Businesses need to be fully reimbursed for losses caused by Covid restrictions – or the measures must be reversed “immediately”, an industry leader has demanded.
Without either payment or the ability to re-open, companies will be forced to put tens of thousands of jobs “unnecessarily” at risk, Russell Borthwick, chief executive of Aberdeen and Grampian Chamber of Commerce (AGCC) added.
In a strongly-worded article published online on the Press and Journal, Mr Borthwick criticised what he describes as the Scottish Government’s “fearmongering” and “chaotic” management of Covid-19, which has caused many businesses to be “effectively shut down with no visibility of what the future holds”.
Multiply the millions lost across the region
He said he has spoken to a few chamber members who together had lost revenues of £3.5 million since restrictions have been brought back in the wake of the fast-spreading Omicron variant.
“Multiply that up across the region and nation and you’ll see that the available support falls woefully short,” he said.
This is no more than a drop in the ocean compared with huge losses being incurred by companies as a direct result of the chaotic way our government is handling the situation.
And while the Scottish Government this week announced a further £55m to support taxis, hairdressers, and sports and tourism operators in addition to £375m previously pledged, Mr Borthwick said: “This is no more than a drop in the ocean compared with huge losses being incurred by companies as a direct result of the chaotic way our government is handling the situation.”
On Wednesday, First Minister Nicola Sturgeon announced an easing of self-isolation rules in Scotland to seven days, although limits on large gatherings and mandatory table service in hospitality venues are expected to remain in force throughout January.
Military personnel have also been deployed to support NHS Grampian with a total of 38 troops now starting work across the north-east to assist the health board.
However, some argue the variant is less harmful than previous strains of Covid and so the need for restrictions is reduced.
Mr Borthwick pointed to less stringent restrictions in England and said he has asked the Scottish government to provide “evidence” on the effects of Omicron to maintain the rationale for continued “draconian” rules.
He said: “So far, despite repeated requests, the Scottish Government has been unable to share sufficient evidence on Omicron illness that would justify the current draconian measures being enforced on the businesses.”
NHS pressure happens every year
The AGCC boss has previously argued that the government should be focused on increasing NHS Scotland capacity, although his claim that “illness and pressure on the NHS happens every year” was robustly rejected by Ms Sturgeon when his views were put to her at a recent press conference.
However, Mr Borthwick stood by his criticisms.
He wrote: “I repeat again that it is not the role of businesses to pay the price for public health interventions and they are not to blame for the fact that NHS capacity is stretched, which has been an annual narrative for the last decade or more.
“Public Health Scotland data tells us that average available staffed beds in hospitals have declined by 1,358 between 2011-12 and 2020-21.
“And, of course, the emergency NHS Louisa Jordan bed provision was removed months ago – a masterpiece of forward planning.”
He added that the rising number of companies expected to fail as a result of lost trade “renders the billions of pounds spent on keeping businesses alive through the last 22 months wasted”.
He summarised: “Over the next week the choice for our leaders is clear.
“Either put in place a scheme that provides full reparation for lost income and/or increased costs to companies affected by the stricter measures introduced in December or announce immediately that all restrictions are removed.
“Not doing so threatens the very survival of many businesses and unnecessarily puts at risk tens of thousands of jobs.”
A Scottish Government spokesman said ministers were “all too aware” of the impact restrictions have but that the coming weeks were set to be “extremely challenging”.
He said: “This will be the most difficult winter in the history of the NHS and recent Public Health Scotland analysis confirms coronavirus is continuing to increase pressure on the service.
“The next few weeks are going to be extremely challenging, with the risk of major incidents at health trusts and businesses and public sector services under severe strain due to an increased number of staff off sick or isolating.
“We are all too aware of the impact that Covid-19 has had – and continues to have – on business and the Scottish economy. That is why, to date, we have spent almost half a billion pounds more in support of businesses than the funding we received from the UK Government for that purpose.
“Since the start of the pandemic, businesses have benefited from more than £4.4 billion in support from the Scottish Government.”
