Scrap all business rates and put in place emergency loan funding – that’s the call to action from the Scottish Tourism Alliance

The Scottish Tourism Alliance has revealed that in communications with the Scottish government, it has called for the scrapping of all business rates/local taxes for all travel and tourism businesses as well as a full range of business support for the next 12 months.

This includes:

  • Deferring all corporation tax, VAT and PAYE for 12 months
  • Significant emergency loan funding for all affected businesses (as Germany)
  • Paying % of the lost wages of employees on reduced time or temporary layoffs (as Germany and Denmark are doing)
  • Providing full benefits and support to all staff who are temporarily made redundant immediately.
  • Suspending the requirement for tour operators to refund customers who cannot travel (this affects the entire supply chain).
  • Requiring the banks and landlords to offer all affected employees and businesses repayment holidays of up to 12 months on mortgages, loans, rent etc. – maybe to ease with Scot Govt guarantee.
  • Use the Scottish Investment Bank to support now.
  • Push the banks hard to be supportive of hospitality businesses experiencing unexpected trading difficulties and provide Scottish Government guarantee.
  • Commercial landlords must be encouraged to defer rent payments with Government guarantees as necessary.
  • Establish a SG underwritten business support fund to provide emergency cash flow via zero-interest loans and non-repayable grants.
  • Although a reserved matter, Scottish Government to press UKG for reduction in tourism and hospitality VAT to (5%) to stimulate demand and support recovery as well as others.

Marc Crothall, Chief Executive of The STA comments, “There is now much greater acknowledgement and recognition by the Cabinet Secretary and members of Scottish Government of the severity and pace of the impacts that are currently being and soon to be even greater felt by all across the industry. We have highlighted and shared what is happening in Ireland and elsewhere in Europe, pointing towards the types and levels of support being provided by governments of those destinations.

“There is now much greater acknowledgement and recognition by the Cabinet Secretary and members of Scottish Government of the severity and pace of the impacts that are currently being and soon to be even greater felt by all across the industry.”

He also revealed that the STA have a commitment of a call three times a week with the Cabinet Secretary, which will be more frequent if necessary.  Mr Ewing has stressed the importance of industry continuing to feed back through the channels of the STA and Visit Scotland of the impacts being felt on a daily basis.

Says Crothall, “We have also asked for more regular announcements by Scottish Government on what actions are being committed to quickly so to provide comfort and assurance that every possible thing is being done.”

Category: Editors' Picks, News
Tags: coronavirus, Marc Crothall, Scottish Government, Scottish Tourism Alliance