Commenting on the latest review of the US’ tariffs list on EU & UK goods, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:
“The decision by United States Trade Representative (USTR) Robert Lighthizer to remove extra tariffs imposed on Scottish shortbread and to avoid adding more trade taxes on our gin and blended whisky exports is a ray of light through the storm of this damaging trade dispute.
“It is now more important than ever that the UK International Trade Secretary Liz Truss MP redoubles her efforts to have further tariffs that have been imposed on Scotch whisky and cashmere knitwear lifted. Now is the time to prove our mettle as a global trading nation by seeking a bilateral UK/US solution.’’
Commenting on UK GDP figures for Q2 2020 published today by the ONS, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:
“With restrictions steadily easing, the second quarter is likely to prove to be the low point for the UK economy. However, the prospect of a swift ‘V-shaped’ recovery remains remote as the recent gains in output may fade over the coming months as the economic damage caused by the pandemic increasingly weighs on activity, particularly as the government support measures wind down.
“Against this backdrop, bold action is needed to immediately inject confidence back into the UK economy. This should include supporting businesses to retain staff through a cut in employer national insurance contributions and targeted support to help businesses placed under local lockdowns.”
Commenting on Labour Market Statistics for August 2020 published today (11th August) by the ONS, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:
“These figures continue to show how the furlough scheme has prevented severe job losses during the pandemic. But the rise in unemployment points to the direction of travel as the restrictions imposed to prevent the spread of the virus start to cause real economic damage. It also points to the risks to livelihoods when the jobs support falls off a cliff edge in October.
“To help businesses recruit and retain staff, more needs to be done to reduce the overall cost of employment and prevent substantial redundancies. This could include significant expansion of the Employment Allowance and a cut in employer National Insurance Contributions.”
Responding to the announcement today (5th August) by the Scottish Government that lockdown restrictions are to be reimposed in Aberdeen after a recent cluster of COVID-19 cases, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:
“This will be very disappointing news for many businesses in Aberdeen who have just opened back up over the past few weeks and who were beginning to return to some form of normality.
“However, businesses will accept that it is imperative that local restrictions must come into force if we are to prevent any wider spread of cases from Aberdeen to other parts of Scotland. The health of our communities must come first.
“As outlined by the First Minister, we would highlight that businesses will be able to refurlough their staff should they need to limit the risk to jobs and livelihoods.
“Further targeted government support will be required for all businesses affected, specifically those in indoor and outdoor hospitality who have been ordered to close tonight in Aberdeen.
“It is also vital that there is as clear communications and guidance from the government and local authority as possible. Collaboration and cooperation between business, government and agencies will be critical to provide clarity and provide support to help businesses mitigate further disruption.”
With lockdown easing and many sectors of our economy reopening in some fashion, the past few weeks have brought both welcome relief and new challenges to businesses in the north Highlands. The easing of restrictions and a gradual return to something approaching normality have also afforded us a little space to start looking beyond the immediate challenges of the past few months and to think about what the future might hold for the region.
Change is certainly in the air, with the recent announcement by the Nuclear Decommissioning Authority (NDA) that it is bringing operations at the Dounreay site back in under its direct oversight. It is too early to say what the opportunities of this might be for the region, but the Chamber will be engaging closely with the NDA over the coming months to ensure that the needs and concerns of our local supply chain are considered as part of the process.
In the longer term, we also need to be aware that the Scottish Government’s continued commitment to a net-zero carbon economy will mean significant changes for all of us. Every aspect of life in the north Highlands, from employment to education, transport to tourism, will be affected by this process.
As with any change, this has real potential to bring both significant benefits and significant challenges for businesses in the region. Most obviously in terms of benefits are the proposed investments in renewable energy, such as the recently opened ScotWind offshore wind leasing round. With access to a skilled local supply chain and a strong transport infrastructure, as well as a proven track record in the sector, the north Highlands is well positioned to benefit from these developments.
An obvious area where we will face challenges with the move to net-zero carbon is in transport. It is important that work is done now to understand and begin to address the challenges that will face rural regions, as the strategies which will work for dense, urban environments will not work in areas like the north Highlands.
The Scottish Government’s commitment to a net-zero carbon economy will mean significant changes for all of us.
As a Chamber, we have already begun some of this work with our business case for a public service obligation from Wick John O’Groats Airport, which explicitly lays out the requirement not just for viable air services to and from the region but for a clear forward plan for net-zero aviation.
This is an area where, with the right support from government, we have an opportunity to take a challenge and develop it into an opportunity for the region. There is clear worldwide demand for low and zero-carbon aviation, and by investing and supporting innovation now we can make the north Highlands a world leader in this area.
Innovation in low-carbon aviation is already happening elsewhere in the north of Scotland, with Orkney set to host a trial flight of a hydrogen-electric aircraft later this year. With the north Highlands set to be generating a surfeit of renewable energy in the next decade, there is a clear opportunity here for the region to lead in production of green hydrogen using cheap, clean electricity. Not only would this make low-carbon aviation a real possibility in the near future, it could bring significant additional investment and benefit into the region.
It is clear that the future, both immediately and in the longer term, holds challenges for businesses in the north Highlands. As a Chamber, we will continue to work closely with our members to understand their hopes and concerns, and work with local partners to lobby for investment in innovative solutions that will ensure a bright future for the region.
