The UK Government’s emergency £750million hardship fund to help charities weather the coronavirus pandemic may “fall far short of what is required”, a Scottish MP fears.

On Wednesday, Chancellor Rishi Sunak announced the funding amid reports that many charities are facing collapse, with many losing income from the closure of their shops and cancellation of fundraising events.

The Scottish Government will receive an extra £30 million in Barnett consequentials to help charities north of the border.

Of the £750million, £370million will be allocated to smaller charities, including those that provide food, medical support and financial advice.

But Orkney and Shetland Lib Dem MP Alistair Carmichael has concerns.

He said: “This new support for charities is a welcome step, as is the decision to allocate at least half to small local charities.

“But we may soon find that what appears to be a generous level of support falls far short of what is required.

“Non-profit organisations form an integral part of our community support networks, with a value that goes far beyond a direct economic measure.

“They will be essential in our country’s resilience and recovery from the current crisis.

“While government support may not cover every cost, we must ensure that vital community groups can survive.”

Conservative Banff and Buchan MP David Duguid hopes the cash will help provide some stability, adding: “Hopefully this will help to keep them afloat until we can get back to something approaching normality.

“The UK Government has already taken unprecedented action to help prop up our economy through this crisis.”