SCC welcomes £320million package of support for businesses in Scotland

Commenting on the Scottish Government’s announcement of an initial package of support to help businesses being affected by the COVID-19 outbreak, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:

“As we have seen the number of cases of Covid-19 rise in Scotland, we have heard calls from increasing numbers of businesses across the country for measures that will support them through these challenging times. Issues over cancelled bookings and orders, cashflow as well as disruption to supply chains and workforces are having severe impacts for businesses right across Scotland.

“Today, the Scottish Government have outlined an initial number of measures that will be welcomed by businesses – particularly in the most affected sectors such as retail, hospitality and tourism – following on from the measures introduced in the UK Budget earlier this week.

“The Support Grant for small businesses across Scotland is a positive intervention. The Scottish Government has allocated £80 million to provide grants of a minimum of £3,000 or more for businesses in sectors most affected by the Covid-19 outbreak. Our Chamber Network stands ready to work with the Government to ensure that the grant is as accessible as possible to all that need it. This is a useful tool that might need further expansion if the situation worsens.

“We welcome the extension of business rates reliefs on properties in the retail, hospitality and leisure sectors with rateable values of up to £69,000 – who will receive 75% worth of reliefs. This will be of particular benefit, as this enables significantly more firms in the most affected sectors to receive much needed rates relief. In light of the massive impact that COVID-19 is having upon these sectors, we would call upon the Scottish Government to consider reviewing how the business rates system can provide further support for firms in these sectors.

“Whilst these sectors are experiencing major reductions in bookings and orders, other sectors are also experiencing similar issues and there needs to be further consideration for support measures that can be tailored to the differing challenges and needs of all sectors and industries that provide jobs and growth in our economy.

“This is a positive initial response by the Scottish Government, but the situation needs to be reviewed on a daily basis to identify what additional support is required, particularly around how business can retain employees and the cost of businesses changing their operating models, for example to flexible working practises.

“We stand ready to work with our Chamber Network, our members and the Scottish & UK Governments to discuss and evaluate what further support will be required as the virus continues to develop and causes more economic pain for our businesses.’’

Providing additional comment on the Scottish Government’s announcement of an initial package of support to help businesses being affected by the COVID-19 outbreak, Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce said:

“As we have seen the number of cases of Covid-19 rise in Scotland, we have heard calls from increasing numbers of businesses across all of Scotland for measures that will support them through these challenging times. Issues over cancelled bookings, orders, cashflow, disruption to supply chains and the redesign of business models, are collectively having severe impacts across all sectors.

“This is a good starting position by the Scottish Government, particularly for the retailing, hospitality, and tourism sectors, which reflect measures introduced in other parts of the United Kingdom. The immediate expansion of business rates relief, and the reversal of planned increases, and in some cases deferring payments are all heading in the right direction. Business rates was already identified as a burden for business that needed to be eased. Now is the opportunity to sort the system to reduce these operating costs as we move forwards towards the expected peak period of the virus.

“Furthermore, the introduction of a support grant for all small businesses will be helpful. However, as we experience the growing loss of revenue, some of which will not be retrieved post-virus, this may need to be increased to provide additional support towards employment costs, and supporting our employees to be able to work from home safely and effectively when appropriate. Many businesses are now redesigning their operating models – this is an additional, unplanned cost for many and they will require further support for this.’’

Regular, reliable regional aviation links are critical to our region’s continued economic success.  This is a significant market failure which will have serious short, medium and long-term economic impacts.  We need and expect urgent action from Scottish Government to address these.

While there are particular external pressures on the regional aviation market at the current time, this is a situation which could and should have already been addressed.  We provided the Scottish Government with a contingency planning report in June of last year.  Had that report prompted an active response, we would be in a much stronger position to deal with the issues we are now facing.  Instead, a major operator from Wick John O’Groats Airport has pulled out of a route providing vital services to communities across Caithness, and we do not have a plan or commitment from Government to mitigate the impact.

As a Chamber, we are working closely with others and have completed a business case for improved series from Wick John O’Groats for consideration by Transport Scotland.   We have been proactive and planned for this type of scenario.  We need government to step up and match our work.

Our region succeeds when everyone who has a stake in its success works together.  We are particularly disappointed that Loganair have made this decision at a time when they are expanding elsewhere.  We have been developing our plans to protect and expand services alongside others.  Loganair were aware of these and we are also disappointed that they have chosen to make this announcement now, when we have a completed business case and are preparing to speak directly to the Scottish Government about support for future service provision.