Responding to the announcement today (29th July) by Cabinet Secretary Kate Forbes MSP of two new funding packages to support the tourism & hospitality sector in Scotland, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:
“This will be very much welcomed by eligible hotels and self-caterers across Scotland who have faced struggles to access support funds previously. This new support will help to secure some jobs in the sector that have come under serious threat of being lost, for the time being.
“However, while this support will be appreciated by these businesses, concerns remain that ongoing costs coupled with low demand continue to place tourism and hospitality jobs at severe risk. Getting those sectors who support our bars, cafes and restaurants back to work in the safe environments they have created is critical if we are to save jobs and livelihoods.
“Further support and reliefs will be required in the future in order to secure the long term viability of the sector. We will continue to make this case and work alongside both the Scottish & UK Governments.’’
Responding to the £100 million package of further employment support, as outlined by Economy Secretary Fiona Hyslop MSP today, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:
“This is a very welcome move by the Scottish Government and comes at a critical time as Scotland comes out of lockdown and we build the economy back up.
“The Scottish Chamber Network has consistently called for such measures such as a job guarantee for young people and a new national retraining scheme and we are pleased to see this come into fruition. This intervention will help to protect jobs, particularly as support schemes such as the jobs retention scheme taper off in the coming months.
“We will play an active role in working with the Scottish Government in partnership to ensure this support is targeted and works for both employers and employees alike.’’
Through the second round of its COVID-19 support scheme, made possible thanks to a generous contribution of £100,000 from the Nuclear Decommissioning Authority (NDA), the Caithness Business Fund has been able to support additional businesses across the North Highlands with their plans for reopening.
All successful applicants to the second round have now had their grants distributed, helping to enable activities including the development of risk assessments and safe working procedures, the purchase of PPE and cleaning supplies, and modifications to premises to enable a safe return to operations as lockdown restrictions ease.
John McNamara, Head of Stakeholder Relations at the NDA said:
“We know local businesses are facing huge challenges and additional costs in adapting to new guidelines aimed at keeping their staff and customers safe, as they look to re-open.
“We are delighted to increase support to them through the Caithness Business Fund, and to re-affirm the NDA’s commitment to play a part in the Highland community’s efforts in recovery from the current crisis.”
Several successful applicants are highlighted below, showcasing the range of businesses and activities supported by the Fund.
Murray Lamont, Bin Ends, said:
“The COVID-19 pandemic has had a significant impact on our business, as it has many others in the retail sector. The support from the Caithness Business Fund will help us redesign and refurbish the shop to meet the changing needs of the market and ensure that we can offer our customers a safe and appealing buying experience.”
Joanna Mackenzie, Clean Bees, said:
“We are currently looking at how we can phase back to work following the effects of COVID-19 on our business, and are looking to diversify and offer additional services to businesses and individuals alike. Being able to offer additional safety measures and processes will be vital in months and years to come.
“The support from the Fund will enable us to invest in additional equipment and training to help businesses in the areas reopen, and to ensure that we can offer a service which meets their enhanced cleaning needs in future.”
A spokesperson, JPL Shellfish, said:
“As a food business, ensuring the safety and quality of our product has always been of paramount importance. COVID-19 has brought with it many additional procedures and requirements for PPE so that we can continue to offer our customers a high-quality, safe product at this difficult time. This has resulted in a significant additional expense to the business, and the support from the Caithness Business Fund will go a long way to helping us meet those costs.”
Charlotte Mountford, Lyth Arts Centre, said:
“This has been a uniquely challenging time for the arts sector across the UK, and we have had to suspend our programme of performances, events and workshops for an indefinite length of time. Recent announcements of support for the sector from Government have been welcome, but it will take time for this to be fully realised.
“In order to safely restart our public facing activity, we need to create additional space across the site to enable social distancing. The support from the Caithness Business Fund will enable us to purchase a secure storage container, allowing us to free up space currently used to store equipment and enable a safe return for our staff and visitors.”
Image credit to SDM Photography
Teresa Wymer, Stacks Coffee House and Bistro, said:
“As an independent business, we are proud that this is our first ever funding application. Although we managed to trade on a very small scale in the later weeks, lockdown has cut a large chunk out of our vital summer season, much like others in hospitality. The grant we received from Caithness Business Fund was helpful for purchasing inter-table screens for the Bistro and other safety additions. All keeping customers safe while they enjoy their experience. A little goes a long way at the moment!
We look forward to welcoming our customers back to Stacks from the 15th…even if things are a little different!”
David Hook, Tongue Hotel, said:
“The necessity of locking down our business over part of the tourist season – usually our busiest time of year – has been challenging. It is fantastic that we are able to open again to visitors from mid-July, and the support provided by the Caithness Business Fund will be instrumental in enabling us to purchase the equipment and amenities we need to safely welcome visitors back to the beautiful North Highlands.”
Following two successful funding rounds, the first enabled by a contribution from Dounreay Site Restoration Ltd and the second by a contribution from the NDA, the Fund has been able to support 125 businesses throughout the North Highlands.
Commenting on the Scottish Government announcing today (9th July) that the Land and Buildings Transaction Tax threshold will be increased to £250,000, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:
“We welcome the Finance Secretary Kate Forbes’ announcement that the threshold for the application of LBTT will rise to £250,000 which means that eight out of 10 transactions won’t be charged.
“This will not only boost the housing market it will also support the construction industry, both of which are essential to addressing Scotland’s chronic housing shortage.
“We ask that this should be urgently fast tracked to prevent distortion in the marketplace.”