The coronavirus pandemic could put 123,000 jobs at risk in Devon, the county’s three biggest councils have warned.
The cost to the local economy could hit £1.98 billion – 12% of the value of goods and services produced, and recovery in local communities will take longer than other parts of the º£½ÇÊÓƵ.
Devon County Council, Plymouth City Council and Torbay Council, with input from business organisations and the Heart of the South West local enterprise partnership, have joined forces to plead for more urgent government support for the region’s economy.
The cumulative impact of job losses in the air industry, hospitality, food and drink and retail sectors have contributed to the government’s Local Economies Advisory Panel assigning a “red rating†to the economies of Devon, Plymouth and Torbay.
Construction, manufacturing, marine and fishing industries are now suffering too as their order books empty.
On average, Job Centres were reporting at least six-fold increases in new claimants this week.
The report recognises the speed with which the government has moved to put support packages in place to benefit businesses during this unprecedented situation.
However, it highlights gaps in the government’s package of emergency support and recommends measures to ensure they are more effective. They want a £40 million flexible response and recovery fund with grants for small businesses at risk of missing out on government support.
Devon has 81 key employers with turnover greater than £45 million, between them worth £12 billion to the º£½ÇÊÓƵ economy. They are not currently eligible for government support, but they are struggling to survive, putting 66,000 jobs and important supply chains at risk, the councils say. The councils urge the government to give these employers loans.
The councils want the delivery of government support for the self-employed to be accelerated, and a major new retraining programme to kick start a recovery.
And they want the government’s procurement arm, Crown Commercial Services, to buy from local food and drink producers and fisheries.
Devon County Council leader John Hart said: “The economic impact of the coronavirus is severe and worsening, with the number of businesses fighting for survival increasing daily.
“We want local businesses to know that we are in their corner, fighting for them, and we’re urging the government to get behind us.
“If even 30% of the predicted job losses result, then this would be higher than the impact our region experienced from the 2008-2011 recession.â€
Tudor Evans, leader of Plymouth City Council, said: “It is becoming clearer and clearer that there are significant gaps in those who qualify for support.
“One area which feels particularly unfair is businesses which have a package of combined businesses rates and rent.
“There are at least 400 businesses in the city which would probably qualify for a grant of £10,000 and currently cannot access it because their rent and rates are combined.
“There are businesses which are just outside the threshold and there is no flexibility.â€
Cllr Swithin Long, Torbay Council’s Cabinet member for economic regeneration, tourism and housing said: “So much of Torbay’s economy is based on the hospitality and tourism sector and the short-term survival of local businesses will be reliant on financial help coming sooner rather than later.â€
Karl Tucker, chair of the Heart of the South West LEP, said the region’s heavy reliance on tourism and source of much of the º£½ÇÊÓƵ’s food made it particularly vulnerable – and particularly important to the health and wellbeing of the country.