Working with partners, we will be working hard in the coming days and weeks to get a commitment from Scottish Government to support new services and protect regional aviation links serving our part of the country.  When we have seen similar situations in other parts of Scotland, government has provided support. Caithness and North Sutherland deserves the same.

Speaking about the UK Budget delivered on 11 March 2020, Trudy Morris, Chief Executive of Caithness Chamber of Commerce, said:

“The Chancellor has today (11 March) announced a substantial package of measures to support individuals and businesses impacted by coronavirus. This is a welcome recognition of the unprecedented potential for economic impact that coronavirus presents. We particularly welcome the packages of support targeted at SMEs who are likely to be hardest hit.

“However, we would note that many of these measures highlight the economic issues already facing businesses across the UK. Of particular note, the 100% reduction for those eligible for Retail Discount highlights the negative impact that the outmoded non-domestic rates scheme has on the retail and hospitality businesses that are so important to our town centres.

“We recognise that non-domestic rates are a devolved matter in Scotland, and we strongly urge the Scottish Government to immediately follow suit on the announcements made by the Chancellor to ensure parity of support to Scottish businesses. We would also urge the Scottish Government to implement additional measures as necessary to support remote and rural communities like the North Highlands.

“We welcome the Chancellor’s announcement of additional funding to support businesses to start up and grow into new markets. In addition to the immediate risks of coronavirus, the ongoing issues of Brexit and the climate emergency will bring significant long-term challenges to business and support from Government will be required to address these.

“On infrastructure, of particular interest to businesses in the region is the Chancellor’s promise of £5bn to get gigabit-capable broadband into the hardest to reach places. As one of the UK’s most remote and rural mainland communities, we believe the North Highlands should be first in line to access this new funding.

“The Scottish Government is set to receive an additional £640m as a result of this Budget, and we would strongly urge the Scottish Government to use this to support investment in remote and rural communities. In particular, the Chamber is working hard to protect and develop air services in the region, and we will be looking to Scottish Government to match that ambition and to support our business case for improved air services from Wick John O’Groats Airport.”

Apprenticeships have vital role to play for local firms

Talent attraction and retention has long been an issue facing businesses in the North Highlands, and it is one which has come into focus in recent weeks due to the UK Government’s proposed new points-based system for immigration. Whatever your position on immigration policy, there is no denying that the debate around the issue has brought to light the real difficulties faced by businesses across the region in attracting and retaining staff.

This is an issue that the Chamber is actively working to address, both immediately through projects like Recruit North Highlands – which aims to attract skilled workers through the region – and in the longer term through the range of projects run through the Chamber-led Developing the Young Workforce (DYW) North Highlands initiative.

A key focus for the Chamber’s DYW team is on helping both young people and employers to take advantage of the full range of opportunities offered by the apprenticeship family. With the theme of last week’s Scottish Apprenticeship Week being “Talent Without Limits”, the team has been hard at work recently to promote the diverse range of apprenticeships available.

Starting with Foundation Apprenticeships, these offer a great opportunity for employers to shape the next generation and get early access to future talent. Providing senior school pupils with real life experience and helping them achieve industry-recognised qualifications is a fantastic way for businesses in the North Highlands to ensure that they will have access to the skills they need in future.

At the next level, Modern Apprenticeships can be an ideal way for employers to bring on new staff or upskill existing employees to help meet their skills gaps. With over 80 MA frameworks covering everything from accounting to youth work, Modern Apprenticeships can help employers of all types across the North Highlands build a sustainable and diverse workforce to help them meet future challenges and opportunities.

Finally, Graduate Apprenticeships offer an opportunity for employers with specific skills needs to develop and retain skilled employees while helping them gain a high level of academic and industry accreditation. With the North Highlands set to see developments in fast-developing areas such as aerospace and renewables over the coming years, a Graduate Apprenticeship could offer a unique opportunity for local employers to develop the skills they need to benefit from these opportunities.

Apprenticeships are certainly not the whole solution, but they have a major role to play in developing a sustainable and diverse workforce in remote and rural areas like the North Highlands. Even for employers not in a position to take on apprentices, engaging with young people more generally can bring a range of benefits and help to give a fresh perspective to the issues they face.

In addition to its work with the DYW initiative, the Chamber also manages the Caithness Business Fund, which can offer grants of up to £5,000 to help employers in Caithness and North Sutherland who are looking to take on an apprentice, so get in touch today to find out more about how we can help!

