SCOTLAND’S councils are to benefit from an £80 million cash injection as the Government launches its Covid Economic Recovery Fund.

Local authorities will have the option to target support using existing schemes, like Scotland Loves Local and Business Improvement Districts, place based investment programmes or individual local authority grant schemes.

Councils will also to able to use the funding to support low income households.

A further £3m has been allocated to the City Centre Recovery Fund, which supports sustainable economic recovery for local authorities in seven of Scotland's cities.

Nicola Sturgeon made the announcement as she met with business owners in Edinburgh city centre.

It comes ahead of her speech in Holyrood tomorrow, in which MSPs will hear the Government’s revised Strategic Framework – an updated plan to help the country recover from Covid-19 as restrictions are eased.

READ MORE: Boris Johnson's Covid plan could leave Scotland 'driving blind', health expert warns

The First Minister said: “This £80m Covid Economic Recovery Fund allows councils to consider the needs of local businesses, communities and households and to target support to maximise economic recovery in their areas.

“We know public health measures which were necessary to control Covid-19 have had a severe economic impact and, since the start of the pandemic, businesses have benefitted from more than £4.4 billion in support from the Scottish Government.

“It is our aim to get back to normality as quickly as possible. Our updated Strategic Framework, which I will set out to Parliament tomorrow, will support resilience in communities across Scotland by outlining robust plans to prepare for possible new variants or other future emergencies, should we need to act to protect public health.

“Of course, the best way to support business sustainably is to act responsibly and to sustainably manage the risks the virus presents as we begin to live the more normal life that we all crave."

The Covid Economic Recovery Fund is made up of the remaining funding from the £375m Omicron business support package and underspend from some of the funding allocated, where business demand has been lower than initially forecast.

The roll out was welcomed by Cosla president Alison Evison, who said the “flexible funding” will help local authorities “support local businesses, communities and low income households”.

She added: “This additional funding will enable councils to play an even greater role in supporting economic and social recovery in their areas, as we move out of the Covid-19 pandemic.

“We know that businesses, communities and low income households have been hit hard over the last two years and local government has been at the forefront of supporting those most affected. The flexibility offered by this funding will enable councils to provide local support where they know the need is greatest.”