The coronavirus lockdown may very well be a “disaster” for companies in Scotland, trade leaders have mentioned.
The Scottish Chambers of Commerce (SCC) mentioned 40% of companies had reported a drop-off of 90-100% of all revenues.
And practically half predict their cashflow will solely preserve them afloat for between one and three months.
The SCC mentioned its analysis steered fears over the harm that’s being inflicted throughout all ranges of the financial system have been “rising by the day”.
The group’s president, Tim Allan, informed the BBC’s Good Morning Scotland programme there was “phenomenal ache being borne by Scottish companies”.
He referred to as on the Scottish and UK governments to assist as many companies as potential survive past the tip of the lockdown.
Mr Allan mentioned: “Companies are closing now and won’t reopen.
“Companies are going to fail, livelihoods are going to be broken – however they shouldn’t be broken unnecessarily by us not get our planning proper.”
Mr Allan mentioned the Scottish enterprise group “completely recognises that governments in Holyrood and Westminster have carried out the correct issues and are doing the correct issues”.
He mentioned: “The precedence for presidency is to guard folks’s lives after which subsequently defend their livelihoods.
“Companies have responded very responsibly and really efficiently in scaling again and permitting staff to self-isolate.
“However there must be planning throughout the authorities for bringing the financial system again up once more.”
Determined plea for an exit technique
It is clear the coronavirus is already delivering a hammer blow to the financial system. It is a main long-term risk to many employers and prosperity in Scotland.
The Scottish Chambers of Commerce are saying 4 in 10 of the businesses they’ve spoken to have seen their earnings fall to nearly nothing.
Companies perceive the explanations for lockdown however they need readability. They wish to know if police will use powers to cease staff travelling to work. They need readability on the distinction in opinion between Holyrood and Westminster about whether or not development staff ought to keep on the job.
Above all, they’re determined for an exit technique. We have barely began this lockdown and companies are asking if there was sufficient consideration in regards to the dangers to folks’s lives from the financial value we’re paying.
Are we prepared for a lockdown that can destroy companies which were constructed up over a few years?
Mr Allan mentioned that companies needs to be concerned now in discussions over who can return to work and when.
Nevertheless, he warned they might really feel the results of the coronavirus lockdown “on a multi-generational” timescale.
He mentioned: “We’re taking a look at the potential for mass ranges of unemployment and an financial disaster if we do not put together for the second at which we’re going to have the ability to launch the stress of the lockdown.
“I’m not saying that’s the common return to work of each employee within the non-public sector.
“However there needs to be a joint method in understanding, in granular element, who can return and when.
“The federal government ought to be capable of talk that successfully by all means – even when which means a job-by-job, company-by-company assertion on an internet site.”