Business Focus: As a third of Highland businesses continue to struggle post-Covid, Westminster and Holyrood can still do more to help
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by David Richardson, Federation of Small Businesses (FSB) development manager, Highlands and Islands
As the pandemic wanes, hopefully for the last time, last week’s move out of Level Zero is an important milestone on the road to recovery. According to recent quarterly FSB Small Business Indexes, business confidence was already improving in Scotland, but leaving Level Zero now gives firms much-needed flexibility over their working practices. And when combined with the removal of the need for some international travellers to quarantine, it enables them to increase capacity, create jobs and drive growth. Hurrah!
However, while extremely welcome, this development does not guarantee the recovery of individual businesses or local economies. As firms in the Inverness area know only too well, business life and business levels have not immediately returned to normal, and many firms face new debt that they’ll have to manage in the months and years to come. Indeed, nine in 10 Highland respondents to an FSB Scotland business survey that closed earlier this month said that they were nervous about debt levels resulting from the pandemic, with two in 10 worrying about how they will repay them.
Much of this can be attributed to the fact that three in 10 Highland-based businesses described themselves as struggling or really struggling – they were naturally nervous. Worries focused on future lockdowns and restriction-tightening, their low turnovers, difficulties recruiting staff, and keeping up to date with rules and regulations.
Despite unprecedented levels of financial support from governments, many businesses that thrived before Covid-19 became a “thing” now find themselves in great difficulty, and we cannot let them fail at this late hour.
We need governments in Edinburgh and London to support them by keeping the remaining Covid-19 rules as simple as possible; by putting lids on the overheads that they control, such as taxes and charges; and by investing in damaged high streets. Most importantly, we need them to do more to help firms access the skilled staff that they so desperately need. It really is hard to see a full and successful long-term recovery taking place until this happens.
