Over a third of Highlands and Islands businesses fear they may never reopen
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Over a third of Highlands and Islands businesses that have shut down their operations during the coronavirus outbreak fear they may never reopen, according to a new survey from the Federation of Small Businesses (FSB).
On the back of the research, the small-business campaign group is calling for sustained government support for firms struggling with the impact of the crisis. And FSB Scotland says it wants clear official guidance about the steps businesses north of the border should take before they consider reopening.
The FSB’s survey found that almost two thirds (64 per cent) of Highlands and Islands firms have been forced to close since the beginning of the pandemic, compared with about half of Scottish firms (53 per cent) and four in 10 (41 per cent) across the UK as a whole.
Of those that have closed in this region – defined as the Northern and Western Isles, Highland and Argyll – over a third (36 per cent) are not sure whether they will ever reopen, a figure mirrored by Scotland as a whole.
The survey also found that almost a fifth (18 per cent) of businesses in the Highlands and Islands have failed to make, or have faced severe difficulties in making, commercial rent or mortgage repayments as a result of the economic impact of Covid-19.
The FSB’s Highlands and Islands development manager, David Richardson, said: “The majority of Highlands and Islands businesses are now relying on whatever government support they can get to survive, having followed official advice and closed their doors.
“Given our highly seasonal visitor-based economy, many are seeing the opportunity to make money this year slip through their fingers as lockdown continues towards the normally busy summer season, and over a third of all smaller businesses are on a knife-edge, worrying that they might never reopen at all.
"Unlocking can’t come soon enough for them, but all recognise that this can only happen when the Scottish Government deems it appropriate to do so, based on the best expert scientific and medical advice.
“In the meantime, businesses are doing everything possible to adapt to this rapidly changing world. But when the time comes to begin reopening, they won’t be able to go from nought to 60 overnight – for many it will take time to staff up and reactivate supply chains, and it will take time for customer numbers to rebuild.
“However, revival must not be down to businesses alone. If we want to protect our local economies and communities from closures and rising unemployment, we must all – governments, big businesses and the general public – strain every sinew to support our local businesses and give them the best possible chance of survival.
"In particular, businesses will need sustained government help to reduce the chances of them stalling on restart. They will need clear official guidance from the Scottish Government over the steps they should take to ensure that they open safely. And they will need the Scottish Government to do everything possible to reassure a frightened general public that it is now safe for them to reopen.”
