Government support vital but difficult says leading Highlands accountancy
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Large numbers of business owners across the region have accessed the government’s support schemes in a bid to keep their businesses afloat, says a leading Highland accountancy firm.
The government’s Coronavirus Job Retention Scheme along with loans and grants have been available to small businesses to help them pay their staff and bills during the pandemic.
Goldwells has said retailers, tourist organisations, manufacturers and service companies have accessed the support available, although it has been difficult for some to establish eligibility for schemes and navigate the online portals.
The firm's Lorna Drummond said: “Business owners have been incredibly busy over the past few months, firstly with working out how to close their businesses safely and then trying to establish what financial support was available to them.
“It can be complicated as every business is different and there are rules and caveats for many of the schemes. Different support is available depending on the size of the organisation, its income history and sector.
"Initially, the furlough scheme was complicated to set up, but now that firms can simply apply each month it is much easier for everyone.
“Every business wants to get as much support as they can.
"Of course, they want to make sure their staff are paid, and also keep the business going to ensure there are jobs to come back to.
"For most businesses, cashflow is vital, which is where we have been able to help business owners get as much support as they can.”
She added: "One thing that is sure is that business owners in the Highlands are determined to seek support to make sure they are financially stable, and able to look towards reopening in a very different world."
Goldwells has offices across the north including Grantown, Kingussie, Inverness, Tain, and Nairn.
Toncam Flooring & Interiors based on the High Street in Kingussie was faced with working out the best way to keep his business going.
Director Glen Tonkin said: "We were forced to close on the March 23. Along with losing the retail side, the floor care and restoration services we offer also had to come to a stop as we were classed as non-essential.
"A large part of our business is made up of commercial clients in the hospitality and tourism sector, but also the domestic market had to close, so income ceased overnight.
“After taking advice from Goldwells about our cash flow and financial projections, we decided to furlough five members of staff.
"We were advised to apply for the Government’s £10,000 grant which we received and we have applied for other grants to help keep both of our businesses afloat.
“The help from the UK and Scottish Governments have been important as it would have been difficult to see a future for our businesses without it.
"The furlough scheme pays for some of our staff costs but we still have rent and other costs associated with running the businesses so the grants have been essential.”
Stephen Queen, owner of Chaplin’s café in Grantown, had to temporarily close his business due to the coronavirus pandemic and investigated the various business support schemes which were gradually announced in March and April.
Mr Queen said: “Chaplin’s café closed on March 21 and we tried some takeaway but it wasn’t possible to stay open due to the low level of demand in the area.
"As I have a 90-year-old mother who needs to socially isolate I decided to close the business and look after her, but at the same time I had to keep the business afloat.
“I have run the café for 11 years and Grantown is a great place to do business. We have a steady trade of local, loyal customers and in spring and summer there are lots of tourism events and general tourism passing trade which keeps us really busy.
"The Grantown Show is great for business but we will sorely miss the summer events which usually bring us so much business.
"The Harley Davidson event, which has been passing through the Highlands for 23 years brings over 2,000 bikers to the area, has been cancelled which is a great loss to us.
“When we realised we had to close, we expected it to be for a few weeks. Initially, from a business perspective, it was very confusing.
"We had no idea how long we would be closed for but I wanted to do everything I could to protect my staff and the business. I know how to cook and run a café but I don’t know about government financial schemes.
“The portals can be a nightmare and it is a very serious and important matter, so thankfully the team at Goldwells in Kingussie was able to help me find my way around the systems.
"There is a wide range of support available but it is not always easy to see what your business is and isn’t eligible for.
“While I was worrying about my family, my staff and my business, it was important to get good professional advice to help us make sure we are there for the future.
“We are now investing in PPE and signage and working out how we can still provide our quality service to local people but in a safe way. It will be different, but I know our loyal customers will support us and Chaplin’s will be here for a long time.”
The UK Government's furlough scheme in effect closed to new applicants yesterday.
Employees must have been furloughed for at least the minimum period of three consecutive weeks when the government ushers in changes to the scheme on July 1. The only exception is parents who are returning from maternity and paternity leave after this deadline.
