Enhanced restrictions on trading in Scotland "have failed to make any difference" to case numbers and are doing more harm than good, a leading business group has warned.

A snap poll by the Aberdeen & Grampian Chamber of Commerce (AGCC) found almost two-thirds of businesses in the north-east do not believe that the curbs in place are proportionate to the threat posed by the Omicron variant of Covid. Respondents graded the Scottish Government's response at 3.7 out of 10.

More than 40 per cent said they will need to cut jobs if restrictions are strengthened or extended beyond the current timeframe of January 17. The survey also uncovered high levels of financial distress among companies, with 31% at moderate or high risk of collapse should curbs continue.

First Minister Nicola Sturgeon is due to give MSPs an update tomorrow as part of the offical review process of the latest restrictions imposed during the run-up to Christmas.

These included the return of limits on crowd capacity at indoor and outdoor venues, as well as limits on the hospitality industry and the return of social distancing requirements.

The Herald: The First Minister is due to give a Covid update to MSPs on TuesdayThe First Minister is due to give a Covid update to MSPs on Tuesday

Ryan Crighton, policy director at AGCC, noted that the latest case rate per 100,000 of 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. Curbs "must end" on January 17 or earlier, he added.

“The latest data suggests that the Scottish Government’s gamble with our hospitality sector and high streets has failed, despite weeks of warnings," Mr Crighton said.

“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.

READ MORE: Hospitality losses spiral by hundreds of millions of pounds, report finds

“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.”