Crippled Sauchiehall Street businesses react as £5m fund announced

The cash boost comes after several businesses were put out of operation or dealing with less customers due to a drop in footfall as a result of two cordons which were set up following the Glasgow School of Art and Victoria's Nightclub fires.

Economy Secretary Derek Mackay confirmed the cash amid frustration from business owners while the Glasgow School of Art's Mackintosh Building is dismantled.

Mr Mackay said: "The terrible fires at the Glasgow School of Art and Victoria's are having a significant impact on many local businesses who are either closed or unable to access their premises.

"Given the scale of the on-going disruption, I am making up to £5 million available immediately to support those businesses affected.

"The sheer scale and lasting effects of the fires on those involved are becoming clear and it is important that businesses are given financial support to help them through this very challenging time.

"This funding will also help minimise the impact on the economy of the city as everyone involved works to help businesses and residents return to their premises as quickly and safely as possible."

The Scottish Government said Glasgow City Council would be given the extra funding to distribute to businesses inside the cordon and those in the wider Sauchiehall Street area who could demonstrate hardship as a result of the fires.

Jamie O'Neill, owner of Hotspot Mobile who started the Open for Business Glasgow campaign for Sauchiehall Street, welcomed the news.

Jamie, who also launched a petition calling for financial support for businesses, said: "It is definitely a step in the right direction - this is what we have been asking for. Business need financial support now.

"Hopefully the process is simple and accessible for people. If Glasgow City Council is administering it, their advisors should take steps to advise businesses."

He added: "We are hoping going forward that this will at least keep businesses afloat just now until the other parts of the street start to open back up.

"If a business is shut, it cannot make money. This fund has to go hand and hand with getting the street back opened. Otherwise, the money will not help a business which is going to be shut for several months.

"The money short term, however, will help and will give people hope but businesses need to be open."

Paul Evangelista, whose owns Sauchiehall Street Barbers and Absolut Hair and Beauty, said: "This has come at a time when the businesses really need it because a lot of them are on their knees. I just hope it gets delivered as urgently as possible."

Hisashi Kuboyama, the Federation of Small Businesses’ (FSB) development manager for the West of Scotland, added: “Many businesses in Glasgow city centre are likely to be facing short term cashflow difficulties as a consequence of the recent fires. This additional funding is hugely welcome – and should help more businesses survive this difficult period.

“In the last few weeks, we’ve seen relationships break down between residents, business and authorities. Key to rebuilding trust will be effective communications between decision-makers and locals.”

Those firms within the Glasgow School of Art and Victoria's cordons will receive £20,000 of direct financial support, with other businesses in the area impacted are eligible for £10,000.

The move follows rates relief for affected businesses and grants of £3,000 for Garnethill residents, who have not been able to access their homes since the Glasgow School of Art fire.

Glasgow MSP Pauline McNeill, who marched alongside Garnethill residents and business owners on Sunday during a peaceful protest calling for access to properties within the cordon, said: "Along with the business owners I have been calling for a fund for the last five weeks.

"This fund has come about because of pressure from the Sauchiehall Street businesses.

"I wholeheartedly welcome this fund being created by the Scottish Government and I look forward to having an opportunity to examine the scheme in detail.”

Alison Thewliss MP said: I am greatly encouraged that funding, which is being made available to Glasgow City Council in order that it can be properly disseminated, will be available to businesses both inside and outside the cordon areas. This is important, as the impact is clearly being felt across a significant area, and not just in the immediate vicinity of where the fires took place.

“Many businesses, both large and small, have contacted me over the past few weeks detailing the extent of the impact that these tragedies have had, particularly with regards to cash flow, and it is only right that financial support is extended to help them at this difficult time.

“Sauchiehall Street is home to a number of Small and Medium Enterprises, and they are the backbone of Scotland's economy. I am hopeful that this funding will go some way to ensuring that all businesses can make a full recovery”.

Glasgow City Council leader councillor Susan Aitken said the fund 'complements' a range of actions already undertaken by the local authority to support businesses.

She said: "The Victoria's and School of Art fires have had a significant adverse impact on businesses at both ends of the street.

"The council has been working closely with the Scottish Government to facilitate this fund, which we hope will assist those business affected by both events.

"This fund complements the range of actions that we have taken in the past few weeks to support businesses including the use of the Glasgow Guarantee to support employees, having dedicated business support advisers based in the Dental Hospital and the Savoy Centre, supporting businesses to relocate outwith the cordon, hosting a session on insurance and legal issues with Harper McLeod, introducing zero rating for businesses in the cordons and reduced rates for businesses who can demonstrate detrimental impact.

"Additionally, I have convened a Sauchiehall Street Task Force which is working on plans for the future viability and vibrancy of the street."

Applications for the new fund will open on July 31 with eligibility for businesses outside the cordon still to be set out.