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Scotland's business leaders welcome Rishi Sunak's 'bold' plan to save thousands of jobs this winter

Britain's Chancellor of the Exchequer Rishi Sunak hosts a remote press conference to update the nation on his economic measures - AFP
Britain's Chancellor of the Exchequer Rishi Sunak hosts a remote press conference to update the nation on his economic measures - AFP

Scotland's business leaders have said the Chancellor's "bold" new blueprint will save hundreds of thousands of jobs this winter but warned extra support will be needed for the worst-hit sectors.

CBI Scotland, the Federation of Small Businesses (FSB) and the Scottish Chambers of Commerce (SCC) all gave a warm welcome to Rishi Sunak's successor to the furlough scheme and loan support.

Tracy Black, the CBI Scotland director, said he had "acted decisively" after listening to businesses and unions and the package would "reduce the scarring effect of unnecessary job losses."

The FSB and SCC also praised his "winter economy plan" but warned that additional measures would be required to help some sectors, including those hit by this week's announcement of a 10pm curfew on hospitality premises.

In contrast, Scottish tourism chiefs said the blueprint fell "some way short" of what was required to rescue the industry from a "perilous situation".

Marc Crothall, chief executive of the Scottish Tourism Alliance (STA), said the Job Support Scheme would only help those businesses with "sufficient demand to pay these minimum hours."

He alleged that the majority of tourism-related businesses are closed because of Covid-19 restrictions and therefore would not benefit.

Kate Forbes, the SNP's Finance Secretary, welcomed "some of what has been announced" but argued it did not go far enough.

But business leaders said the Scottish Government should also be providing support, including cutting struggling firms' business rates bills.

Mr Sunak said: "When I visited Scotland last month I saw first-hand how UK Government schemes have protected jobs and businesses in the face of this crisis.

“And I was always clear that I wouldn’t hesitate to act in a creative and effective way to provide even more support should it be needed."

He added: “With the resurgence of the virus and the restrictions imposed as a result now is the right time to provide the people of Scotland with the extra help they need.”

Alister Jack, the Scottish Secretary, said: "The package announced by the Chancellor today is great news for people and businesses in Scotland. It will help keep people in jobs, extend crucial support to businesses and giving them the certainty they need."

Ms Black said: "These bold steps from the Treasury will save hundreds of thousands of viable jobs this winter. It is right to target help on jobs with a future, but can only be part-time while demand remains flat. This is how skills and jobs can be preserved to enable a fast recovery."

Andrew McRae, the FSB's Scotland policy chair, said: “The Chancellor has avoided the dismal scenario where Scottish firms faced new and ongoing restrictions on trade while most support for business was being withdrawn. Today’s measures go some way to filling the most obvious support gaps, but ministers must be prepared to go further.

“We’re missing new support for the 1 in 20 Scottish businesses that are still unable to trade at all because of government rules, such as soft play centres and nightclubs."

Dr Liz Cameron, the SCC's chief executive, said: "This should help save many from losing their jobs completely and lessen the immediate pressure on cash flow for businesses, particularly during what will continue to be difficult trading conditions this coming winter."

But Mr Crothall said: "The reality we must all face now is that within the coming days and weeks, businesses owners will lose their livelihoods, thousands will lose their income and the effects on the economy and people’s lives will be nothing short of devastating."