Scottish Conservatives call for cancellation compensation fund to protect jobs

The SNP Government must bring in a cancellation compensation fund to prevent job losses caused by changes to Covid guidance, the Scottish Conservatives have said.

On Friday, following advice from Public Health Scotland, Nicola Sturgeon urged people to avoid Christmas parties.

Businesses have been hit by a wave of cancellations but the Scottish Government has not said if compensation will be provided.

The Scottish Conservatives have said the Scottish Government has the funding right now to establish a short-term compensation fund.

The Scottish Hospitality Group have estimated businesses may miss out on approximately £10 million of turnover.

Scottish Conservative Shadow Cabinet Secretary for Finance, Liz Smith MSP, said: “Scottish jobs will be at risk if small businesses lose out on thousands of pounds of vital revenue that they were expecting to receive.

"This latest setback in the Covid situation is a bitter blow to businesses at one of their busiest times of the year. They need more support from the SNP, who so far seem to be trying to pass the buck. 

"Unlike small businesses, the SNP Government does not have a cash flow issue. There is money available right now in their accounts to establish an emergency cancellation compensation fund to protect jobs.

"Instead of another constitutional showdown over funding, we need to see the Scottish and UK Governments working together constructively.

"Longer term, if more strict restrictions become necessary in the future, that will require assistance from the Treasury and we will make that clear in discussions with the UK Government. 

"But in the short term, to keep Scottish jobs safe, businesses need extra cash urgently. The SNP must act before the damage is done."

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