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Daily Record
Daily Record
Politics
Chris McCall

Unions slam Scottish Government economic recovery plan for 'falling way short'

Unions have claimed the Scottish Government's latest economic recovery plan falls "way short" of what is needed to support vulnerable businesses.

The SNP's new economy secretary Kate Forbes announced up to £12 million of funding for companies in Level 2 areas - including those in the hospitality, events, weddings and soft play sectors.

Taxi drivers and operators across Scotland will receive up to an additional £62 million of funding, bringing total support for drivers during the pandemic to more than £90 million.

Forbes told MSPs: "All drivers who previously received a £1,500 grant under the taxi and private hire support fund will receive a second payment this month. Taxi operators will then be contacted by their local authorities and will receive tiered grants, taking their total support up to £10,000.

"Following discussions with sector representatives, a small number of the largest operators will be paid up to £15,000."

But Unite Scotland said the vast majority of operators would receive significantly less than £10,000, with firms operating a single or 2-9 cars are set to receive only £1,000 or £3,000 respectively.

Unite has repeatedly called on the Scottish Government to deliver a £10,000 grant for each taxi operator irrespective of size, which is the equivalent support being given to all other small business owners.

Pat Rafferty, Unite Scottish Secretary, said: “Support is desperately needed and welcome but this is a sector that has been failed once again.

"We have regularly brought this to the attention of ministers and indeed the First Minister regarding the lack of support. The pleas of many within the trade have been ignored.”

“This announcement falls way short for the vast majority of operators who manage less than ten cabs, and who continue to face high fixed costs at a time when the trade remains in crisis."

Scotland's economy grew by 2.1% in March but remains 5.4% below the level it was at in February 2020 in the month before the first national lockdown was imposed.

Several sectors are particularly struggling, with output in the food and accommodation industry still down 70% on its pre-pandemic level.

In her first speech since taking on a beefed-up role as economy and finance secretary, Forbes thanked businesses and workers for their "sacrifices" during months of repeated lockdowns over the last 12 months.

"The essential restrictions have saved lives but not without cost," she said.

"The government owes a debt of gratitude to everyone who put the needs of the country before their own financial or business interests."

Forbes also announced a new 10-year National Strategy for Economic Transformation to set out how business and government will work together to create the best conditions for entrepreneurs to flourish. A National Challenge Competition, backed by £50 million of funding, will support projects with the greatest economic potential.

The SNP minister said: "We must unashamedly use the experience, expertise and ingenuity of businesses, trade unions and workforces to deliver greater, greener and fairer prosperity.

"We want to work in partnership with the entrepreneurs and thinkers, the job creators and the hard workers."

STUC General Secretary Roz Foyer said: “The plan as laid out by the cabinet secretary was rich with references to entrepreneurs but had little to say about the real wealth creators – the workers.

"Now is the time for government and council led public works programmes to create jobs in sustainable house building, green retrofit, transport and the renewables supply chain.

“We welcome references to Fair Work but far more can be done using government procurement to make that a reality.

"Economic recovery, particularly local recovery, will be driven by money in workers’ pockets and that means commitments to real terms pay rises and an end to poverty pay.

“The STUC has consistently argued that we need a People’s Recovery which takes us forward to an economy based on good sustainable jobs not backwards to the inequalities that existed pre-crisis. We will continue to work positively with Government to deliver on this, but greater ambition will be required.”

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