Scottish Government pledges £10m to fund businesses affected by Union Street fire

The Scottish Government has pledged a £10m fund to help businesses affected by the Union Street fire.

More than 71 Glasgow businesses were impacted after a raging inferno tore through a historic city centre building on Sunday afternoon.

The burnt-out Union Corner site was handed over to Glasgow City Council on Thursday after emergency services finished their work.

They said it is in the interests of public safety to demolish what remains of the Victorian building, and the slow process of that work began on Friday.

On Saturday, First Minister John Swinney announced a financial package worth up to £10m to help the council, businesses and agencies “rebuild and renew” in the aftermath of the devastating blaze.

The council will administer the scheme by engaging with local businesses to understand how they have been affected.

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Additionally, up to £1m will be made available to help the council with demolition costs.

The Scottish Government’s contribution to discretionary non-domestic rates Hardship Relief for those impacted will also increase from 75% to 95%.

The First Minister said: “There has been significant disruption for people and businesses as a result of the devastating fire at Union Corner, including through the closure of Glasgow Central station.

“As I made clear in the immediate aftermath of the fire, the Scottish Government is absolutely committed to working closely with Glasgow City Council to ensure financial support was available.

“Some owners have lost their properties, in some cases their livelihoods, and others have been affected by access issues because of safety restrictions around the site.

“I am grateful to Glasgow City Council for talking to business owners about their circumstances, and that important work has established a clearer understanding of the extent of the support that is required.

“Following that engagement, I am pleased to confirm the Scottish Government will deliver a package of financial support, including up to £10m to help businesses in this important part of Glasgow.

“The Scottish Government remains committed to working urgently with partners to ensure there is the fullest possible recovery in what is the heart of the city centre.”

Glasgow City Council leader Susan Aitken welcomed the financial package.

Cllr Aitken said: “The support Glasgow has had from the Scottish Government since Sunday’s terrible fire has been hugely important – and that is going to continue to be the case as we move on from an emergency response into recovery.

“The first call I took on Monday morning was from the First Minister. He was absolutely clear then that this was an incident with a national impact and that Glasgow wouldn’t stand alone in building back from it.

“So, while I was always sure help would be forthcoming, it is really pleasing to see that starting to take shape at pace, with his announcement this afternoon.

“This is meaningful support, not just for the council and those suffering hardship – but an investment in the future of the city centre.”