Commenting on the First Minister’s COVID-19 update to the Scottish Parliament, in which the Scottish Government confirmed there will not be an extension to the Vaccine Certification scheme from the 7th of December, Dr Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce said:
“Businesses across Scotland will be incredibly relieved that the First Minister has listened to the concerns of the business community.
“Although this will have been a difficult decision on balance for the Scottish Government, it was the right one, and it keeps Scotland moving in the right direction. It is now essential that businesses and individuals continue to follow the relevant COVID-19 restrictions and guidelines to ensure our economy remains open and growing.
“Businesses and consumers will now be reassured that they can make plans over the coming weeks in the run up to Christmas and New Year, without the fear of additional economic deterrents or vaccine certification burdens being placed on them.
“Scotland’s businesses continue to do everything they can to support public health measures and to limit the spread of the virus, having invested millions into making workplaces Covid secure for employees, customer, suppliers and communities.”
On home working:
“Scotland’s town and high street economies are finally starting to recover and this is due, in part, to the gradual and phased return of office workers.
“Businesses, particularly those in the retail and hospitality sectors, who rely heavily on office worker footfall will be pleased that the Scottish Government recognise the importance of leaving decisions over office return entirely to businesses, in consultation and agreement with their employees.
“To keep Scotland’s office re-opening plans on the right track it’s important that businesses and government continue to do everything they can to support vaccine take-up, regular testing and compliance with COVID-19 baseline preventative measures.”
On Lateral Flow Tests:
“We are pleased that the Scottish Government have looked again at the available evidence and have acknowledged the clear benefits that LFTs provide.
“This is what businesses were calling for and it will also significantly ease and improve access to hospitality settings for consumers.
“Scotland was one of the few countries in Europe, where a vaccine certification scheme is in place, to not accept evidence of a recent negative Lateral Flow Test (LFT) in lieu of an individual’s Covid vaccination status and confirmation that this will change from next month will be very welcome news for businesses, employees and customers.”
Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, has written to the First Minister ahead of the scheduled Scottish Government COVID-19 statement tomorrow, in which an update to Scotland’s COVID-19 Strategic Framework is due to be published.
Commenting, Dr Cameron said:
“This is a critical time for Scotland’s businesses as we enter the Golden Quarter over the festive period where many businesses make most of their earnings for the year, and our members remain concerned about the impact that an expansion of COVID-19 restrictions and vaccine certification will have on them financially.
“Many businesses have gone above and beyond what is required of them when it comes to supporting public health measures, investing millions to ensure the safety and well-being of our employees, customers, suppliers, and communities. Businesses would back expansion of vaccine certification if the evidence being provided was clear, however, we remain unconvinced at this time that the public health benefits of an extension to the scheme outweigh the negatives for individuals, businesses and the economy.
“The SCC network have written to the Scottish Government to outline the concerns of Scotland’s business community and asking for the First Minister to seriously consider the economic damage that a return, or expansion of current restrictions, will have on Scotland’s economy by jeopardising recovery, creating more uncertainty for businesses and undermining consumer confidence.”
On home working:
“The modelling being put forward by the Scottish Government fails to demonstrate that ‘workplace’ transmission is taking place in office settings, and with office occupancy and return rates remaining low, a further encouragement of home working will have a devastating impact on our town and city centre economies, which rely on office worker footfall, and which are already struggling to adjust to changes in consumer behaviour and competition from on-line retailers.
“A return to a stronger message on encouraging home working from the Scottish Government, after months of collaborative working with businesses during which it was agreed that a gradual and phased return to offices could be done safely, would be a considerable step backwards.”
With Scotland having brought the world together at COP26, Scottish businesses are being urged to keep the momentum going.
The Scottish Chamber of Commerce international network is leading a trade mission to the World Expo in Dubai that will showcase the country’s innovation in clean energy and sustainability.
Having turned world-leading engineering skills to green energy, Scottish businesses can benefit from the strong sustainability theme that runs through the whole event.
Connect
Featuring more than 192 country pavilions, the event is bringing people from all over the world to connect and showcase world leading innovation and technology.
