Business chiefs fear running out of cash
BUSINESSES have warned they are running out of money as they condemned the lack of detail about when the economy will get back up and running.
Nicola Sturgeon said firms will begin to gradually reopen from the last week of April, when non-essential shops can welcome customers again and hospitality can resume – with severe restrictions on hours and a ban on selling alcohol.
But swathes of companies still have no return date and travel restrictions will remain in place indefinitely – leaving the tourism sector battling to survive. bosses also raised fears that they could face a ‘competitive disadvantage’ as firms south of the Border can get back trading sooner.
Dr Liz Cameron, chief executive of the Scottish Chambers of Commerce, said: ‘Time is of the essence. For many thousands of businesses, our debt is increasing, and our cash running out.
‘We would rather the Scottish Government would have applied the same amount of rigour to our road map as the UK Government to prevent further damage to Scottish businesses and the health and wellbeing of our communities.
‘Otherwise our ability to plan and invest is hamstrung. More detail on the road map is essential.’
She added: ‘It is important Scotland remains as closely in step with the four nations as is possible.
‘A competitive disadvantage to business communities elsewhere in the UK will only add insult to the injury already caused by the pandemic.’ Prime Minister Boris Johnson has set out his ‘one-way route to freedom’, which includes the return of outdoor hospitality from April 12, followed by indoor bars and restaurants from May 17.
The First Minister has said hospitality can resume no earlier than April 26, when the whole country is due to enter Level 3 of the lock-Business down framework. But under Level 3 rules, no non-essential travel is permitted outside of someone’s council area, while hospitality premises can open only until 6pm and must not serve alcohol.
Stephen Montgomery, of the Scottish Hospitality Group, said: ‘Our industry has been offered the promise of better days to come without the detail or confidence to plan for them.’
Scottish Licensed Trade Association spokesman Paul Waterson said: ‘A return to the tiered system will lead many operators to decide such restrictive reopening conditions are simply not worth the time, effort and money involved.’
Click and collect retail services are due to return from April 5, when the definition of ‘essential’ retail will be extended to allow more shops to open.
But other non-essential retail will not return before the move to level 3, scheduled for April 26.
It means most non-essential
Click and collect to return on April 5
shops will have been closed for 17 weeks from Boxing Day – at a cost of £135million a week in lost trade.
David Lonsdale, director of the Scottish Retail Consortium, said the decision to scrap curbs on click and collect and expand the definition of essential retail ‘are encouraging’.
Andrew McRae, Scotland policy chairman for the Federation of Small Businesses, said the movement on schools and the vaccine progress was ‘good news’ but added: ‘The Government must continually review whether this timetable can be accelerated [and] travel restrictions lifted.’
Tracy Black, CBI Scotland director, said it was ‘a small step in the right direction’ but ‘many businesses will be left feeling deflated’. She added: ‘All eyes will be on the Budget for an update on the furlough and business loan schemes.’