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Retail chief says lockdown decision will cost Scottish businesses £135 million a week


By Chris Saunderson

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THE fresh lockdown in Scotland from Boxing Day will cost Scottish businesses £135 million a week, it has been claimed.

The First Minister announced further restrictions to combat the pandemic yesterday, including putting all of mainland Scotland’s local authority areas into Level 4 of the Covid Strategic Framework. This will see the closure of so-called non-essential shops in mainland Scotland for three weeks from the start of Boxing Day, and during the traditional post-Christmas discounting period.

David Lonsdale.
David Lonsdale.

The Scottish Retail Consortium says the move has come at the worst possible time for shop owners.

Non-essential shops were shuttered for 14 weeks in the Spring to help the fight against the pandemic, and shuttered 16 weeks for those within shopping centres and malls. In November and December non-essential shops in west central Scotland were shuttered for a further three weeks, only re-opening on December 11.

The SRC insists shops have taken every mitigation possible to keep customers and staff as safe as possible. Recent papers from public health advisers SAGE and their Welsh counterparts, the Technical Advisory Group, have explained the closure of non-essential retail would only have a “very minimal impact” on R values and reducing transmission of the virus.

David Lonsdale, director of the Scottish Retail Consortium (SRC), said: “We recognise that government has difficult decisions to make and the situation with the pandemic is fast moving, but this hugely disappointing news rounds off a torrid year for Scottish retail and is a further hammer-blow to non-food stores who have already borne so much during this crisis.

“Retailers in Scotland have invested over £40 million thus far making stores Covid-secure for customers and staff, and SAGE’s advice has said throughout that closing non-essential retail has a minimal impact on the spread of the virus.

“The consequences of this move could be severe. This decision comes only a week after the end of the local lockdowns in west central Scotland and slap bang in the middle of peak trading which so many are depending on to power their recovery and tide them over the leaner winter period.

"Faced with this news – and the prospect of losing £135 million each week in revenues during the lockdown – many stores will be in serious difficulty. Many could be lumbered with unsold pre-Christmas stock which will be difficult to shift in the absence of the usual Boxing Day and New Year discounted sales events, adding to cash flow woes. All of this will have implications for the survival of shops, for retail jobs and the vitality of our retail destinations.

“The government will need to offer additional financial support to help these businesses get back on an even keel – a firm and early decision to extend business rates relief into 2021-22 would be the place to start.”

The move sees Moray and the Highlands move from tier 1, where they have been for the last four weeks, to tier four.



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