Why business in Kirkcaldy could take 3-5 years to recover from coronavirus

Businesses across Kirkcaldy are facing a recovery period of between three to five years.

While the doors to a huge number of offices, factories, restaurants and shops remain closed, a picture of what lies ahead is starting to emerge.

This week saw companies across the region register for the Government’s furlough scheme which covers 80 per cent of staff wages.

And many are digesting the partial U-turn of the Scottish Government over which businesses are eligible for grant aid.

But there are fears that some will still fall through the gaps – and won’t survive lockdown.

Councillor Alistair Cameron, who ran a business on the High Street in Kirkcaldy for over 20 years, said his biggest concerns were over the fate of the companies which missed out.

A company with a business rateable value higher than £51,000 gets nothing - those include medium sized businesses often employing between 15 and 50 staff.

Anyone operating without premises misses out.

People who haven’t registered properly or run on a cash basis will get nothing.

He has spoken to over 60 businesses across the town, and says the picture is very mixed, with many distressing calls from business owners who fear they have no future.

The re-think from the Scottish Government over how it managed the business rates relief grants was welcomed – but it only came after a backlash.

Grants of £25,000 for eligible business properties were a key component of a package of measures announced by the Chancellor, Rishi Sunak.

The Scottish Government’s initial decision was to offer them per company, rather than per premises – a stance which, Cllr Cameron said, left many at risk of going under.It meant businesses north of the border were treated differently to those in the south, and companies with multiple outlets would be hardest hit.

One of the examples used by Alex Rowley MSP to highlight the problem was Wilkies whose Kirkcaldy shop is one of 14 employing 131 people – 129 of them women.

Last week, Kate Forbes, Finance Secretary, made a partial U-turn as she announced that businesses with more than one outlet would get 100 per cent grant on the first, and 75 per cent on the remainder.

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“There will still be a number of people falling through the gaps,” he said. “There is no way any Government can satisfy everyone’s needs.

“My concerns are those who will miss out, and the impact that will have on jobs.

“Business owners who pay themselves by dividend – which is perfectly normal – have been excluded - and are having to draw on their own personal funds to survive.

“I’ve spoken to some who fear a prolonged shutdown –they won’t be able to survive it.”

He said their only option was a bank loan – but, anecdotal evidence, suggested some banks were not playing ball.

“The number one complaint I’m getting is about banks,” he said. “They are being heavy handed. They need to be more sympathetic towards business, or the Government has to step in with a 100 per cent guarantee for the loans.”

Three weeks into lockdown, and a very mixed picture is emerging of some businesses staying busy - essential services, such as delivery companies - but others unable to operate at all, and some one-man operations returning to work simply because they need to.

He predicts it will take business three to five years to get fully over the impact of the pandemic, but the full picture won’t be known until everything starts up once again.Shops which rely on seasonal lines could now be left with orders for stock that will never see the light of day – and no way of cancelling –while the hospitality sector could face further delays if social distancing continues for a prolonged period.

“We could face a town centre with even less retail. My concern is the small chains who have branches in Kirkcaldy.

“They will make decisions to see how many should re-open, across Scotland and England, and my worry is Kirkcaldy will be on their hit list.

“There are real issues facing ‘non-essential’ shops, which are all currently closed, but I can then look to our town’s strong independent sector who have a passion for being here and are doing all they can to re-open when they get the go ahead.

“There are many good businesses around Kirkcaldy who have furloughed staff – and the scheme is one of the best and most generous in Europe – and are working towards coming back.

“This pandemic has cost them, but they can endure and look ahead, even it may take three to five years to fully recover.”

With furlough claims being processed and applications in for business grants, many businesses owners will be hoping the next news is when they can re-open.

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Allan Crow, Editor, Fife Free Press