A CITY centre alliance group that represents almost 70 local businesses has revealed new government funding during Covid-19 will not be enough to prevent shop closures. 

The Glasgow City Centre Small Business Alliance has warned firms are still at risk of falling under despite a £4.5 million fund being announced by the local 
authority.

Amjid Bashir – who owns Newsbox on Queen Street and who is spearheading the campaign – has warned the grants “fall short” of what is needed to save shops from closure as cash will only be enough to cover one month’s rent.

Glasgow Times:

READ MORE: Covid Scotland: 35 Glasgow businesses warn closures loom in lockdown

A total of £9000 will be available for those employing between 25 and 50 staff, £6000 for businesses employing between 10 and 24 and £3000 for firms employing nine or fewer than nine people.

Mr Bashir said: “Due to the fact that most newsagents and small businesses in the city centre will only employ six workers or less, we feel that £3000 isn’t really enough to cover the costs lost as a result of the changing restrictions and 
lockdowns.  

“It falls very short of what non- essential businesses have been given to survive the pandemic. I’ve been closed since December and it’s looking like we’ll be closed for another three months. 

“It falls very, very short of how much we’ve lost. Although the government hasn’t forced us to close, we’ve had no other choice due to a loss of footfall and residency in the city centre.

“Although we welcome this fund and we’re very much grateful for it, the council still needs to assess essential businesses’ needs – particularly due to where we are located.”

Glasgow Times:

READ MORE: Glasgow fund to help firms which missed out on government cash

Mr Bashir stressed that while the cash will be substantial for businesses in other areas of Glasgow, units in the city centre still face struggles due to differences in rent prices.

He added: “The fund should have come about much sooner. We’re in a battle against time. I was hoping that the government would have given the same protection to us that non-essential businesses had from the Covid-19 fund.”

A Glasgow City Council spokesman said: “This funding is aimed at supporting those businesses affected by the pandemic who have not been eligible for funding from previous government support schemes.  

“This is a finite resource with the £4.467m for Glasgow coming from the £30m national fund, so while we appreciate the challenges that the business community – like all of us – face just now, we will use this discretionary funding to support those businesses who need it most.”

Glasgow Times:

The Scottish Government said more than a third of overall Covid-19 funding – £3 billion – had been allocated to supporting businesses.

A spokesperson said: “We understand that all businesses face significant difficulties during the pandemic and we are committed to providing continued assistance, within our limited resources.

“Our Local Authority Discretionary Fund will be doubled to £60 million in this financial year to allow councils to respond to local needs.”