More than 40% of north-east businesses will need to cut jobs if existing Covid-19 restrictions are extended or strengthened further, according to a new survey.
A flash poll by Aberdeen & Grampian Chamber of Commerce (AGCC) has uncovered large levels of financial distress among companies, with almost a third (31%) at moderate or high risk of collapse should pandemic curbs continue.
And three-quarters (76%) now feel that the government is not balancing health and economic harms correctly when drafting policy.
The survey, which ran over the weekend and drew 170 responses, comes as new UK Government data shows that Scotland is currently performing no better than England at curtailing the virus, despite stricter measures on hospitality, nightclubs, home working and events.
The rolling seven-day case rate per 100,000 population, as published on Sunday evening, was 2,026 in Scotland, compared to 1,924 in England, where fewer restrictions are in place and large events, such as Premier League football, have continued.
Almost two-thirds (65%) of respondents to the AGCC poll believe that the restrictions in place are no longer proportionate to the risk posed by Omicron.
Respondents graded the government’s response to the variant as a below average 3.7 out of 10, and First Minister Nicola Sturgeon has already outlined that she will seek ways of managing the virus that are more “proportionate, sustainable and less restrictive” going forward.
Ryan Crighton, Policy Director at AGCC, said the poll sends a clear message to ministers that the curbs must end on January 17th or earlier.
He said: “The latest data suggests that the Scottish Government’s gamble with our hospitality sector and high streets has failed, despite weeks of warnings.
“We have been calling for ministers to recalibrate their response since before Christmas following the publication of various studies on the severity of Omicron. Our position has been that if you are going to close or restrict businesses, then you need to compensate in full for the losses incurred. However, it is becoming increasingly clear that the funds simply aren’t available to support companies.
“Two things are now beyond question; one, that the restrictions currently in place are doing enormous damage to a number of business sectors; and two, that they have failed to make any meaningful difference to case numbers in Scotland.
“Therefore, the first minister must announce the end of these damaging restrictions this week. Not doing so places the very survival of many businesses at risk and jobs on the line.
“Where businesses and government now appear to be aligned is on the fact that we need to find a way to live with this virus. The exceptional roll-out of the vaccine has put us in a strong position and that new reality needs to start now.”