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PRIVACY
Economic Development

Northern economy to take £11bn hit from pandemic, report says

The link between health and the economy is highlighted in the report from the Northern Health Science Alliance

A social distancing sign in Sheffield(Image: Danny Lawson/PA Wire)

The economy of the North is set to lose more than £11bn because of the physical and mental health impacts of the coronavirus pandemic, a hard hitting report reveals.

The study from the Northern Health Science Alliance (NHSA) finds that existing health inequalities in the North have been massively worsened by the Covid outbreak, impacting on the region’s productivity and increasing problems such as loneliness, financial wellbeing and neglect of children.

Researchers from four Northern universities found that an extra 57.7 people per 100,000 died in the North between March and July compared to the rest of the country, reducing the region’s productivity by £6.86bn. In addition, increased mental health problems in the region could cost up to £5bn in lost productivity.

The report - which comes after previous studies showed the link between poor health among people in the North and the area’s economy - has sparked calls for a wide programme of investment in health services to turn around the historic inequalities affecting many parts of the region.

Prof Clare Bambra, professor of public health at Newcastle University, said: “Our report highlights that we are not all in the pandemic together, with the Northern regions being hardest hit. Health and wealth in the Northern Powerhouse lagged behind the rest of the country even before the Covid pandemic, and over the last year our significant regional inequalities have been exacerbated.

“We need to significantly ‘level up’ the country by providing immediate additional support to local authorities and devolved administrations in the North - and by investing further in public health prevention in the Northern Powerhouse. In this way, we can reduce the inequalities that the pandemic has highlighted and ensure that our regions are better equipped for building back better.”

Hannah Davies, health inequalities lead for the Northern Health Science Alliance, said: “Health inequalities between the North and the rest of England have been growing for over a decade. This report demonstrates the impact that has had on the productivity of the region and how it has led Covid-19 to take a devastating grip on the North.

“We call on the Government to follow the recommendations of the report to put mitigating measures in place, to support public health measures, reduce child poverty, tackle mental health to support North through the pandemic and allow its ambition of levelling up to become an achievable reality.”