One in three Scottish businesses closed by coronavirus fear they may never reopen

FSB survey reveals struggling companies

ONE in three Scottish business owners who have shut down their operations during the coronavirus lockdown fear their firm may never re-open, a survey found.

The Federation of Scottish Businesses, who questioned nearly 5,500 businesses across the UK including 758 in Scotland, called for sustained government support for firms grappling with the impact of the crisis.

And the FSB in Scotland said there should be clear official guidance about the steps businesses north of the border should take before they consider re-opening.

The survey found 53 per cent of Scottish firms have been forced to close since the beginning of the coronavirus outbreak, compared to 41 per cent across the UK. Of those that have closed - both in Scotland and across the UK - 35 per cent are not sure whether they will ever reopen again.

Andrew McRae, FSB’s Scotland policy chair, said: “In the jaws of the crisis, a huge share of independent Scottish firms did the right thing, followed the official advice and shut their doors. Our new survey shows that many of these operators worry they’re closed for good.

“We’re certain however that with the right help from government, bigger businesses and the general public, we can ensure these fears aren’t realised. But this research does show that many local operators are on a knife-edge.”

According to the survey, 19 per cent of Scottish businesses have had problems making, commercial rent or mortgage repayments as a result of the pandemic’s economic impacts.

Mr McRae said: “When the time comes to begin to re-open, businesses won’t be able to go from 0-60 overnight

“Many will want to phase a return to test any new systems and to keep their staff safe.

“We’ll need to see sustained help on offer to help firms avoid stalling on re-start.”