Businesses plea for clear guidance to exit Scottish lockdown

Businesses in Scotland want a clear plan to fire up the country’s mothballed economy, with seven in ten calling for clear advice from the government to help them recover, according to new research.

Nine out of ten firms warn that loss of income is their chief risk to survival if they are forced to endure another two months of lockdown.

It came as Nicola Sturgeon yesterday admitted that Scotland is facing an “economic emergency” after the latest jobs figures showed a stark rise in unemployment.

More than half of businesses (58 per cent) say it would take them a week or less to resume trading under a partial or complete end of the lockdown, according to a survey by Scottish Chambers of Commerce has found. But one in five (22 per cent) say they face imminent collapse in the next two months while 43 per cent fear they will not be able to survive if lockdown conditions persist.

A graffiti art work saying 'Stay Home' has appeared in Glasgow city centre. Firms are wanting clear guidance on how to exit the Scottish lockdown. Picture: John Devlin

Prime Minister Boris Johnson has already set out plans to get the economy going again south of the Border, with staff being encouraged to return to the workplace in England if they cannot work from home.

The Scottish Government said yesterday that similar “sector by sector” guidance is now being devised for firms in Scotland, but industry leaders north of the Border say it must be published soon.

Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: “Scottish businesses are bruised and it is still the case some are likely to fail.

“But those that are ready and able to get back to work are showing some signs of confidence they could make it through.

“What is clearly needed now is guidance, specific to sectors, on how to return to work in a way that is safe for employees, customers and the wider population.”

There have been pervious concerns among the business community about mixed messages coming from the Scottish and UK governments about which businesses can continue to operate during lockdown, such as the construction industry.

The vast majority (69 per cent) of Scots firms now say they would need clear advice and guidance from government to make a recovery. This need outstripped calls for further financial support, which was still deemed necessary by 54 per cent of respondents.

Up to 87 per cent of businesses have said loss of income is their chief risk to survival, while a further 63 per cent cite declines in cash flow as their most significant threat.

Dr Cameron added: “This survey shows that support from the range of schemes launched by both the Scottish and UK governments are having an impact.”

Almost half (48 per cent) of firms in Scotland are saying that they will need to adapt their business to a post Covid-19 environment, 21 per cent are saying that they only discussing how to potentially adapt at this stage, and 15 per cent see opportunity in a post Covid-19 world

A further 41 per cent are planning to make some changes to their business models for post Covid-19, with 35 per cent saying that their models will probably stay similar as they were before Covid-19.

Ms Sturgeon will publish a “route map” for Scotland’s exit from lockdown tomorrow and has said that reviving the economy will be at its heart.

She said yesterday that public health measures on dealing with Covid-19 had “themselves created an economic emergency” with an impact on jobs, living standards and inequalities in society.

“Many people will be deeply concerned about the future of their livelihoods,” she said.

“That’s why we’ve already allocated more than £2.3bn to support businesses and why we’ve welcomed, so warmly, many of the measures taken by the UK government including the Job Retention Scheme.”

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

With the coronavirus lockdown having a major impact on many of our advertisers - and consequently the revenue we receive - we are more reliant than ever on you taking out a digital subscription.

Subscribe to scotsman.com and enjoy unlimited access to Scottish news and information online and on our app. With a digital subscription, you can read more than 5 articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.scotsman.com/subscriptions now to sign up.

Our journalism costs money and we rely on advertising, print and digital revenues to help to support them. By supporting us, we are able to support you in providing trusted, fact-checked content for this website.

Joy Yates

Editorial Director