Contingency Fund - nightclubs and softplay centres

Support provided by Scottish Government

What does this involve?

The Contingency Fund is part of the £40 million made available to support employees and businesses currently impacted by national and local Covid restrictions.

This fund will be issued in phases. Phase 1 will support nightclubs and soft-play centres that have been closed by law since March 2020. 

These businesses have been affected by the exceptional circumstances of being closed by law from March 2020. These grants should not be regarded as setting a precedent for future business support or as setting a standard for the next phases of the Contingency Fund.

This will operate as a three-tiered scheme, with awards dependent on Rateable Value. Eligible businesses will receive a:

  • £10,000 grant for a property from which they operate with a rateable value of £18,000 or under; or
  • a £25,000 grant for a property from which they operate with a rateable value between £18,001 and £51,000; or
  • a £50,000 grant for a property from which they operate with a rateable value above £51,001.

Businesses operating multiple premises will be eligible for each one, with second and subsequent locations payable at 75% of the standard rates set out above.

Am I eligible?

This is for nightclubs and soft play centres. In addition:

  • your business must have been fit to trade on 1st March 2020, and not insolvent as at 1st October 2020 or have had directors disqualified under Company Directors Disqualification Act 1986
  • your business premises must be registered for Non-Domestic rates. Businesses that pay rates through their landlords rather than directly to a Council are eligible to apply (evidence to be provided through copy of lease agreement).
  • if your business operates multiple premises you are eligible for grants for each one, with second and subsequent locations eligible for 75% of the standard rates set out above. You must pursue only one claim for all locations, working with the local authority in which your business is headquartered.
  • you must have a business bank account.
  • you must provide details of all prior support of any kind provided by local government, the Scottish Government or the UK Government, and this must fall below the cap for EU State Aid Rules.

Limited Companies, Sole Traders, Trusts and Partnerships are eligible provided they meet the other criteria.

Additional eligibility criteria for soft play centres:

  • you must have separate 'pay to play' charges (for clarity, this grant is not available to businesses that have a courtesy soft play area for customers i.e. car showroom, restaurant, airport, dentists waiting area, or is free to use as part of a larger entity etc)
  • if your 'pay to play' Soft Play is within a multiple use unit, and use is not separately defined in the valuation roll, the 'pay to play' soft Play's Rateable Value will be determined on the percentage of floor space it occupies including a pro-rata percentage of any attached café/retail area.

Additional eligibility criteria for the nightclub sector:

  • where you have received (or will receive) funding of equivalent or greater value from the Culture Organisations and Venues Fund (COVF) from Creative Scotland you will not be eligible for funding except for insofar as a top-up payment may be made if the COVF award is less than the award otherwise payable through this Discretionary Fund.

Those who are not eligible to apply:

  • businesses which have breached wider COVID regulations/requirements prior to local restrictions
  • businesses with connections to tax havens, as set out in the Coronavirus (Scotland) (No.2) Act 2020

What does this cost?

There is no cost. Your local authority will contact you shortly to begin the process of gathering information in support of your claim

How long does this take?

You do not need to apply for this funding. Your local authority will contact you shortly to begin the process of gathering information in support of your claim.

 

Important information

Remember, if you operate multiple locations you must pursue only one claim, working with the local authority in which your business is headquartered.

 

Next steps

Visit the Scottish Government website for more information.

Support provided by Scottish Government

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