Ishabel Bremner
Challenges: Local Authority (LA) Perspective (respond stage):
• Local government services and key workers have been integral to the frontline support to communities throughout Scotland from the outset of lockdown.
Many LA Economic Development teams have deployed staff into supporting the dissemination of the ratepayer business support grants.
As of 28th, April 2020 a total of 76,238 business support grant applications were processed by LAs, of which, 45,387 grants were awarded, a total grant value of over £526m (£526,260,000).
£34m Self Employment Hardship Fund (launched 30th April) to be delivered by LAs; in many areas by Economic Development services. This fund provides a one-off hardship payment of £2,000 to newly self-employed people (on or post 6th April 2019) who are not eligible for the other support schemes (including the HMRC self-employment scheme).
Significant negative impact to the Scottish economy, particularly for key sectors such as hospitality, tourism, food & drink, construction.
Economic impact is anticipated to be more severe in rural and island communities:
o Workers living in rural local authorities are twice as likely to be self- employed than in urban areas.
o They are 2-3 times more likely to work at home and a higher proportion of people have more than one job.
o SMEs accounted for around 70% of total rural employment, versus 47% in urban areas, for VAT registered businesses. Social enterprises/third sector also play a key role in rural economies.
o The largest SME employers in the rural sector tend to be in the tourism, hospitality and food & drink (inc. agriculture and aquaculture) sectors.
o There is also a seasonal component to some rural activities, and income generated in spring/summer maintains businesses over the annual cycle.
Opportunities: Local Authority (LA) Perspective:
Strong sense of community and community resilience going forward – we are in this together.
Key focus on inter-agency and community collaboration and partnership working for economic recovery – pulling of resources and expertise.
Maintain the greater use of digital connectivity (inc. mobile) platforms going forward e.g. more working from home, more national meetings conducted digitally, etc.
• Correlation between greater digital connectivity usage and positive impacts on discrete climate change targets such as CO2 emissions.

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