The Scottish Chambers of Commerce calls for key commitments from Government:

• Support businesses to transition to new trading arrangements post Brexit
• Reduce the cost of VAT on the installation of energy-saving materials such as wind and water turbines
• Support Heathrow Airport expansion and review Air Passenger Duty as part of wider review of regional connectivity
• A one-year moratorium on all policy measures that increase business costs
• Extend Annual Investment Allowance for a further two years
• Support businesses of all sizes & sectors to work towards achieving net zero targets to help tackle climate change
• Provide practical support for businesses to help mitigate the impact of the coronavirus

Dr Liz Cameron OBE, Chief Executive of the Scottish Chambers of Commerce, calls on the UK Government to commit to ‘levelling-up’ all parts of the UK ahead of the Chancellor of the Exchequer announcing the Budget:

“The General Election has had the effect of finally breaking the Brexit deadlock. However, this will only go so far when it comes to reassuring and incentivising businesses to grow and invest. Whilst there has been an opening in the clouds of uncertainty that have loomed over UK businesses for some time, there remains the challenges of a faltering global economy, a costly domestic business environment and the lack of clarity over future trading arrangements with the European Union. Add to this the even more recent threat of the Covid-19 virus and its potential impact on businesses – The UK Government must deliver a budget that helps instil confidence and utilises the potential of business communities across Scotland and the UK.

“Sluggish growth in the Scottish economy – slower compared to the rest of the UK – continues to limit the country’s significant economic and international potential. Key issues around demography, productivity and the lack of certainty over future trading arrangements all continue to present current and future challenges for businesses across the country.

“The UK Budget must take decisive action to boost growth, productivity and confidence across the whole of the UK, including incentives to release investment and ease the cost of doing business.”

Below, the SCC Network has set out what Scottish businesses need from the upcoming budget:

On International Trade, Liz Cameron said:

“The UK Government must step up in supporting businesses to transition to new trading arrangements as we carve out a new relationship with our friends and partners in the EU. It is essential to avoid unnecessary political posturing which may impact on reaching a trade deal that works for Scottish business and our economy.

“The UK government needs to invest significant resources to support HMRC and the private sector to build the enhanced customs and international trade expertise required to ensure that goods continue to move smoothly across borders.’’

On Climate Change, Liz Cameron said:

“The upcoming COP26 conference in Glasgow is a chance for Scotland and the UK to lead on the global stage when it comes to reducing our carbon emissions. Placing the Scottish and UK economies in a position to adapt to a changing energy world and to support net zero targets is a priority for business communities.

“Action must be taken to ensure that businesses have the policy framework and government support to enable a just transition to net zero through investment in the necessary infrastructure, skills and technology. This is particularly critical for Scotland’s place as the hub of the UK’s oil and gas sector, an industry which will play a crucial role in enabling the just transition to net-zero.

“The UK Government must take the lead, together with business communities across the UK, in developing a clear UK energy strategy that supports Scotland to reach net-zero by 2045 and the UK to reach it by 2050. One clear way to do this is to reduce the cost of ‘energy-saving materials’ – such as reducing the cost of VAT on the installation of all wind and water turbines.’’

“In addition, we would ask the UK Government to review Transmission Network Use of System (TNUoS) charges on onshore and offshore energy developers in Scotland. We believe that TNUoS charges must be reduced or overhauled in order to realise Scotland’s full potential when it comes to offshore wind and not hinder the development of renewable energy in Scotland.’’

On Connectivity, Liz Cameron said:

“We support a just transition that supports businesses with the associated costs of addressing climate change targets. However, any prosperous economy also requires its infrastructure to keep up with demand.

“If the UK Government is truly invested in making Scotland and the UK more global to support its full economic potential after Brexit, it must support Heathrow Airport in its ambitions to expand capacity to demonstrate that we are open for business and also mindful of the environmental impacts.

“Whilst we welcome the Government review of regional connectivity that has been announced, we would urge – in light of the Flybe collapse – that review be progressed quickly and also be part of a wider reform process that involves discussions between industry and government about a more sweeping overhaul of Air Passenger Duty as well as creating a more suitable environment for regional air travel across Scotland and the UK.’’

On Business costs and investment, Liz Cameron said:

“We urge the UK Government to commit to a one-year moratorium on all policy measures that increase business costs, including no new business taxes or added regulatory burdens, excluding evidence-based changes to the National Living Wage.