Some of the world’s most advanced technology is on show, making it the ideal stage for Scottish technical innovation.
As well as being home to the world’s first floating offshore windfarm, Scotland also has one of Europe’s largest hydrogen bus fleets.
A new power plant at Peterhead is the world’s first gas-fired power station equipped with carbon capture storage (CCS) technology. This will capture up to 1.5million tonnes of CO2 every year, which is 15% of the UK’s 2030 target.
There is a week of networking and events for the delegation, which will depart in January, along with time for delegates to take in the splendour of Dubai Expo and the World Future Energy Summit.
The summit is being held in Abu Dhabi from January 17 to 19, and is aimed at businesses making the transition from fossil fuels and driving the change towards net zero. The UK Pavilion is also hosting Scotland’s Race to Net Zero Day on January 19.
Momentum
Dr Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce, said:
“Scottish businesses are already taking action and developing innovative solutions to tackle climate change and have a role to play in keeping the momentum from COP26 going.
“Right across the energy eco-system, Scottish-based businesses are developing technology and sustainable solutions to create a zero carbon world.
“This delegation is aimed firmly at supporting businesses working in renewable energy, low carbon heat, low carbon transport, offshore wind, blue and green hydrogen and supporting the oil & gas transition to net zero.”
Cabinet Secretary for Net Zero, Energy and Transport Michael Matheson MSP said:
“Green energy is a vital component of delivering Scotland’s world-leading climate change legislation and becoming a net-zero economy by 2045.
“We have a long-standing heritage as energy engineering pioneers, from the development of hydro power to offshore wind, tidal energy and our ambition to become a Hydrogen Nation, and COP26 was an opportunity to showcase our expertise and commitment to being a global leader in a green energy transition.
“COP26 must deliver a lasting legacy for the people of Scotland and across the world. Expo 2020 Dubai presents us with a huge opportunity put Scottish companies in the spotlight, highlighting their innovation and pioneering spirit in developing cleaner energy systems to ensure a greener, fairer future for us all.”
Register
At what will be one of the first major in-person events as the world emerges from the COVID pandemic, the trade mission gives Scottish firms the chance to connect with hundreds of potential new business partners from around the world in a single visit.
Along with the support of 30 local Chambers across Scotland, Scottish Chambers will use its global links through the international Chamber network to set up meetings with carefully matched companies from around the world.
For more information or to register an interest in attending, find out more on www.exporthubscotland.com at www.bit.ly/TakingScotlandToTheWorld02
Speaking about today’s announcement, Trudy Morris, Chief Executive of Caithness Chamber of Commerce, said:
“Businesses across the North Highlands will have breathed a sigh of relief at today’s announcement by the First Minister that COVID-19 restrictions will not be extended. The current restrictions continue to prove extremely burdensome for businesses across many sectors and evidence from snap polling by Scottish Chambers of Commerce shows that almost 25% would face immediate financial peril should any extension be put in place.
“It is vital that Scottish Government communicates and consults closely with business communities over the coming weeks. As those on whom the burden of restrictions will fall most harshly, business owners need to have their voices heard as part of the decision-making process. We also need Scottish Government to communicate clearly and early on any future changes to regulations to ensure that businesses have plenty of time to prepare.
“The COVID-19 Ventilation Fund is a prime example of where Scottish Government could do better in its communications with business. Today’s announcement by the First Minister of specific types of business which can apply is the first confirmation any of us have had of the potential scope of this Fund. Given that it opens for applications next week – the first we have heard on timings also – that gives businesses very little time to prepare an application at what is for many the busiest time of the year.
“Finally, we were deeply concerned to hear that the Scottish Government continues to consider expanding the vaccine passport scheme to a wider range of hospitality venues. The festive period is crucial to the success and survival of these businesses and introducing additional restrictions at this time could sound the death knell for those who are already struggling to recover from the impact of previous measures. If any such expansion of the scheme is put into force, it must come with a substantial package of support for those businesses most affected.”
- Almost a quarter of Scottish firms fear that further Covid-19 measures will have a severe financial impact on their business.
