MORE financial support for businesses is needed as new restrictions deliver a “hammer blow” to firms, industry leaders have warned.

In comes after Nicola Sturgeon announced new Covid restrictions in response to the surge in Omicron cases across Scotland.

While no changes will be made before Christmas, from December 26 there will be a limit on the number of people who can attend public events that will run for three weeks.

And from December 27 people are being asked to limit contacts as much as they can and this advice will continue over the New Year period and into the first week in January. After that, the guidance will be reviewed.

READ MORE: Nicola Sturgeon announces new Covid restrictions for Scotland

The Scottish Chambers of Commerce (SCC) has warned that the current financial support from the UK and Scottish governments are not enough to recoup business losses.

The First Minister explained during her statement that she is still working with Westminster to try and secure further funding - stressing that Holyrood's limited powers are affecting her government's ability to support firms.

"Current UK funding arrangements mean, firstly, that only the Treasury has the borrowing powers to provide support on such a scale," she told MSPs.

"This means that our ability to act to protect public health - and to compensate individuals and businesses affected - is curtailed. This cannot be right in a public health emergency."

The National:

Scots Hogmanay plans could be affected by new Covid restrictions

She said she believes the Scottish Government has a pot of about £375 million to "help support business for the unavoidable impacts of our decisions over the next three weeks".

Dr Liz Cameron, chief executive of the SCC, said: “Businesses across Scotland have already lost millions of pounds in trade due to the return of restrictions and the confirmation that yet more restrictions will come into place from Boxing Day will be another hammer blow for employers and Scotland’s economy.

READ MORE: Rishi Sunak's £1bn business support package to see just £80m come to Scotland

“Businesses across Scotland, who have been doing everything they can to keep their employees and customers safe, will be bitterly disappointed by these further restrictions. Some businesses and sectors will view this update as the equivalent of receiving a lump of coal in their Christmas stocking, further compounding the downturn in trade they have experienced in the crucial run up to the festive period.

“Businesses now urgently need to see the guidance and regulations that underpin this announcement to understand the full impact these changes will have on their capacity, how they operate and if they will even be able to open at all.”

She said the announcement of additional financial support from the UK and Scottish governments for businesses is welcome but added “it still does not go anywhere near far enough to compensating for the enormous financial losses firms are experiencing”.

She continued: “January is beginning to look increasingly bleak for businesses and the prospect of an early return to economic growth in the New Year is now clearly at risk.

“It’s essential that the Scottish and UK Government do everything they can to get financial support out to businesses as quickly as possible and go further to ensure additional financial support is made available as a matter of urgency or the viability of more and more businesses will be put in the balance.

“The vaccination and booster programmes remain our best way back out of this crisis and again, both Governments need to work together to accelerate the rollout over the coming days and weeks to enable the removal of these additional restrictions at the earliest possible moment.”

Football fans will also be affected by the new announcements, with the First Minister confirming that the new restrictions will make “sports matches, including football, effectively spectator-free over this three week period”.

Reacting to the announcement, Scottish Football Supporters Association said it will lead to “significant revenue shortfalls” to clubs.

The National: Scotland fans in the stands at Hampden

A maximum of 500 fans will be allowed to attend outdoor matches

The group said: “Today's announcement by the First Minister although not completely unexpected will come as a real disappointment to Scottish Football fans everywhere and a shock to the finances of many clubs.

“Local derbies and the festive feel-good factor is the highlight of the season to many and football proceeding with just 500 fans is also a major organisational nightmare for our bigger clubs.

“For now we can all see the bigger picture and the urgent need for control and in a day of few positives, we welcome the fact that football has not been stopped completely which was always our deepest concern.

“It is another new normal but The SFSA would like to see urgent discussion for support on the financial impacts to our game and a road map for coming out at the other end.”

Sturgeon confirmed the new regulations will mean that “large-scale Hogmanay celebrations - including that planned here in our capital city - will not proceed”.

Confirming the cancellation of Edinburgh’s Hogmanay programme for 2021, Underbelly co-directors Charlie Wood and Ed Bartlam said: “We are incredibly sad to announce the cancellation of the Edinburgh’s Hogmanay programme for 2021 following new restrictions announced by Scottish Government today. After such a tough year for so many people, we were looking forward to helping bring people back together safely at Edinburgh’s iconic Hogmanay celebrations.

“We know this news will be disappointing for so many people, but we also know that Edinburgh is a wonderfully innovative and resilient city, and we know it will recover from these difficult times and return to the forefront of the world’s new year celebrations in the future”.

Among the celebrations to be cancelled includes a Doguie MacLean performance on December 29, Eddi Reader on New Year's Eve and Edinburgh's midnight fireworks celebrations.

READ MORE: Nicola Sturgeon update RECAP: Follow along with news on Omicron restrictions

Businesses are also warning about the effects social distancing measures will have on hospitality firms.

Andrew McRae, FSB’s Scotland policy chair, said: “The measures outlined today will make trading drastically more difficult for huge numbers of small businesses in Scotland. The social distancing restrictions will mean shops and hospitality firms can serve fewer customers. And the changes to events, such as sports matches and Hogmanay celebrations, will have a knock-on impact on local economies.

“After a disappointing festive trading period, these moves will heap pressure on local firms and the self-employed. The same group of businesses that took the greatest hit earlier in the crisis now face another gruelling winter and spring. These operators now face tough decisions about whether they open their doors with restrictions in place or stop trading until they’re lifted.

“New grant funding, though welcome, must now quickly reach the wide variety of firms now taking a hit. We cannot see restrictions imposed in days, but cash support taking weeks or months to get through.”