Emergency and hardship funding will be made available to households and businesses affected by the Glasgow School of Art fire after the Scottish Government increased its funding contribution.

The government will make available £1,500 of emergency funding for each household displaced because of the fire, which will be matched by Glasgow City Council to provide a total of £3,000.

A separate scheme will significantly increase Scottish Government funding, from 75% to 95%, for businesses able to demonstrate they have been negatively affected as a result of the fire. They can apply for up to 100% business rates hardship relief, with 95% of the cost met by the Scottish Government and 5% from the council.

Finance secretary Derek Mackay said: “This terrible event in Glasgow has had a huge impact on businesses and households in the city, and that is why I have been working with Glasgow City Council to offer essential financial support.

“The Scottish Government will therefore increase our contribution to hardship funding from 75% to 95%, and make available £1,500, matched by the council, to residents displaced from their homes.

“We are working with Glasgow City Council to ensure the emergency funding is released to all those impacted as soon as possible, and will continue to monitor the position and consider what further assistance might be required.”

Leader of Glasgow City Council, Cllr Susan Aitken, said: “I believe Sauchiehall Street has to be a local and national priority – and we are working with the Scottish Government to ensure that is the case.

“I have convened a taskforce to drive forward a long-term approach investment, regeneration and support - with strong voices from the business community around the table. However, it is important that both displaced residents and traders alike take advantage of the immediate support that has been put in place by both the council and government.”