Perth businessman John Bryden has followed the Scottish Government’s COVID rules to the letter.
So he was dismayed to learn an application from the award-winning Loft Nightclub and The Ice Factory for December Nightclub Closure Fund support has been rejected.
Mr Bryden, who had a 40-strong staff payroll before the pandemic struck, yesterday described the Scottish Government’s decision as “a bombshell.”
He now has the Night Time Industries Association and the Scottish Chambers of Commerce fighting his corner.
Mr Bryden said: “ Perth and Kinross Council staff have been very supportive in processing our lengthy and time-consuming application.
“We were confident it would be a formality given that we have been a well-known name in the Perth night-time economy for many years.
“But we have been informed that our application has been declined on the basis we do not meet the nightclub criteria.
“The only reason we have been given is that they are deemed to be ‘hybrid’ businesses.
“The last 18 months and more have been disastrous for bars, restaurants and nightclubs but we realised that public health had to come first.
“We followed the Scottish Government’s guidance every step of the way.
“The doors stayed closed on Hogmanay, despite having DJs booked and all the associated costs that had to be picked-up after preparing for our biggest night of the year.
“The guidance indicated that closure funds would be available.
“On that understanding we maintained staff payments throughout January despite being closed. We didn’t want our staff to suffer financially at a difficult time of the year.
“We assumed compensation would be a formality given that the Ice Factory Nightclub in Shore Road opened in 1994 – it’s a former UK Nightclub of the Year - and the Loft Nightclub in South Street dates back to 2001 and extended next door eight years later.
“This decision has been made all the more baffling by the fact both nightclubs previously received grants from Perth and Kinross Council.
“We even have documentation from the Tayside Valuation Joint Board clearly stating that The Loft is a nightclub situated on the first floor, above That Bar, which is regarded as a public house.
“I find it hard to believe that given their history these businesses are not deemed to be nightclubs for accessing this support fund.
“In addition to daytime opening, they both open at the weekend from 11pm to 3am in more normal times.
“In addition, we charge a minimum £2 entry fee as part of our operating plan.
“This is enforced by the local authority and is applicable only to nightclubs.
“I believe Perth and Kinross Council is the only authority in Scotland to apply this condition, providing further proof that our premises are nightclubs.
“I can only assume there has been a misunderstanding and that whoever has made this decision has looked at the operating plan’s 11am to 11pm ‘core hours’ issued by the council and completely overlooked our extended weekend hours.
“Nightclubs have faced unprecedented challenges trying to cope with the series of lockdowns and being hit with this news is devastating.
“We are certainly going to appeal this decision and with no sign of nightclubs being allowed to operate normally for some time, we can only hope that common-sense prevails as we try to secure the future of both businesses.”
A Scottish Government spokesperson said: “The Nightclub Closure Fund provides support to businesses that solely trade as nightclubs and were required to close from December 27 until January 24.
“In contrast to the earlier scheme, businesses that could continue trading as a bar were not eligible for this funding.
"However, they may be eligible for other hospitality funds that are aimed at businesses affected by the necessary measures introduced to control the spread of the Omicron variant.
“There is a review process available to nightclub businesses who think they have been incorrectly declined for funding.”
