Business leaders have called for further support to prop up the economy following confirmation that Scotland is returning to the strictest of lockdown restrictions.
Andrew McRae, Scotland policy chair for the Federation of Small Businesses (FSB), warned of “more heartbreak” for smaller firms as this next stage of the crisis unfolds. The FSB is calling for rapid action as assistance can no longer be “a dollar short and a day late”.
“We need to see support for the economy match the scale and pace of these restrictions,” Mr McRae said. “Help for Scottish business can no longer be a dollar short and a day late.
“For a start, the glut of new support schemes announced at the end of last year need to start delivering cash to firms. So far, few of these initiatives have paid out a penny.
“Then Ministers need to urgently look at new ways to get money to the local firms who’ve borne the business brunt of this crisis.”
READ MORE: Nicola Sturgeon puts Scotland back into ‘stay at home’ lockdown
His comments came after First Minister Nicola Sturgeon announced tough new measures coming into force at midnight, under which Scots must by law remain within their homes for all but a few exceptions until the end of January. Likewise, schools will remain closed until at least the start of next month.
CBI Scotland director Tracy Black said businesses would continue to support parents juggling work with home schooling, but added that the new national lockdown is a “severe setback” for companies attempting to claw back losses from 2020.
“There’s now an urgent need for existing financial support to be unlocked, so companies can survive the spring and beyond, and for Holyrood to clarify guidance on what constitutes an essential business,” she said.
READ MORE: Scotland’s ‘forgotten firms’ need urgent coronavirus grant money
“Ultimately the best way to call time on this damaging cycle of restrictions and double down on efforts to protect people’s lives and livelihoods is through effective vaccine roll-out and widespread mass testing.”
Liz Cameron, chief executive of the Scottish Chambers of Commerce, said firms “fully appreciate the need” for action in response to rising rates of infection. However, “we cannot ignore the direct impact this will have on business and livelihoods”.
“The welcome news today that the Oxford vaccine has started to be rolled out reminds us that there is hope and we must focus all our efforts and resilience towards 2021,” she said.
“What is equally vital is that the Scottish Government also puts in place measures which will provide a springboard to private sector recovery when this latest round of restrictions is lifted. Support for businesses which have already been through so much and survived 2020 must be expanded and all cash support paid out urgently.”
Ladbrokes dismisses $11bn takeover bet
Ladbrokes owner Entain has said that an $11 billion (£8.1bn) takeover approach from US casino operator MGM Resorts significantly undervalues its business, as companies seek to capitalise on an expected boom in sports betting in the United States.
The US is widely viewed as the next big growth market following a 2018 Supreme Court ruling that lifted a ban on sports betting. American companies have sought partnerships to tap European expertise, including Caesars Entertainment’s £2.9bn deal for Britain’s William Hill in September.
READ MORE: Betfair and Paddy Power owner Flutter's online revenue up by a third in three months
Online betting has also enjoyed a further boost as Covid-19 restrictions encouraged locked-down customers to play more from home when casinos and betting shops were off limits.
MGM and Britain’s Entain, formerly known as GVC, have had a joint venture since 2018, when they set up an online betting platform in the United States.
London stocks begin 2021 with gains
London shares closed higher in the first trading session of the new year, buoyed by optimism around vaccine rollouts, while a jump in metal prices helped boost the export-heavy FTSE 100 index.
The blue-chip index rose 1.7 per cent on its first day of trading with the UK outside the European Union, with shares of Entain the top gainer. The Ladbrokes owner surged 25.3% to an all-time high after saying it received proposals from US casino operator MGM Resorts for a possible offer.
“We are seeing optimism on the first day trading on the back of a very positive month of December in which a collection of major risk events such as the Brexit deal and vaccine approval went in the right direction,” said Craig Erlam, senior market analyst at OANDA.
Mining shares and consumer stocks were among the top gainers, with Rio Tinto giving the biggest boost to the index. Unilever and Reckitt Benckiser Group advanced between 1.5% and 3.6%.
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