COVID-19 – impact on Scotland’s businesses, workers and the economy

 

About the Inquiry

The Committee held an ongoing inquiry on the impact of COVID-19 on Scotland’s economy, including businesses and workers. The Committee issued an open call for views after the crisis began; we thank those who submitted evidence. This helped inform the Committee’s scrutiny of the Scottish and UK Governments’ responses to the crisis. COVID-19 was also the focus of the Committee’s scrutiny of the Scottish Government’s budget. 

You can read the written submissions received here:

Written Submissions received

At its meeting on 24 March 2020, the Committee took evidence from the Cabinet Secretary for Economy, Fair Work and Culture on the impact of COVID-19. 

Following the evidence session, the Committee wrote to the Cabinet Secretary. The Cabinet Secretary responded on 10 April 2020.

The Committee held further evidence sessions on Monday 18 May 2020 Friday 29 May 2020 and Tuesday 2 June 2020.

Evidence

The Committee's second phase of work on COVID-19 focused on 4 areas. The Committee's online consultations on these areas closed on Friday 31 July 2020. You can read all the responses received at the following links:

The Committee also asked young people about the impact of COVID-19. You can read their responses at the following link:

The Children and Young People’s Commissioner Scotland wrote to the Committee regarding the impact of the Covid-19 pandemic on children and young people.

As part of its COVID-19 inquiry, the Committee held focus groups with young people and businesses. 

 

The meetings can be viewed below:

Businesses:

Young people:

On  6 October 2020 the Committee took evidence from Jamie Hepburn, Minister for Business, Fair Work and Skills.

Regional focus groups with young people

The Committee held focus groups with young people to inform their evidence sessions on the impact of COVID-19 in urban and rural areas and the North East. Notes of the main points made in the focus meetings are set out below, along with supporting information provided by participants following the meetings:

On 26 November 2020, Enable Works wrote with supplementary information on the impact of COVID-19 on young people:

On 27 November 2020, Enable Works wrote with further supplementary information on the impact of COVID-19 on young people 

On 12 January 2021, the Scottish Youth Parliament wrote to the Committee regarding the impact of COVID-19 on young people’s career prospects:

Correspondence

On 16 April 2020 the Committee wrote to the Cabinet Secretary for the Economy, Fair Work and Culture, the Cabinet Secretary for Finance and the Chancellor of the Exchequer. 

The Cabinet Secretary responded on 25 April 2020. HM Treasury responded on 11 May 2020.

On 6 May 2020 the Committee wrote to the banks regarding support being offered by banks to businesses during the COVID-19 crisis.

Responses:

On 11 May 2020 the Committee wrote to the Cabinet Secretary for Economy, Fair Work and Culture seeking an update on a number of points.The Cabinet Secretary replied on 22 May 2020.

On 26 May 2020, the Committee wrote to Chief Secretary to the Treasury.The Chief Secretary responded on 5 June 2020. The Committee wrote again to the Chief Secretary to the Treasury on 16 June 2020. The Chief Secretary responded on 29 June 2020.

Energy Transition Fund

On 12 June 2020, the Cabinet Secretary for the Economy, Fair Work and Culture wrote to the Committee to inform it of the Energy Transition Fund.

Advisory Group on Economic Recovery

On 19 June 2020 the Cabinet Secretary for the Economy, Fair Work and Culture wrote to the Committee ahead of the publication of the group's report: Scotland Needs a Robust, Resilient Economy: The Report of the Advisory Group on Economic Recovery

On 30 June 2020 the Committee wrote to Fiona Hyslop, Cabinet Secretary for Economy, Fair Work and Culture regarding the Scottish  Government's intention to respond to the group's report. The Cabinet Secretary responded on 2 July 2020. The Deputy First Minister and Cabinet Secretary for Education and Skills and the Cabinet Secretary for the Economy, Fair Work and Culture responded on 5 August. 2020.

On 30 June 2020 the Committee wrote to the Rt Hon Alok Sharma MP, Secretary of State for Business, Energy and Industrial Strategy to ask whether the UK Government intend to produce an economic recovery plan. The Department for Business, Energy & Industrial Strategy responded on 27 July 2020.

Parliamentary Engagement on Green Recovery

On 24 June 2020 the Environment, Climate Change and Land Reform Committee provided an update on recent developments in relation to green recovery and the work of the Committee.The Convener replied on 8 July 2020.

On 22 September 2020 the Environment, Climate Change and Land Reform Committee wrote to the Committee with an update on its green recovery work.

COVID-19: enterprise and skills agencies

The Committee has written to the enterprise and skills agencies seeking further information.

Responses:

On 31 August 2020 seeking further information from Highlands and Islands Enterprise.

The Committee has also written to the following Committees:

  • Culture, Tourism, Europe and External Affairs Committee  
  • Education and Skills Committee  
  • Finance and Constitution Committee
  • Health and Sport Committee  
  • Local Government and Communities Committee 
  • Rural Economy and Connectivity Committee  

Following the Committee's meeting on 22 September 2020, Scottish Enterprise wrote to the Committee to provide supplementary information on a number of issues raised during evidence: 

Business Support

On 8 July 2020 the Committee wrote to the Cabinet Secretary for Economy, Fair Work and Culture seeking an update on support offered to businesses. The Cabinet Secretary responded on 22 July 2020.

On 6 August 2020 the Cabinet Secretary for Economy, Fair Work and Culture wrote to the Committee regarding the application and award data for the Pivotal Enterprise Resilience Fund, the Creative, Tourism and Hospitality Enterprises Hardship Fund, the Newly Self-Employed Hardship Fund, and Bed and Breakfast Hardship Fund.

On 19 August 2020 wrote to the Cabinet Secretary for the Constitution, Europe and External Affairs and the Secretary of State for Scotland regarding the provision of information to Committees. The Cabinet Secretary responded on 14 October 2020. The Secretary of State for Scotland responded on 9 November 2020.

COVID-19: impact on young people

On 27 August 2020 the Committee wrote to Professor Sir Anton Muscatelli to ask him to respond to a number of points raised in our evidence sessions:

ScotGrad Scheme

Following the Committee's evidence session on 15 September 2020 the Committee wrote to Highlands and Islands Enterprise regarding the ScotGrad scheme. Charlotte Wright replied on 1 October 2020.

On 13 January 2021 the Committee wrote to the Cabinet Secretary for Economy, Fair Work and Culture setting out a number of issues raised with the Committee which are additional to the issues covered in the report. The Cabinet Secretary responded on 27 January 2021.

Impacts of Covid-19 on young people

The Committee took evidence from the Minister for Business, Fair Work and Skills on Tuesday 16 March 2021. The Minister followed up on 24 March 2021.


Report

The Scottish Parliament Information Centre (SPICe) and the Economy, Energy and Fair Work Committee commissioned a research report from the Institute for Government; Authored by Gemma Tetlow and Grant Dalton.

The Committee published its report on COVID-19: impact on businesses, workers and the economy and pre-budget scrutiny on Friday 13 November 2020.

 
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