Queen thanks generous businesses during Covid-19

Her words came as a leading Scottish solicitor in construction law issued a stark warning about the construction industry, saying it was facing major upheaval due to spiralling costs because of social distancing on sites. He said there could be a 'domino effect of insolvencies' and called on the Scottish Government to intervene.

The Queen spoke of her "great pride" in the contribution the British Chambers of Commerce (BCC) and its members are making to "champion trade and rebuild communities".

The head of state's personal message of support for UK businesses was sent to the BCC in the week many non-essential shops reopened south of the Border as the coronavirus lockdown restrictions were eased.

Baroness Ruby McGregor-Smith, BCC's president, welcomed the Queen's message and said it would be a "huge morale boost" to business communities during the pandemic.

The Queen said in her message: "As many organisations around the country are reopening, I send my warmest best wishes and support to business communities throughout the United Kingdom, Commonwealth and across the world.

"At a time of great difficulty for many, it is heart-warming to see the civic response and generosity of so many businesses, small and large, to the challenges posed, whether supporting the health sector or vulnerable communities.

"As patron of the British Chambers of Commerce, it gives me great pride to see the contribution you and your members are making to help firms, champion trade and rebuild communities.

"I wish all businesses every success in their endeavours in the weeks and months ahead."

Businesses have faced unprecedented financial difficulties during the Covid-19 outbreak, with many having to close their premises or seen customers and clients disappear during the lockdown.

With restrictions beginning to ease many are hoping trade will return but issues are likely to remain for the coming months.

Baroness McGregor-Smith said: "The Queen's personal message of support will be a huge morale boost to our business communities at this complex and sensitive time.

"We are grateful that Her Majesty has recognised the crucial role Chambers of Commerce play supporting businesses and communities through the pandemic, and as we restart, rebuild and renew the economy."

In the construction sector, a Scottish solicitor warned it will face major long-term difficulties without some form of government intervention.

Roddy Cormack, accredited specialist in construction law at Wright, Johnston & Mackenzie LLP, said it was facing a real uphill struggle.

"Although some restrictions are lifting, further increasing the work that can be carried out on sites, working practices are going to be drastically different for the foreseeable future as a result of social distancing," he said. "This means the prices agreed for work prior to the pandemic will no longer reflect actual costs in most cases."

He said that with the number of workers on site greatly reduced from before, a job that had been quoted based on 10 men may now have to be completed with five, making the original quote unfeasible. “We could find ourselves in a situation where contractors simply cannot afford to complete projects, and clients may need to pay extra and won’t necessarily have the funds to do so," he added. "Whoever has the best negotiating position will come out on top. If those who are in the stronger position are allowed to take full advantage of the situation, they’ll be the ones who survive.”

Mr Cormack said the government could offer grants or loans to employers to fund the additional expenses or said the regime for payment could be made 'even more rigid and uniform' so there was less scope to delay or avoid payment.

He said: “We can’t expect the government to solve all the problems created by coronavirus, and such schemes could cost billions, but a lack of intervention could put the construction sector in Scotland on its knees, which would be far more damaging in the long term. There’s no easy solution, but it’s evident we need to find a way forward that is sustainable for all parties.”

Despite the gradual easing of some restrictions for businesses, tourism leaders warned Scotland's National Park facilities remain closed.

Gordon Watson, chief executive of Loch Lomond & The Trossachs National Park, said: “As well as facilities being closed, a number of other measures, including road closures, temporary traffic orders blocking irresponsible parking and temporary speed limits are also still in place at key areas around the National Park.

“When these facilities do open, they will not operate as they did before with reduced capacity and safety measures in place."

The chief executive of VisitScotland, Malcolm Roughead, voiced concerns that an anticipated boom in staycations is managed to ensure it is not 'opening the floodgates'.

He said: "There is a bit of work that we need to do just to make communities feel secure.

"[Re-opening] has got to be done in conjunction with the industry and the community, so it is done safely and at a pace that suits both business and the community.

"The worst thing we can do is open the floodgates and we get a negative reaction."

The body that represents Scotland's hillwalkers and climbers said its members are struggling to understand why they cannot travel to the countryside while others have their journey restrictions lifted.

Mountaineering Scotland said outdoor enthusiasts in the Central Belt were being particularly hit.

There was now "concern" that where people "fail to understand the rationale for some aspects of the guidance they are less likely to respect it".

Mountaineering Scotland’s CEO, Stuart Younie, said: "While a lucky few who live within five miles or so of mountains have been able to restart their activities in Phase 1, that option remains closed to the vast majority, especially those living in the Central Belt.

“It’s difficult for our members – and other hill walkers and climbers – to put these activities, which are so important for their physical and mental wellbeing, on hold whilst travel is allowed for other purposes."