- 65% of firms are against extension of the vaccine passport scheme to more hospitality and leisure venues, more home working, and a requirement that face coverings should be used in more settings.
- Scottish Government ministers briefed on strength of opposition to further restrictions ahead of cabinet meeting on Tuesday.
Almost a quarter of Scottish businesses are facing immediate financial peril should the Scottish Government extend Covid-19 restrictions today.
A snap poll of nearly 700 companies has revealed that many firms are struggling with existing measures – and that 24% face severe financial consequences if vaccine passports and home working measures are widened.
Ministers will meet today (Tuesday November 16th) to decide whether enhanced or new restrictions are required. Last night they were briefed on the scale of business opposition to such a move.
Nearly two-thirds (65%) of firms polled by the Scottish Chambers of Commerce Network are opposed to more restrictions, with 45% already feeling that the measures currently in place are no longer justified.
The Scottish Chambers of Commerce Network have already written to the Scottish Government stating that it is essential that Scotland’s business community is fully consulted before any additional economic deterrents are introduced.
The survey of Chamber of Commerce business communities across Scotland was conducted last week after Deputy First Minister John Swinney indicated that the government was considering new measures to curb the spread of Covid-19.
Trudy Morris, Chief Executive of Caithness Chamber of Commerce, said: “Any reintroduction of restrictions will act as a painful economic deterrent for businesses across the North Highlands. Businesses are already struggling with a range of issues including energy prices, staffing, and supply of materials, and we urge ministers not to take a massive step backwards in our economic recovery from the pandemic which would place thousands of firms and jobs at risk.
“It is critical that our economic recovery is not stifled as a result of further restrictions being implemented unnecessarily. Going backwards at this stage will put our recovery at risk, create further uncertainty and undermine consumer confidence.
“If restrictions are to be reintroduced under legislation, then companies will of course be forced to accept them, but Ministers must urgently outline the evidence for these decisions, detail what financial support the Scottish Government will make available to affected sectors and provide an end point to burdensome restrictions.
“We are also concerned that previous restrictions have been introduced at short notice, with guidance for businesses incomplete or incorrect, leading to more stress and hassle for business owners. For hospitality venues in particular, this is one of the busiest times of the year and we ask that Ministers give businesses plenty of time to prepare and implement any changes that are enforced.”
Commenting on the Deputy First Minister John Swinney’s statement to Parliament, in which the Scottish Government indicated existing Covid-19 baseline measures could be strengthened, including the extension of the vaccine passport scheme to more hospitality and leisure venues, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:
“The Deputy First Minister is right to say that Scotland is at a pivotal moment in our recovery from COVID-19 and that’s why it’s essential we don’t now take a massive step backwards through the introduction of further economic deterrents, enhanced baseline measures and increasing use of vaccine certification.
“Given the damaging implications that strengthening the existing baseline protective measures will have on Scotland’s businesses, the Scottish Government must urgently get round the table with businesses to demonstrate the evidence for ramping up restrictions and detail what financial support they will make available for businesses if they choose to do so.
“The positive economic forecasts that projected a return to pre-pandemic levels of growth in Scotland by early next year are all subject to there being no return of restrictions. It’s clear that this announcement from the Scottish Government will put this rapid return to growth at risk, create further economic uncertainty and undermine consumer confidence once again.”
On encouraging increased home working:
“Our town and city centre economies have taken a hammering over the past 18 months and those businesses which rely on office worker footfall from retail to hospitality and everything in between will be deeply concerned to hear the Scottish Government talking up the prospect of increased home working again.
“It’s clear the decisions around office return should be left to businesses, in discussion with their employees, and that offices shouldn’t be singled out once again as a key transmission point when many businesses have invested millions in ensuring workplaces are safe for staff, customers and clients.”
Following the Chancellor’s UK Autumn Budget announcement this week, Trudy Morris, Chief Executive of Caithness Chamber of Commerce, said:
“Businesses this week will be left disappointed and frustrated that the Chancellor has missed an opportunity to tackle the significant issues they face. Issues such as supply chain problems, skills shortages, and rising cost pressures particularly in energy.
