working hard behind the scenes to help find a solution.

“As of 15 June, such B&Bs can apply to a scheme administered by local authorities for a lump sum of £3000 which was the default amount through the Hardship Scheme.

"This is specifically for B&B businesses that don’t have a business bank account.

“I realise that many people are facing significant difficulties as we look ahead to a challenging tourist season, and also that this funding will not replace the lost income.

"I do hope, however, that it offers some help.”

Highlands Scotland Conservative Edward Mountain welcomed what he described as a U-turn by the Scottish Government.

Mr Mountain, who launched the Help Our B&Bs campaign, said hundreds of B&Bs were initially left without support from the £20m Creative, Tourism and Hospitality Enterprise Hardship Fund.

The Scottish Government had made having a business bank account a key part of the criteria for applications.

He said: “At long last there is some business sense from the Scottish Government. I am delighted that this U-turn will mean hundreds of B&Bs will now receive the lifeline support they so desperately need.

"Since I began this campaign I have been contacted by B&Bs in Glencoe, Strathspey, Skye, Aberdeenshire and Dumfries – all have felt let down and abandoned by this Scottish Government.

"Businesses who operate without business bank accounts should never have been ineligible for funding in the first place.

"If the Cabinet Secretary for Finance had been more aware of the reality of how small businesses operate, then this fiasco could have been prevented from the beginning.

"B&Bs have been made to wait too long for funding and I trust the Scottish Government will now make the application process as smooth as possible so funding can be delivered quickly.”

David Richardson, the FSB’s Highlands & Islands Development Manager, said: “I have been approached by a range of long-established and well known B&B operators during this crisis, all very concerned that they were missing out on Scottish Government support because they did not have business bank accounts.

"There is absolutely no reason why they should, and it seemed very unfair that they were being refused funding on a technicality.

“FSB Scotland is campaigning hard to ensure that cracks in the support mechanism for smaller business are filled in, and we are sure that right across the Highlands, many, many B&B operators will be drawing a huge sigh of relief at this news.”

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