Covid-19 economic recovery will take years, business leaders warn

Significant parts of Scotland’s economy will face “worsening conditions” before coronavirus restrictions are eased later this year, business leaders have warned.

Tim Allan, president of the Scottish Chambers of Commerce (SCC), said after many firms suffered the “most challenging year in living memory” in 2020, things could get worse still for some.

He warned of a recession and jobs crisis caused by the pandemic “which will likely takes years to recover from”.

Meanwhile Mairi Spowage, interim director of the Fraser of Allander Institute economic think tank, said joblessness is likely to “rise significantly” when the UK Government’s furlough scheme is wound up at the end of April.

The latest SCC quarterly economic indicator, which looked at the final three months of 2020, showed business confidence in many sectors was still negative.

A total of 365 companies from across Scotland took part in the research, and Allan said: “We were hoping

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