Calls to use unspent Covid support funds to help businesses with energy bills

Unspent Covid support funds should be used to help hospitality businesses struggling with rising energy bills and supply costs, UKHospitality Scotland has said.

Yesterday's (16 June) report by Audit Scotland found that the Scottish government has only reported spending £11.8b of the £15.5b allocated to its coronavirus response in 2020/21 and 2021/22.

Leon Thompson, executive director for UKHospitality Scotland, said: "The report from the Auditor General highlights a considerable underspend in the allocation of Covid support funds. The funds spent by the Scottish Government provided a lifeline to businesses, but the challenges for hospitality continue.

"With increased energy bills, of up to and in some instances exceeding 200 per cent, rising supply costs and customers already scaling back on discretionary spend, now is the time to consider how it can allocate this underspend to support businesses."

He added this could be done by extending business rates relief for the remainder of the financial year and supporting businesses to manage their uncapped energy bills.

"Our sector remains in a fragile state. If the Scottish Government has unspent business support funds then they must be used to help businesses through these new challenges," said Thompson.

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