Highland f irms facing economic ‘Armageddon’

THE Highlands and Islands could face economic ‘Armageddon’ before the end of this year, businesses have warned.

It was revealed last week that the region has a higher proportion of furloughed workers than any other part of Scotland, with more than a third of the workforce being paid by the state.

Around 60,000 workers get emergency payments but the UK Government plans to stop the coronavirus job retention scheme in October.

Serious concerns have now been raised that local communities will be ravaged by widespread unemployment.

Emmanuel Moine, manager of The Glen Mhor Hotel in Inverness and chair of the Inverness Hotel Association, said he faces making a raft of job cuts.

He added: ‘Most hotels or tourism attractions will have to borrow more money to survive. Many hotels that are already facing financial difficulties might simply be forced to close.

‘Hotels are generating between 10 per cent and 30 per cent of last year’s revenue. The hospitality sector employs 16,000 people directly. If the sector continues to perform at 30 per cent of last year’s revenue, we could easily imagine the sector will have to lose over half of its workforce.’

David Richardson, Highlands and Islands development manager at the Federation of Small Businesses, said: ‘The worst possible scenario would clearly be Armageddon. Many key employers are now running well below capacity, as are many high streets.

‘Highlands & Islands businesses as a whole remain extremely nervous.’