“We also ask that the UK Government extend the current £1 million Annual Investment Allowance, which is due to expire on 31^st December 2020, for a further two years and at the higher limits for longer. This will support investment and productivity for Scottish businesses to be at their innovative best.’’

“In light of recent developments, we call upon the UK Government to implement practical measures that can quickly support businesses impacted by the effects of the coronavirus, for example delaying or reducing payments on VAT to assist SME’s with cash flow and opening up public procurement contract opportunities.”

• The UK Government Coronavirus: Action Plan published today, that lays out the UKGOV’s plans to contain and mitigate the effects of the virus.
• The Scottish Government statement on its response to the first confirmed case in Scotland.
• The latest update from the UK Government with up-to-date advice and information for the public.
• UK Government advice for employers and businesses.
• The latest travel advice to the countries, cities & regions the SCC Network is looking to take trade missions to and from:
  • China
  • Italy
  • Dublin / Ireland
  • Philadelphia
  • Spain
  • Dubai
  • Turin
  • Nova Scotia
  • Munich
  • Paris
  • Canada

It’s been another busy month for us and we’re thrilled to have welcomed another two businesses to enjoy the benefits of being in our Chamber network.

• The Ulbster Arms Hotel is situated in Halkirk, on the banks of the river Thurso. It boasts comfortable rooms and lodges and they’re currently refurbishing the dining room ahead of its sold out grand reopening in March.
• Miller Coffee is a new business with a passion for supplying quality coffee to shops and coffee shops around the UK.

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.

Caithness Chamber of Commerce is delighted to be working with Zero Waste Scotland to deliver three pilot projects in Caithness throughout 2020. The Chamber, working in partnership with Thurso Community Development Trust, joins more than a dozen other organisations throughout Scotland in delivering these pilots as part of the “Ditching Disposables” project and will be the only delivery partner in the Highlands & Islands.

Focusing on reducing consumption of single-use items, the pilot projects will consist of:

• A deposit return scheme for reusable cups in Thurso and Wick town centre
• Working with two major events to reduce use of disposable items
• Single-use reduction at a large employer in the area

In addition to the pilot projects, the Chamber will also be seeking to work with its members to assist them in delivering their own projects. It will also be undertaking a programme of community engagement to help raise awareness of the concerns surrounding disposable items, recycling, and the wider issues of sustainability.

The programme is supported by the Scottish Government and the European Regional Development Fund (ERDF).

Trudy Morris, Chief Executive of Caithness Chamber of Commerce, said:

“This is a real win for both the Chamber and the North Highlands. As the only delivery partner in the Highlands & Islands we have a unique opportunity to help demonstrate the unique challenges and opportunities that this region faces.

“Sustainability is a key policy priority for Scottish Government and it is clear that reducing consumption of single-use items is likely to be enforced through legislation in the years to come. By providing an evidence base for how these sorts of projects work in a remote and rural area, we can help ensure that any future policies take the needs of communities like the North Highlands into account.

“As a Chamber and as a business, we also recognise that we have a responsibility to look at how we and our members can build a more sustainable future for the region. This will involve looking not just at how we move to more environmentally friendly products, but at changing our attitude away from disposability and focusing more strongly on reduction and reuse.”

Catherine Macleod, Chair of Venture North (organisers of the Taste North festival) said:

“Taste North is the flagship food and drink event in the North Highlands, and the event has always had a focus on local production and responsible consumption. Looking at how we can work to reduce our consumption of single-use items is a great fit with our overall mission and we look forward to working with the Chamber on this exciting project.”

Zero Waste Scotland chief executive, Iain Gulland, said:

“We know single-use items are blighting communities across Scotland and it is something we are determined to tackle. Some of these are only used for a matter of minutes yet can hang around our environment for years.

“Four fifths of our carbon footprint as a nation comes from the products and materials we consume. That’s a huge proportion, and single-use items are an entirely unnecessary part of that. Curbing our consumption habit is vital if we want to have a real impact on the climate emergency.”

Ditching Disposables is part of Zero Waste Scotland’s Resource Efficient Circular Economy Accelerator Programme, which will invest £73m in circular economy and resource efficiency projects, thanks to support from the European Regional Development Fund (ERDF).”

Bev Durrand, of Caffé Cardosi in Thurso, said:

“We are very pleased to be involved with this exciting project. Consumption of single-use items is a real problem facing our society and we look forward to working with the Chamber, the Trust and other businesses in Wick and Thurso to try and address this.”