“Whilst the fuel duty rise has been scrapped, which is welcome news, there was nothing for businesses in this budget to help offset the rising costs of gas and electricity which is threatening business recovery and hitting our local businesses hard. Along with our Scottish Chambers of Commerce colleagues, we have been calling for a SME Energy Price Cap.
“Whilst the Scale-up Visa may help some businesses, it will do little to help sectors such as hospitality, tourism, food and drink and agricultural. Businesses need a UK immigration policy which better aligns with the economic needs of the whole of the UK and is flexible enough to address the existing skills shortages across multiple industries.
“We are also disappointed to see there was no mention of VAT in relation to hospitality and tourism. There is real concern about VAT returning to 20% in March ahead of a new season. This sector has been one of the hardest hit during the pandemic and is suffering from a range of issues. We have long called for a reduction in VAT on this sector to bring the UK in line with European counterparts.
“As always with these announcements, there is little detail, and we are keen to understand how the UK Shared Prosperity Fund will work and help regions such as ours. The North Highlands has had significant EU funds in the past for various projects and infrastructure and we are keen to understand how this gap will be plugged. The UK’s track record with the Levelling up Fund and the still to be announced UK Community Renewal Fund, leaves a lot to be desired and we will be campaigning with colleagues to get more clarity.”
Reacting to the UK Government’s Autumn 2021 Budget, Dr Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce said:
“Scotland’s businesses are focussed on recovery and overall, most will welcome today’s announcements which go some way towards securing the economic growth and conditions businesses need to bounce back from the devastating impact of the last 18 months due to Brexit and the global pandemic.
“However, businesses are asking whether this Budget goes far enough to tackle the significant issues facing them and whether it aligns with the economic realities on the ground, where supply chain problems, skills shortages and rising cost pressures are undermining growth.”
On Inflation:
“Rising inflation rates are placing increased cost pressures on businesses, and confirmation that the Chancellor expects inflation to rise to 4% next year will make many firms feel uneasy.
“Businesses across Scotland have reported record high levels of concern over inflation and taxation, which is impacting on investment. Surges in the cost of raw materials and shipping, global supply chain disruption and the UK Government’s decision to raise National Insurance contributions, are all being cited by firms as key factors behind rising costs which still need addressed.
“It’s important the UK Government and the Bank of England work to get inflation under control, help businesses repair those broken or damaged supply chains and deliver the opportunity for firms to attract the talent and skills they need into the workforce, otherwise this will eventually lead to increased costs being passed on to consumers.”
On Fuel Duty and energy costs:
“Businesses in Scotland are struggling with rising fuel and energy costs and will welcome the scrapping of the anticipated 2.8p fuel duty rise. With soaring fuel prices this move will provide businesses with some relief as we go into the difficult winter months.
“Businesses will be disappointed though to see that there was nothing for them in this budget to help offset the rising cost of gas and electricity which is threatening business recovery right across Scotland. The introduction of a SME Energy Price Cap would have been a major boost to struggling firms and the Chancellor has missed an opportunity here.”
On Alcohol Duty:
“The cancellation of the planned duty hike on spirits like Scotch whisky, wine, cider and beer, will benefit Scotland’s producers and consumers in the short term. However, the industry will want to study the detail of the reform proposals announced in the Budget carefully.
“Scotch whisky is a cornerstone of Scotland’s food and drink sector and is already a highly taxed product. It’s important the Chancellor works with the industry in advance of the simplification of alcohol duties that is due to take place in February 2023, to ensure the tax burden on this flagship industry for Scotland is fair and proportionate.”
On Air Passenger Duty:
“The decision by the Chancellor to introduce a lower rate of Air Passenger Duty for domestic flights has given the sector a ray of hope, although it is disappointing that changes won’t come into effect until 2023.
“We know that Scotland’s airports and aviation sector are essential to growing Scotland’s economy and whilst this commitment will provide an opportunity for businesses to protect and renew Scotland’s vital connectivity both domestically and internationally, ultimately both Holyrood and Westminster Government’s should be seeking to further reduce or remove APD altogether.
