Commenting on the Scottish Government’s decision to extend the lockdown in Scotland by a further three weeks, Dr Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce said:
“As with so many of us, businesses in Scotland are desperate to know when they can resume operations and how to do so safely.
“And while they want to see economic recovery, it must not be at the cost of a second wave of the virus causing a further clampdown. Businesses in Scotland are playing their part keeping employees and customers safe.
“We will continue to urge the Scottish and UK government to take a sensible and pragmatic approach to easing restrictions and both Governments must work hand in glove with business in a meaningful way to achieve this.”
It’s safe to say that recent weeks have proven uniquely challenging for Caithness Chamber of Commerce and the businesses that we represent. Remote and rural areas like the North Highlands already face a set of challenges unlike those in central Scotland, and the lockdown necessitated by the global COVID-19 pandemic has both heightened those existing challenges and brought its own set of difficulties.
Since the start of this crisis, the Chamber team has been hard at work doing everything we can to support our members, and we wanted to take this opportunity to highlight some of our efforts in our region to get through this difficult time.
Membership Support and Guidance
Chamber membership has always granted businesses access to a variety of useful services, and many of these have proven of particular value to our members over the past few weeks. Of particular note is the ChamberHR service provided by Quest, which gives members access to a 24/7 HR advice line and document library.
With many businesses trying to understand the complexities and legal niceties of furloughing staff, and many more faced with difficult decisions to make in the coming weeks and months, access to professional HR advice has been invaluable in helping many of our businesses navigate the current landscape.
As a small business ourselves, we’re also well aware that all of our members will be looking closely at their cashflow at this difficult time. As a result, we decided to offer all of our existing members an additional three months of free membership, ensuring that they retained access to valuable services without having to worry about another bill to pay.
We have also extended a three-month “time to pay” offer to any new members joining us in April and May, meaning that new members can immediately access all the benefits of Chamber membership while deferring payment until later in the year.
Part of the Chamber’s role in supporting local businesses has always been to summarise and distribute information of interest to our members. With so much information and so many different support schemes announced, one of the key services to our members over the past weeks has been providing quick and easy access to all the latest information they need to know.
Lobbying
A key service the Chamber has always undertaken on behalf of its members is lobbying at all levels of Government to ensure that the voice of business in the North Highlands is heard. This has taken on a new importance and urgency in the past weeks, and the Chamber has been hard at work to ensure that support for businesses has been tailored to the needs of our members.
While the initial large commitments by both UK and Scottish Governments in support of business were welcome, it quickly became clear that there were significant gaps affecting the ability of businesses in the North Highlands to access this.
Working through the Scottish Chambers network, we were able to quickly bring the concerns of our members to the highest levels of Government. While there are still some businesses which are not
eligible for support, many of the key gaps affecting small businesses – support for businesses with multiple premises and for the recently self-employed, for example – have quickly been addressed.
We have also been able to act to remove barriers to our members offering support in the local community. For example, working through Scottish Chambers we were able to enable a local distillery to quickly secure necessary licenses to purchase denatured alcohol and manufacture hand sanitiser for distribution to the local community.
Reset, Restart, Recover
In addition to supporting our members through the crisis, the Chamber also has a key role to play in what comes next. With UK and Scottish Governments both looking at how they can start to ease restrictions and restart the economy, it is important that they continue to listen to and support businesses.
The Chamber will continue to work closely with our members as Government plans progress, to ensure that Government is aware of and understands their concerns and needs and provides the appropriate support.
It is also important that we don’t lose sight of the long-term goals we have for this region. Looking to the future, the Chamber will continue to lobby for vital projects such as a Public Service Obligation from Wick John O’Groats Airport, ensuring that businesses have access to the infrastructure they need to enable the economic recovery of the North Highlands.
The Scottish Chambers of Commerce policy platform has focused on three ‘Policy Pillars’ these are Protecting Jobs, Getting Cash to Businesses Quickly and Economic Recovery. Scottish Chambers have created a handy ‘You Asked We Delivered’ Document which highlights what we and the Chamber network have done to support members on the three policy pillars as well as its dialogue with decision makers. Read the document here.
