Midlothian economy 'on its knees' over Level 3 decision

Businesses in Midlothian face going to the wall over the "11th-hour decision" to keep the area in level three, Scottish Labour leader Richard Leonard has said.
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He is now calling on ministers to provide additional funding for firms in the area after ministers indicated last week it would move into level two, allowing greater opening hours for hospitality.

That was reversed on Tuesday, in a move that local council leader Derek Milligan has branded “absolutely devastating” for the area.

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Richard Leonard raised concerns over Midlothian economyRichard Leonard raised concerns over Midlothian economy
Richard Leonard raised concerns over Midlothian economy
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Nicola Sturgeon insisted that an extra £30 million had been made available to businesses affected by the impact of the tiered regime of restrictions in the country.

Mr Leonard told MSPs in Holyrood that businesses in the area are "on their knees”.

“We all accept that the situation can be fast moving and the evidence can move in the wrong direction," he said as he quizzed Nicola Sturgeon.

"But decisions like this one today need to be a genuine co-production involving the locally elected council and the local business community, workers and their trade unions.

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“And in Midlothian they have been told for the last week that they would move to level two, including as recently as last Friday. It was only at 10:45 yesterday morning they were told that they may not. And only at 16:29, they were told by the Deputy First Minister that they definitely were not moving to level two."

It means that stock ordered by businesses to cater for extended hours is likely to go to waste, investment in health and safety measures won't be used and and staff re-hired will be laid off again.

"For some business owners enough is enough," Mr Leonard said.

"They are throwing in the towel, they are closing down for good and making staff redundant.

"They simply wanted certainty and they didn’t get it.

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“So, in these extraordinary circumstances like those facing the economy and people of Midlothian, Will the First Minister provide additional funding, over and beyond the £30m announced last week, which was to cover the whole of Scotland?

“Will she act to compensate and support these businesses and these working people caught out by this 11th-hour decision?"

Ms Sturgeon said it was made clear the announcement last week to move Midlothian to level two was contingent on there not being any deterioration in data.

"The deterioration of the position in Midlothian was such that the national incident management team discussed this and discussed it as recently as yesterday morning and came to a recommendation that it would not be sensible given that rise in cases to take Midlothian down a level," she said.

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Businesses in the area will get a share of the £30m, Ms Sturgeon added, which can be targeted at firms by the late decision to stay in level three.

The First Minister insisted that she understood how difficult the "general situation" was for businesses and individuals.

"I will never seek to sugar coat this - this is a torrid period for all of us," she said.

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