NICOLA Sturgeon has said Aberdeen will remain in local lockdown for a third week as it is "not yet safe" to lift restrictions.
Pubs and restaurants in the city will stay closed and restrictions on household gatherings and travel will remain in place, with 15 new coronavirus cases recorded in Grampian in the last 24 hours.
The First Minister said she hopes to be able to lift restrictions for "lower risk premises", such as cafes, from next Wednesday and a mid-week review will take place on Sunday.
It comes despite Aberdeen Council saying it opposed the local lockdown continuing beyond Saturday, citing the significant impact on its economy.
The city's Labour leader Jenny Laing said extending the restrictions "is only going to make a bad economic situation even worse".
In a statement, she said the "perception and reputation of Aberdeen is being damaged the longer this goes on".
Douglas Lumsden, her Conservative coalition partner, said: “The First Minister must be aware of the harm extending the lockdown is doing to both our citizens and our economy."
Speaking at the Scottish Government's coronavirus briefing on Wednesday, the First Minister said while the situation in Aberdeen is "undoubtedly improving" she is not "in a position to say that this outbreak is over or completely under control".
She said: "This is now some evidence that the original cluster linked with bars and nightlife is being contained.
"However we are also continuing to see a number of individual cases and other smaller clusters in the city.
"That is not necessarily unusual for an outbreak of this scale but it is something we must monitor very carefully because these cases don't appear to be linked to the original outbreak.
"In addition, the number of new cases in Grampian over the past week remains higher than in other parts of the country, and it continues to show some volatility."
She added: "It's therefore the Government's view, based on clear advice from the chief medical officer and the national clinical director, that it is not yet safe to lift these restrictions immediately."
While she acknowledged it is "disappointing" the restrictions in the area cannot be lifted, Ms Sturgeon said "moving too quickly" could risk the progress that has been made.
She added an immediate £1 million support fund will be made available for businesses in Aberdeen, with grants of up to £1,500 available for firms in the hospitality sector that have had to shut.
Other businesses that have "felt the financial impact of the restrictions", such as hotels and shops, can also apply for funds.
Ms Sturgeon also gave the latest coronavirus figures in Scotland, including an update on various clusters.
While no coronavirus deaths have been reported in Scotland in the last 24 hours, the death total has increased by one to 2,492 due to a previous fatality being included in the figures.
The death was registered on April 21 but not included in original figures due to a delay.
A total of 19,457 people have tested positive for the virus in Scotland, up 50 from 19,407 the day before.
The First Minister said 4,216 people have died in Scotland with confirmed or suspected coronavirus, according to the National Records of Scotland.
Lockdown restrictions were reimposed on Aberdeen two weeks ago after a Covid-19 cluster was detected.
Ms Sturgeon said the outbreak is "by some distance the most significant outbreak" Scotland had seen since lockdown measures were eased.
A total of 398 cases of Covid-19 have been identified in the Grampian area since July 26, she added, with 226 of these associated with the cluster linked to Aberdeen pubs.
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