“The COVID-19 pandemic hit Scotland’s aviation sector hard and the sectors recovery still lags behind our European competitors, so whilst this commitment is welcome news for Scottish airports and passengers, the sector still requires further support now to enable it to rapidly regain lost ground.”
On the UK Government’s Levelling Up Fund:
“The commitment from the UK Government for £170m in direct funding for Scottish projects will come as positive news for Scottish businesses, who will want to tap into this funding.
“The proposals will see significant investment secured for key projects across Scotland and will deliver some much-needed infrastructure projects that have the potential to increase economic activity.
“The Scottish Cluster Carbon Capture and Storage bid of course lost out last week on UK Government funding, which would have supported thousands of jobs and brought in huge investment into the Scottish economy, so whilst levelling up funding for Aberdeen and other parts of Scotland is welcome, it can’t come at the cost of support for other strategic investment opportunities.”
On talent and skills:
“There are record high vacancies in Scotland as businesses struggle to recruit staff in an increasingly competitive labour market.
“The injection of money into training and skills, coupled with the introduction of the Scale-up Visa, which will launch in spring 2022, will help Scotland’s fastest-growing businesses to access overseas talent.
“Regrettably, many businesses will not feel this goes far enough, fast enough. Scottish industry needs a UK immigration policy which better aligns with the economic needs of the whole of the UK and one which is agile enough to fill the immediate gaps that exist in the labour market, otherwise there is a real risk of stifling economic recovery.”
Energy crisis placing “enormous” pressure on Scottish businesses
Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce (SCC) has warned that Scottish businesses are being placed under “enormous” pressure by the rising cost of energy. Ahead of the UK Government Autumn Budget, Dr Cameron has written to the UK Chancellor Rishi Sunak MP, calling for the introduction of a Small and Medium Enterprise Energy Price Cap to protect Scottish businesses from the increasing price of gas and electricity ahead of the winter months.
One Scottish hotel group, The Caithness Collection, which operates across the north Highlands have reported a potential rise of £53,170 per year in electricity costs as they move to a new contract, the equivalent to a 70% increase on their current yearly bill.
An SME Energy Price Cap could include firms transferred to new providers to strengthen the ‘reasonable costs of supply’ limit at present, and firms locked into enforceable multi-year contracts.
Whilst the current domestic price cap(s) came about following a prolonged CMA investigation, SCC have asked the UK government to look carefully at this option as quickly as possible.
Commenting, Dr Liz Cameron, Chief Executive of SCC said:
“In the past few weeks, the UK has reached a crisis point over gas and electricity prices, and businesses are feeling the consequences.
“Many businesses in Scotland are still operating in survival mode and continue to recover from the dual challenges of the UK’s departure from the UK and the impact of the global coronavirus pandemic. It’s impossible for firms to keep pace with these exorbitant rises in energy prices and these cost pressures are putting many businesses under enormous pressure and resulting in these rising costs pressures increasingly being passed onto the consumer.
“The UK Government need to support business recovery over the winter months and SCC believe there is now a clear case to create an SME Energy Price Cap, including for microbusinesses, to protect smaller firms from some of these price increases which they would otherwise face.”
Commenting, Trudy Morris, Chief Executive of Caithness Chamber of Commerce said:
“The Scottish and UK economy remains in a fragile position and there are mounting challenges for businesses across sectors being created by inflationary pressures, labour market shortages and supply chains, an SME Energy Price Cap would take away one of these pressures and place business recovery on a firmer footing.
“Hospitality and tourism are key sectors for areas like Caithness and it’s vital that government, at all levels, use all the economic levers at their disposal to ensure businesses are able to recover during the winter months and not have a return to growth derailed by rising energy prices.”
Commenting, Andrew Mackay, Owner of the Caithness Collection hotel group said:
“The hospitality sector was one of the hardest hit throughout the pandemic and recovery is already proving challenging, with difficulties finding and retaining staff, increased wage demands, other supply chain issues and tax increases.
“Rising energy costs are creating huge burdens and challenge for the business and it’s vital that Scotland’s businesses are afforded some buffer to guard against energy prices that are hitting them hard.”