Additional funding given to local councils in England should extend north of the border, Finance Secretary Kate Forbes has said.
Deals are being struck between the UK Government and local authorities in England to support businesses and individuals affected by coronavirus restrictions.
Forbes said providing that assistance in other parts of the UK creates a “legitimate expectation that enhanced support will be available to businesses in Scotland” – but she claimed that expectation cannot be met due to financial constraints.
In a letter to Chancellor Rishi Sunak, Forbes called for “urgent clarity” on any extra funding to be made available to Scotland as a result of the packages offered to the Liverpool and Manchester areas.
Forbes wrote: “This additional expenditure should attract consequentials above what has already been guaranteed.
“These decisions will create a legitimate expectation that enhanced support will be available to businesses in Scotland – expectations that cannot be met due to the limited funding available to the Scottish Government.
“I would be grateful if you could provide urgent clarity on further funding this additional spending by the UK Government will provide to the Scottish Government to help inform our forthcoming decisions on business support and to ensure that Scottish businesses are not disadvantaged directly as a result of UK Government decisions.”
Forbes also called on the Chancellor to considering changes to the furlough scheme, including an extension so it can be used for the supply chains of businesses hit by local lockdowns and restrictions which force their closure.
Her call comes after First Minister Nicola Sturgeon said “urgent discussions” should be held between the devolved administrations and the UK Government, with the Scottish Government set to publish a tiered framework for Covid-19 restrictions on Friday.
Sturgeon told her daily coronavirus briefing that the financial support she will outline alongside the new tiered system is the maximum that can be offered from Scottish coffers, but the minimum required to protect businesses and individuals.
She said: “In common with other devolved administrations and, indeed, many councils now across England, we will continue to pursue urgent discussions with the Treasury about the provision of adequate support and funding to support businesses and individuals through the kind of restrictions that are likely to be necessary in the period ahead.”
A UK Treasury spokesman said: “Since the beginning of the pandemic the UK Government has provided billions of pounds of support both to the Scottish Government and directly to Scottish businesses and workers.
“As recently as October 9 we gave the Scottish Government an additional £700m to fund their efforts to respond to coronavirus, on top of £6.5bn they were given in July.
“And Scottish firms and employees continue to benefit from UK Government initiatives to protect jobs and businesses.
“The furlough scheme will continue to operate until the end of October.
“After that businesses facing reduced demand can claim under the Job Support Scheme to ensure their employees can earn a minimum of 77% of their normal wages.”