Scottish businesses are facing a catastrophic decline in cashflow due to the impact of the Covid-19 pandemic and are coming up against barriers in government support, a new survey has found.
A snap survey of just over 350 companies in Scotland undertaken by the Scottish Chambers of Commerce (SCC) has found that without access to support, 48% of these companies expect they will run out of cash in three months’ time which is how long stringent measures to mitigate the spread of
the virus are expected to be in place. Of these, 13% say they have less than a month before cash runs out.
Over three-fifths of firms (64%) who responded believe that there are gaps in the current business support measures offered by government. Half of firms surveyed have already furloughed – or intend to – furlough at least half of their workforce.
Commenting on the results, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:
“Both the UK and Scottish Government have moved quickly to staunch this catastrophic decline but what businesses are saying is it’s still not enough. If we are to prevent the Scottish economy from being damaged beyond recognition, businesses need cash in the bank now to be fit for when the country is able to start returning to day to day activities.
“Businesses are also looking for an economic recovery plan in Scotland that avoids a restart-stop scenario. We need clarity so we can plan ahead while still protecting the health of people across Scotland. Many are also concerned that Scotland’s recovery schedule doesn’t lag too far behind that in England, with the potential of creating a competitive disadvantage in Scotland.
“As we begin to look towards what the economic recovery phase will look like and what it will mean for businesses and jobs across the country, we must always remember the economy is about the people within it who will power us out of this crisis.
“Businesses are playing their part in saving lives and protecting the NHS, but we must also secure the economic future of our country and the livelihoods of those who work within it.’’
- Cashflow: Almost half of companies (48%) say current cashflow levels will only cover them for a period of up to or less than 3 months
- Barriers to support: Over three-fifths of firms (64%) believe that there are gaps in the current business support measures offered by government
- Lack of uptake on the CBILS: Only 17% of respondents have used it or are planning to use it
- High uptake on the CJRS: Over half of responses have already furloughed – or intend to furlough at least half of their workforce
Click here to view the summary findings
It’s been another strange month, not just for us but for all our members and businesses nationwide. We continue to do our very best for our members as things progress in these unprecedented times and are thrilled to welcome two new members to our member group this month.
Vitality offers wellbeing coaching, yoga & mindfulness, reiki, retreats, chat, pug hugs and whatever else you need to feel good about your life. Sessions can be one-to-one, group or bespoke packages for organisations. Given the current situation, business owner, Donna Booth has adapted the Vitality offering so that as many services as possible are available online. Free morning meditation and stress management chats can be viewed on their Facebook page while wellbeing coaching sessions and yoga classes are now available online. See the Vitality Retreat website for the full list of services.
The North West Highlands Geopark is a community company limited by guarantee and a charity in Scotland. The board comprises 7 community directors, one from each of the community councils within the Geopark who work alongside the other office bearers, directors and staff. The mission is to be a thriving and sustainable rural economy capitalising on the assets and people of the Geopark in partnership with local government, relevant agencies and local businesses.
Last month, our Chief Executive, Trudy Morris announced a 3-month Extension of Chamber Membership and offered a payment deferral option to any new members who join before the end of May. Learn more about this offer here.
To learn about how Chamber membership could benefit your business, see the Membership benefits page or get in touch with Fiona Levack, Business Development Manager to arrange an informal chat. The Chamber offers advice and support to businesses of all sizes, at all stages and in all sectors and we would be thrilled to hear from you.
In addition to chamber membership, many of our funded projects offer support and guidance to businesses in a range of ways. See the list of options, here.
Did you know that we offer a membership referral scheme? If you refer a business who joins the chamber, you could benefit from £50 off your next renewal. Read more here.
It’s safe to say that the last few weeks have been a uniquely challenging time for the Chamber and the businesses across the North Highlands that we represent. Normally at this time of year we would be absorbing and preparing for any changes announced in the UK and Scottish Budgets, making our projections for the year ahead, and relishing the warmer days and lighter nights that come with Spring.
Instead, many of us find ourselves in a kind of limbo, unable to carry on with business as normal, and with no clear picture of what the future might look like.
