North-east businesses have the “right to know” where the Scottish Government is spending a £2.2 billion coronavirus emergency fund, a local MSP has said.
Businesses in Scotland are to benefit from a share of a £330bn UK Government pot which was opened to support firms and people affected by Covid-19.
Measures include loans and guarantees for businesses, access to the Job Retention Scheme and support for the self-employed.
But Aberdeenshire West MSP Alexander Burnett said there are searching questions to be asked of the SNP government over where its share is being spent and why its small business support scheme means many businesses are disadvantaged, compared to the rest of the UK.
Mr Burnett, the Scottish Conservative shadow finance minister, has written to SNP cabinet secretary Kate Forbes, as he believes north-east businesses are “already suffering” due to hurdles in the support scheme.
In the letter he said: “The UK Treasury has given Scotland billions of pounds to help in the fight against coronavirus. That fast action was needed because businesses are already closing or laying off staff in my constituency of Aberdeenshire West.
“People are already suffering. The wider north-east economy is hugely impacted by any decisions in the oil and gas industry, and I am sure you will have seen news of firms laying off workers.
“That will have massive consequences for all kinds of businesses in the north-east and we should be supporting them in the same way as any other part of the UK.”
Mr Burnett added that in England, chain businesses including restaurants, pubs, shops and hotels can receive grants of up to £25,000 per property, with a six-property ceiling of £150,000.
But the Scottish Government has said the grants are only to be made per business, meaning those in the same position will receive just £25,000.
He added: “So far no details have been released about where all this unspent cash is.”
Mr Burnett asked that Kate Forbes detail where any unspent cash is and why the small business support scheme means many businesses are at a disadvantage compared to the rest of the UK.
She said: “We have been very clear that every penny we receive from the UK Government for this purpose is going directly to support businesses.
“However the funding allocated by the UK Government is based on population share, rather than recognising what is required in Scotland, particularly given the larger number of small businesses in Scotland, and that is why we need more resources to be able to provide additional support.
“This includes targeted support for small businesses, and medium-sized businesses in the retail, hospitality and leisure sector, which are liable for non-domestic rates, to maximise the number of businesses we can support.
“Because there are more businesses eligible for the £10,000 grant in Scotland due to the more generous Small Business Bonus Scheme, and recognising the other business support available to cover wages, we have decided to limit the £10,000 and £25,000 grants to one per business.
“The decision to prioritise support in this way will ensure more efficient use of limited resources.
“This has allowed us to offer support to other sectors, including aviation and fishing, which are not receiving support elsewhere in the UK.”