What is the policy/strategy/function/ trying to achieve/do?
The Scottish Government has provided North Lanarkshire Council with £1.71m of funding to provide support to businesses impacted by Coronavirus restrictions. Its aim is to mitigate the short term financial challenges being experienced by businesses due to the restrictions and regulations introduced since October 2020 to control the spread of COVID-19. The Discretionary Fund is being targeted at small and micro businesses (50 employees or fewer) particularly those that have received limited financial support since October 2020 and those businesses that have experienced significant disruption without having been specifically required to close or adapt their operations as a result of regulations.
If this is a budget-saving, how will the saving be achieved?
This is not a budget saving
If this policy is subject to the FSD what does it suggest about the impact or potential impact on socio-economic disadvantage?
Low income - There will be a significant proportion of lower-paid employees working within targeted businesses – the grant funding will help ensure jobs are retained thereby protecting low-income households from further financial hardship in the long-term
Low wealth - The provision of grant support to businesses will help sustain local employment - with 90% of businesses in North Lanarkshire employing no more than 50 employees the grant scheme will help to ensure the local economy can be sustained during the pandemic thereby allowing a quicker and more sustainable recovery post-pandemic. In addition to direct business support business rate income will be protected by increasing survivability of local businesses and this will help to tackle low wealth within North Lanarkshire
Material deprivation - Assisting organisations to survive the pandemic will help keep local people in employment (a high proportion of local people are employed in micro and small organisations) and help maintain business grant income within the local area. In a similar way to the positive impact on low income, this fund helps reduce potential material deprivation as a result of financial hardship.
Area deprivation - Targeted organisations have a high proportion of employees will that live in North Lanarkshire – by supporting businesses directly employment levels, income and wider economic activity can be protected thereby reducing area deprivation
Give details of the impact it has on groups and individuals
Those of working age should benefit either directly (self-employed) or indirectly (employees) from the grant scheme.
The grant fund will help businesses survive and continue to keep employees (many of whom live locally) in work
What actions/measures will be put in place or are planned to mitigate any adverse impact or promote equality?
No adverse impact has been identified. However, ensuring that the grant scheme is effectively advertised/promoted and ensuring that applications are processed in a timely manner will help ensure all funds are allocated as soon as possible thereby delivering positive economic benefits to businesses, their employees and other businesses that form part of a supply chain as soon as possible. Ensuring that grants are only awarded to eligible businesses will also enhance the intended benefits of the scheme
What is the result/ recommendations of the assessment?
Introduce grant scheme immediately and assess take up, effectiveness and impact on an ongoing basis