An extra £1.2million of government cash is set to be handed out to East Renfrewshire businesses in top-up payments.

Councillors will be asked to agree to using discretionary funding to help struggling firms who have already received financial support under the first phase of the scheme.

East Renfrewshire Council initially received around £540,000 from the Scottish Government’s local authority discretionary fund in December.

That money was made available to companies who had been unable to access other Scottish Government funds, particularly those who hadn’t received help since October.

One-off payments of £2000 per business were offered, to around 270 firms, during the last round.

In March, the council was allocated an additional £1.25m. Council officers are proposing the top-up payments are awarded to eligible local businesses who have already received support from the discretionary fund.

“The aim of the Scottish Government’s local authority discretionary fund is to mitigate the short-term financial challenges being experienced by local businesses adversely impacted by Covid-19 restrictions,” a council report states.

“Unlike previous funds which have been targeted towards specific groups or sectors impacted by Covid-19, this fund seeks to empower local authorities to direct additional financial support to specific groups or sectors within the business community where they consider this to be necessary or justified based on the distinct characteristics of their local economies.”

It adds: “The fund will provide much needed support to those local businesses who have been adversely impacted by Covid-19 restrictions and regulations introduced since October 2020.”

Businesses are required to fall into three categories: those that supply goods or services to firms that have been closed or restricted; those facing hardship due to restrictions but who have been ineligible for strategic funds; firms who do not have a business premises and were therefore ineligible for grants attached to the rates system.

All businesses must operate in East Renfrewshire and employ less than 50 staff.

In total, the council has processed nearly 5000 Covid-19 grant payments, amounting to more than £17m.