Coronavirus (COVID-19) business support: equality impact assessments

Scottish Wholesale Food and Drink Resilience Fund

Name of Grant:

Scottish Wholesale Food and Drink Resilience Fund

Policy Lead

Ewan Scott

Legal power used:

Section 8 of the Industrial Development Act 1982

Grant Overview:

The purpose of this intervention is to provide support to food and drink wholesalers that have/are encountering severe hardship as a consequence of the COVID-19 pandemic.

The fund is targeted at food and drink wholesalers who sell food and drink into the hospitality sector, on trade or public sector contracts.

For the purposes of this fund, food and drink wholesale must be the main part of the business and is defined for the purposes of this fund as being a route to market in the consolidation and distribution of multi-supplier stocks. For example a meat producer, food processor, or hatchery, who makes/grows/processes products as their main business but also carry out wholesale trade to local butchers or hotels etc. cannot apply as wholesaling isn’t the main part of their business.

Applicants who fit the following criteria will be eligible to apply for the fund. Food and/or drink wholesalers:

• who have seen a fall in sales by 20% or more since March 2020;
• are based in Scotland;
• whose business is exclusively or mainly wholesale – wholesale must equate to 80% or more of business turnover;
• who are a classed as small and medium-sized enterprises (SMEs) as defined in the EU recommendation 2003/361. Namely, employ fewer than 250 persons and have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million;
• who were not an undertaking in difficulty prior to 21 December 2019.

The intervention is to support a shortfall in fixed costs of operating the business and specific additional costs including losses of stock.

Executive Summary:

The impact of Covid-19 restrictions on the food and drink wholesale sector has been severe, particularly for those businesses who sell into the hospitality sector, on trade & public sector contracts. Many food and drink wholesalers are vital in getting food to rural and remote areas as well as ensuring continuity of public sector food provision, so it is paramount that these businesses are able to continue operating, and are ready to support the hospitality sector as it recovers.

The Scottish Government has therefore committed to a Scottish Wholesale Food & Drink Resilience Fund of up to £5.5 million following a number of representations from the Scottish Wholesale Association as well as companies in the food and drink wholesale sector. These representations outlined that there were a number of food and drink wholesale businesses who had been operating successfully prior to the Covid-19 situation, but were now facing severe hardship as a result of lost sales due to Covid-19 restrictions. The information provided made it clear that if emergency funding for the sector wasn’t put in place within a matter of weeks, then some of these businesses may not survive.

Within this context of needing to react quickly there is limited opportunity to gather evidence on the possible impacts of these measures. Nevertheless in developing these funds it is considered that protected characteristics are unlikely to be affected. The immediate priority is to mitigate the economic impact of the pandemic and help all food and drink wholesale businesses that are encountering severe hardship as a consequence of the COVID-19 pandemic survive.

We are also mindful that the equality duty is not just about negating or mitigating negative impacts, we also have a positive duty to promote equality. We have sought to do this through support and guidance available. For example we have made available support and advice from the Scottish Wholesale Association for any business requiring assistance in completing the application.

Key Findings - impact assessment of benefits and/or disadvantages.

Age: Older People and Children and Young People

Data was not available to assess the impact / specific characteristic is not likely to be affected

Sex: Men and Women

Data was not available to assess the impact / specific characteristic is not likely to be affected

Race

Data was not available to assess the impact / specific characteristic is not likely to be affected

Disability

Data was not available to assess the impact / specific characteristic is not likely to be affected

Religion and Belief

Data was not available to assess the impact / specific characteristic is not likely to be affected

Sexual Orientation

Data was not available to assess the impact / specific characteristic is not likely to be affected

Pregnancy and maternity

Data was not available to assess the impact / specific characteristic is not likely to be affected

Gender reassignment

Data was not available to assess the impact / specific characteristic is not likely to be affected

Marriage or Civil Partnership

Data was not available to assess the impact / specific characteristic is not likely to be affected

Socio-economic disadvantage: any people experiencing poverty

Data was not available to assess the impact / specific characteristic is not likely to be affected

Stakeholder Engagement:

The Scottish Government received a number of written representations from the Scottish Wholesale Association as well as companies in the food and drink wholesale sector. This also involved a number of one-to-one meetings with Ministers and officials. These representations outlined that there were a number of food and drink wholesale businesses who had been operating successfully prior to the Covid-19 situation, but were now facing severe hardship as a result of lost sales due to Covid-19 restrictions. The information provided made it clear that if emergency funding for the sector wasn’t put in place within a matter of weeks, then some of these businesses may not survive.

We have engaged extensively with the Scottish Wholesale Association during the pandemic on the fund guidance and application forms with a view to getting a suitable fund set up as quickly and effectively as possible under the circumstances.

Mitigations -

No adverse impacts identified on groups with protected characteristics.

Support is available to anyone needing advice in completing the application form. This is in the form of 1:1 support from the Scottish Wholesale Association by email or telephone initially to discuss any assistance that can be provided.

Next Steps (if any)

Declaration and Publication

I have read the Equality Impact Assessment and I am satisfied that it represents a fair and reasonable view of the expected equality impact of the measures implemented.

Signed: George Burgess.

Date: 11/10/2021