Perth will "stand up" to the challenges caused by Ovo
The energy firm are set to close their office in the Fair city
Last updated 1st Feb 2022
There is concerns for the future for business in Perth after the pandemic, as major companies pull out of the Fair city, with Ovo Energy looking to close their operations.
There are now fears local business Stagecoach could follow, ahead of merging with National Express.
But leader of Perth and Kinross Council, Murray Lyle, says Perth will "stand up" to the challenges caused by Ovo energy's decision to close.
The closure is expected to see 700 staff members in the fair city lose their jobs as the energy firm are set to axe 1,700 employees.
A further impact could be seen in the city as Stagecoach may follow the energy company out of the area as they are set to merge with National Express. The move is currently under investigation by the competition regulator.
These moves alongside the impact of the pandemic have drawn questions over the future of the business sector in the area amid fears it could be the start of a decline. However, the council leader remains optimistic for the future.
READ MORE: 'Unsatisfactory' meeting with Ovo provides no clarity over Perth jobs
He said: "There is no doubt that city centres across the country are going to change. We're going to have to bring people back into city centres, we'll have to make them lived in places rather than just purely retail.
"There's going to be working from home in many cases in a part-time basis, if not a full-time basis. The dynamic of how cities work across the country is going to change and we're prepared for that in Perth."
He added: "I think Ovo is obviously a real challenge to us, but, it depends if you lie down to these challenges, you'll lose. I'm sure Perth will stand up to this and see it as an opportunity to introduce other businesses into the area.
"We have got the support of all local MP's and MSP's and we have the First Minister, who spoke on this last week in parliament, so hopefully we can address that situation."
The council leader says that many local business in the area have been recording a profit. He said: "Perth has always prided itself on its independent business sector. Lot's of micro-businesses, lot's of small independent retailors, for example, who have had a tremendous success because of their flexibility.
"They've been fleet of foot during the pandemic and many of them have recorded significant profits. I understand the challenges on Perth's economy but really they are not that different than others are."
The Conservative councillor says the local authority have already taken action to help businesses in the area. He said: "I think from a council perspective it's up to us to not only support the larger businesses but also the micro-businesses and we've put huge sums of money into supporting micro-businesses.
He also added that he hopes to see further Scottish Government support should it be required following the closure of Ovo's local office.
He said: "As you will have seen with the Michelin project in Dundee, there was significant economic support coming from the Scottish Government. Should we lose all these jobs with Ovo then we hope for something similar coming to Perth."
Local business owner, Stuart Kane, echo's the council leaders optimism for the future of the sector in the city. He said: "I think there's a lot of room for opportunity in this city and I think this city has a lot that it can offer now and will offer in the future.
"Personally, I know of a couple of businesses that are just about to open in the town, so that's good. So, I think there is a lot of life in here."
READ MORE: 'Sadness' and 'anger' in Perth as Ovo set to close its office in the fair city
Despite his optimism, Kane does have some reservations about the departure of Ovo.
He said: "There is always that worry that when something shuts that nothing is going to replace it. My experience of Perth is that, whenever one shop shuts, another one opens anyway, so yes there are a lot of To Let signs but all that's really happened is that they've moved around.
"I don't want to be too, you know, oh the armageddon is coming and the place is going to shut down entirely. You know I don't think the city is going to fall apart or anything like that, but yeah, it's definitely a worry when the larger employers go."
Big Dog Books also operate in Dundee and Kane says his store in Perth is performing much better.
He said: "Partly that is that I signed the lease on the Dundee shop like four days before they announced lockdown, so that was fun. The Dundee one is getting there, it's getting back up on its feet after the pandemic and what not. But, the Perth shop definitely does better than the Dundee one."
The bookshop owner does have an idea that will help further boost trade in the area. He said: "Public transport in Perth is not good. So I regularly go between Perth and Dundee and there is only one train every two hours which is ridiculous for city's that are only 20 minutes apart. The bus service at the weekend shuts at six, what use is that?
"My numbers might be off here, but, it's only something like ten percent of people that live in Perthshire live in Perth. So, if Perth as a city are going to capitalise on all of its people it needs to connect them better. So, we need to have better bus links that run later into the night, run more frequently and are safer."