Warning to government
Firms warn ‘will run out of cash’ without speedier support
Liz Cameron: ‘businesses need cash in the bank now’ (pic: Terry Murden)
Half of Scottish businesses say they will run out of cash within three months unless there is a step up in access to government support, according to a survey.
The Scottish Chambers of Commerce (SCC) found that 13% of those asked will have no cash by the end of this month.
Over three-fifths of firms (64%) of the 350 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.
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 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.’’