This is in no small part down to the continued uncertainty surrounding many of the support schemes announced by Government over the past few weeks. While it has been welcome to see the first tranche of small business grants handed out by Highland Council recently, much of the other support promised by UK and Scottish Government has yet to materialise fully or has turned out to come with unpalatable conditions attached.
The major factor here is the Coronavirus Job Retention Scheme and the length of time it has taken to get this up and running. While it is good that HMRC is now processing applications for the scheme, many businesses have remained liable for their wages bill while operating income has shrunk to little or nothing. It also remains to be seen how quickly grant claims will be processed now that the scheme is open.
Coupled with the difficulties businesses have reported so far in accessing the Coronavirus Business Interruption Loan Scheme, this has left many businesses in an untenable position. As the age-old saying goes, “cash is king”, and many businesses simply do not have the cash reserves to keep paying staff indefinitely.
The final blow for many will be the seemingly complete refusal of the insurance industry to cover claims for business interruption. It is galling that businesses have paid often significant sums of money over the years to their insurers only to discover that their claims are being rejected when they most need support.
It has been good to see both UK and Scottish Governments listening to the concerns of businesses and changing their support mechanisms to address these. This is in part due to the work that the Chamber network across Scotland has done in gathering these concerns and bringing them to the attention of decision-makers.
Government and public agencies are now starting to talk about the reset, restart and recovery of the economy post-crisis, which is positive news for businesses. Chambers will play a crucial role in this phase, helping to collate intelligence from businesses and ensure that Government support is directed in a way which best meets their needs.
It has been hugely heartening over the past month to see how businesses across the region have sprung into action to help their local communities, from providing PPE to frontline workers to helping deliver essentials to the most vulnerable in our society.
This crisis has also shown us more than ever that we are part of a network and community of businesses across Scotland. The Chamber and colleagues in the Scottish Chambers network will continue to work tirelessly to bring business concerns to the highest levels of Government and to ensure that as much as possible is being done to support businesses across the whole country.
We may not know what the future holds for us, but with a little extra support from Government, businesses in the North Highlands will stand together to meet whatever challenges it brings.
Commenting on the UK Government unveiling financial support for start-ups affected by Covid-19, Dr Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce, said:
“The entrepreneurial pedigree of Scotland and the UK’s start up community has helped build up a world-renowned international reputation for creativity and innovation.
“There were gaps in the current major support measures that meant that these newer companies were not able to access the existing Covid-19 business support schemes. This new package will enable these fast-growing and dynamic businesses to continue trading with more ease of mind, at the very forefront of our most cutting-edge sectors and technologies.
“The most important thing now for firms is ease and speed of access to this support. This funding must be made available as soon as possible, with as few administrative hurdles as possible, in order to safeguard against the potential of firms folding in the time it takes for this support to be accessible.’’
Commenting on the UK Chancellor’s announcement today, that the Coronavirus Job Retention Scheme will be extended by one month until the end of June, Dr Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce said:
“The Scottish Chamber Network called for – and welcomes – this extension of the Coronavirus Job Retention Scheme, which provides a further level of reassurance to employers so they can continue to maintain jobs in these extraordinary times.
“However, it is clear that the furlough programme cannot be sustainable in the longer term. Business also needs to be sure there will be work to do when the employees come back, for example. This is why we also have called for clarity on a plan for recovery alongside measures which continue to prevent the spread of the virus and protect health.”
Commenting on the additional £220m funding for businesses announced by the Cabinet Secretary for Finance, Kate Forbes MSP, Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce, said:
“We raised directly with Scottish Ministers the gaping anomaly between the financial support available for businesses with more than one property in Scotland compared to businesses in the rest of the UK. Today’s announcement is a positive step in the right direction which will give much-needed financial relief to many small businesses.
“We are also pleased to hear the Scottish Government is providing support to newly self-employed people not eligible for other schemes. Questions still remain on the criteria and speed of delivery and Ministers must provide businesses with reassurance that cash support will be released quickly. The harsh reality of this situation means any delays in support is the difference between a business going under or surviving.”