The Government’s response to the coronavirus has been “woeful” across a range of measures, the head of a leading business group has said.
James Ramsbotham, chief executive of the North East England Chamber of Commerce, has issued a wide-ranging attack on Ministers, hitting out at communication failures, shortcomings in the track-and-trace programme and the lack of impact from many Government support schemes.
He added that the danger of a no-deal Brexit was a “massive risk” to North East businesses and said it was time for “action, not words” on the Government’s pledge to level-up the regions of the Ƶ.
Mr Ramsbotham’s words - which echo frustrations expressed by a number of business groups - come as the Bank of England warns that, though the economic downturn would be not as bad as first thought, the recovery was now expected to be more drawn out.
The Bank of England has warned that it expects Ƶ unemployment to jump to 7.5% by the end of the year.
Speaking at the Chamber’s AGM, Mr Ramsbotham said: “Government’s actions have been woeful on a number of levels. One of my main concerns has been communication. This has been exceedingly poor, both in the manner of the message delivery and the appalling lack of clarity. It has created a heightened sense of alarm and widely damaged confidence.
“The level of support available has also fallen short of levels needed. The Chancellor spent £30bn in his Summer Statement but achieved very little.
“The support measures should have been extended to the so-called “excluded” such as the self–employed operating as limited companies and those who took up new jobs in February/March but were not eligible for the Furlough Job Retention Scheme.
Many hard-working businesspeople have had little to no financial support for the last five months. The furlough scheme should also be extended for certain sectors such as hospitality and available for potential local lockdowns in the future.
“Our country’s ‘track and trace’ process is simply not fit for purpose. We have heard from Chamber colleagues around the world where their Governments have devised systems which create real confidence so that people feel comfortable to go about their business and to visit hospitality and leisure venues. Getting this system right is crucial to us getting the economy back on track.
“We also need Government to make sure schools and nurseries are at the heart of its economic strategy. People need to have certainty in their childcare provision to be able to go to work.
“Uncertainty around Brexit and the risk of a ‘no deal’ outcome is another massive threat to our business community. Companies have prepared twice for previous deadlines, at tremendous expense.
“Many do not have the cashflow to do so again. Leaving the EU will mean an increase in red tape which will be so challenging. We export more than any other Ƶ region and our exporters must have a good deal if they are to flourish.
“Levelling up has been a Government rally cry but we have seen nothing concrete to suggest it is a serious ambition. We, as a region, entered this pandemic with the highest unemployment figures, lowest life expectancy and highest number of children in low income households. Our economy and health are closely entwined.
“We need Government to give us the financial support to enable us to exploit our potential. There has to be action, not words.”
Earlier this week, the Government announced a £47m allocation to the North East from its Getting Building Fund which is says will create 2,200 new jobs, 1,800 construction jobs and safeguard an existing 3,500 posts. Schemes which received backing included the Aykley Heads business park in County Durham, a new Shields ferry landing at the North Shields Fish Quay and improvements to Newcastle city centre.
But the announcement was overshadowed by a rash of job losses, with more than 6,500 likely redundancies announced this week alone, including more than 850 at Sunderland’s Hays Travel.
Monthly unemployment figures will be released next week, with the North East having seen a massive rise in the number of people claiming unemployment benefits since March. It is widely anticipated that the unemployment numbers will rise as the furloughing scheme comes to an end.
Earlier this week the British Chambers of Commerce published survey results which showed that most firms were likely to ignore many of the support measures announced by Chancellor Rishi Sunak in his summer statement, particularly those meant to be boost training and employment for young people.
A Government spokesperson said: "This is an unprecedented global pandemic and we have taken the right steps at the right time to combat it, guided at all times by the best scientific advice.
"The Government has been working day and night to battle against coronavirus, delivering a strategy designed at all times to protect our NHS and save lives.
"We put in place an unprecedented initial economic support package for jobs and business worth £160bn. The next stage in our economic response will make a further £30bn available to ensure all areas of the Ƶ bounce back."
