‘Firms still in need of support’ and the UK government must continue the furlough scheme says Highland-based economist as coronavirus lockdown eases

The UK government must continue the furlough scheme, even as lockdown eases, an Inverness economist has said.

Tony Mackay believes businesses will be disappointed by the timings set out by Nicola Sturgeon this week, though he thought her caution was understandable after cases surged following the Christmas easing of restrictions.

“The Highlands have been worse affected than Scotland as a whole because the tourism and hospitality industries are much more important here,” he said.

With a May reopening on the horizon for hotels in England, he added: “The Chancellor of the Exchequer will announce his UK budget next week, so let us hope that he will continue the furlough and other assistance schemes until then.”

He added: “I don’t see the Highland economy returning to its pre-2020 situation because I believe there have been some long-term changes. Firstly, the move to home working has benefited the smaller towns and villages at the expense of the city of Inverness. Secondly, the switch to online shopping has permanently affected places like the Eastgate Centre.”

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