THE recent announcement to extend the lockdown for a further three weeks is understandable and should remain in place until we are all confident that the spread of Covid-19 is reducing, our ability to test is extended, and the complete protection of those on the front line is ensured, along with all our employees who are continuing to supply products and services.

We all support this position, with the majority of businesses not only implementing the guidelines, but many going much further. 

Like most people who are working from home, I seem to be spending much of my time on conference calls and I have become a bit of an “expert” using many of the available technological platforms. My calls have been with business owners and the leaders of chambers of commerce across Scotland, UK and Europe. 

What has emerged from these engagements is a consensus that the planning and focus on the health crisis must now run parallel to planning how we can ease our lockdown when the time is right to do so. 

We must do this in respect of the science. This includes looking at how our global economic counterparts are now starting to open up their economies. This will provide the vital evidence that not only are we saving lives and protecting the NHS, but we are also ensuring the economic future of our country and our livelihoods. 

Austria, the Czech Republic, Denmark, France and Norway have all announced intentions to ease restrictions. Even hard-hit Italy and Spain are looking for the way forward. 

Flattening of the transmission of the virus supports evidence that what we have been doing has been working and now it is time to consider how we can ease restrictions while maintaining required safety measures and ensuring there’s no resurgence of the virus.

Businesses across Scotland and the wider UK providing essential services have already demonstrated how to work safely while reducing transmission. We have seen employers go to great lengths to implement social distancing amongst staff and customers.

If you have been to the supermarket, you have seen how cadres of staff have adopted requirements on social distancing and protection. Critical sectors including logistics food and drink, energy, manufacturing have also made great strides. The Scottish Chambers of Commerce looks forward to engaging with the newly announced economic recovery advisory group to highlight this.

Unfortunately, many Scottish businesses have faced a catastrophic decline in cashflow and revenue stream with many businesses being forced to let staff go. This is against a background of unprecedented support provided by both the Scottish and UK Government.

In a recent survey of 200 companies in Scotland undertaken by SCC, a third of respondents said their incomes have been brought to near zero, while the majority of businesses (68%) have seen their income slashed in half or more. 

A significant 40% of businesses said they expect they will run out of cash in three months’ time. A further 34% of employers are planning to let staff go, while the employees of a further 34% of businesses hang in the balance, as employers decide what they do next.

The current range of support packages on offer for business is welcome for this initial lockdown period. But evidence has shown that the mitigation efforts are not perfect and can’t reach all corners of economic activity. Meanwhile there are also risks to unfettered government spending. That’s why we must get the wheels of the economy moving again. 

The health of our people is paramount, but the health of the economy – which underpins our wellbeing in so many ways – can only be achieved if we can start getting back to work in a controlled manner with a clear focus, being directed by business and government working together. 

Liz Cameron is the chief executive of Scottish Chambers of Commerce

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