£5m fund set up for businesses hit by Glasgow fires

Firms inside the cordon at the art school and at Victoria's will receive £20,000

Author: Colin StonePublished 25th Jul 2018

Businesses hit by the fires at the Glasgow School of Art and Victoria’s Nightclub are being given access to a fund of up to £5 million.

Economy Secretary Derek Mackay confirmed the Scottish Government will make the extra funding available to Glasgow City Council for handing out to affected firms.

Companies in the Sauchiehall Street area who can show they’ve been affected by the blazes will also benefit, with all businesses inside the cordons at both locations receiving £20,000.

Other firms outside the cordon – but in an affected area – will be eligible for up to £10,000 of support.

Glasgow City Council will take charge of the funding, with applications for all businesses open from the 31st July. Eligibility criteria for those outside the cordon will be set out ahead of the opening of applications following discussion with local business advisers.

Economy Secretary Derek 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 has already increased our contribution to hardship funding from 75% to 95%, and made available £1,500, matched by the Lord Provost’s Trust for vulnerable citizens, to residents displaced from their homes by the Mackintosh building fire and will extend that to businesses facing the same impacts as a result of the fire at Victoria’s. We will continue to work with Glasgow City Council to ensure the emergency funding is released to all those impacted as soon as possible, and we will continue to monitor the situation and consider what further assistance might be required.”

Leader of Glasgow City Council, Councillor Susan Aitken 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."