ACT NOW, OR OUR BUSINESSES WILL HIT THE BUFFERS
The introduction of ScotRail’s temporary timetable risks tipping Scotland’s economy from growth towards another recession. The loss of around 700 daily services across the network is estimated to cost the economy around £75-80million every week. The outlook is bleak for business.
Those staggering figures also sit against the backdrop of grave economic forecasts which warn the economy remains in the balance. The rapid return to economic growth which followed the lifting of Covid19 restrictions has started to slow and the inflationary pressures facing both businesses and consumers are intensifying.
The cost of living and of doing business is now rising almost daily. The headroom available to businesses in their balance sheets and households in their budgets is limited, with little capacity to deal with additional economic shocks.
Decimating Scotland’s rail services will devastate the retail, hospitality, tourism, sports, leisure, entertainment and night-time sectors. The very sectors hardest hit by the pandemic, amongst the last to recover and consequently the most vulnerable to closures.
They are now braced for the impact of the last train on many routes now departing up to four hours earlier than usual.
Many small and medium-sized businesses across the country will feel the direct and painful impact these cuts will inflict.
The Bute house Agreement which saw the formalisation of the working agreement between the Scottish Greens and the SNP pledged to support a ‘green economic recovery from Covid, respond to the climate emergency and create a fairer country.’
No one could have anticipated this Government would preside over cuts to hundreds of rail services, push commuters into cars and undermine efforts to develop a greener economy.
Town and city centre recovery is reliant on office worker footfall and passengers must have access to reliable and affordable train services that allow them to commute to and from work without paying over the odds.
Making rail travel regular, reliable and affordable is key in delivering climate change ambitions, yet services are being cut and ticket prices climb.
The impact of a reduced service will hit employees in many publicfacing sectors – those working late shifts in bars and restaurants, providing security and stewarding at live events as well as keyworkers in our supermarkets, NhS and other round the clock services.
With economic recovery in the balance, ahead of the critical summer season which will be make or break for many businesses in the tourism and hospitality sectors, the urgency of resolving this dispute cannot be overstated.
Scottish ministers must take a proactive role in discussions with the trade unions and ScotRail with the clear objective of finding a suitable resolution that works for all parties as a priority.
There must be an urgent solution to this crisis that could rip the beating heart of business out of many villages, towns and cities, which becomes increasingly likely with every day this rolled-back timetable operates.
Businesses need guarantees this timetable won’t operate a minute longer than necessary. The priority for all should be to swiftly reinstate the availability, consistency and accessibility of rail services.
Anything less will have catastrophic consequences for Scotland’s business community, our national hospitality and tourism offerings standing on the global stage and the long-term opportunities for economic growth.