SCOTLAND’S Finance Secretary has called for clarity from the UK Government over an extra £700 million in funding provided to Holyrood.

In an update to his winter economic plan, Chancellor Rishi Sunak announced an increase in cash being made available to the Scottish Government for its response to coronavirus.

Sunak also announced an extension to the furlough scheme, which was due to end this month, for the next six months – with those working in businesses forced to close having two-thirds of their wages covered by the UK Government.

The Treasury said the increase in funding means £7.2 billion extra cash has been provided to the Scottish Government, but Kate Forbes said there should be more clarity on what it covers.

Writing on Twitter yesterday, Forbes said: “I welcome further consequential funding announced by the Chancellor today, though some clarity still needed on what it covers in terms of health, transport and business support.

“Adapting the job support scheme to mitigate the impact of localised lockdowns is also welcome.”

According to Chief Secretary to the Treasury Steve Barclay, a meeting was held between the department and devolved administrations before Sunak’s announcement yesterday.

Barclay tweeted: “Good to discuss the UK-wide expansion of the Job Support Scheme with my counterparts in Scotland, Wales and Northern Ireland today and confirm we’re giving the devolved administrations a £1.3bn guaranteed funding increase to help their Covid response.

Commenting on the Chancellor’s announcement of an expansion to the Job Support Scheme and impact of current Scottish Government restrictions on the hospitality sector, Stephen Montgomery, spokesperson for the Scottish Hospitality Group, said: “While the Chancellor’s announcement on job support is certainly welcome, we need to see how the budget will be split to understand whether it will be too little too late for many Scottish businesses.

“The £40m allocated by the Scottish Government doesn’t even touch the sides. Stretching across 20,000 licensed Scottish premises, it amounts to just £1000 per week per unit – leaving an average shortfall of £6000 per premises. It is not viable and compared to Liverpool, that is paying four times this level of support, it demonstrates the Government’s lack of knowledge and recognition of our input to the country’s economy.

“In addition, the Job Support Scheme doesn’t kick in until next month which will mean that 500 staff across our businesses alone won’t be covered by furlough support over the next two weeks. If the lockdown extends indefinitely then we are faced with making very difficult decisions over the coming weeks. It’s young Scots who will be hardest hit by these restrictions. More than 25% of our members’ 6000 staff are under 25 and it is this generation that is likely to pay the heaviest price for this latest lockdown.

“The next two weeks will be critical in identifying the role that bars and restaurants play in the transmission of the virus. At that point, hopefully the Government will stop penalising our industry and step up and work with our sector to deliver a result that both combats coronavirus and safeguards an industry worth £10.6bn to Scotland annually. They need to recognise that we offer a safe and controlled environment and should be seen as a vital part of the solution, not the problem.”

Andrew McRae, the Federation of Small Businesses’ (FSB) Scotland policy chair, said: “The Chancellor has listened to calls from FSB that smaller businesses need additional, targeted support to help them survive new lockdown measures.

“The extension to the furlough scheme will be a relief to employers and employees alike who have been forced to close by government rules.

“Since Scotland’s first big local lockdown in Aberdeen, we have been clear that a second wave of virus restrictions needs a second wave of support for business. Today’s announcement of grant funding for those taking a hit in England will boost the support pot available in Scotland.

“The priority here must now be to see how it can best be deployed to protect those forced to close, their suppliers and others who depend on the hospitality sector or night-time economy.”