º£½ÇÊÓƵ

The value of goods and services produced in the West Midlands is estimated to be falling by 40 per cent a day - to the tune of £245 million - during lockdown, it has been revealed.

º£½ÇÊÓƵ Powerhouse - a report by Irwin Mitchell and the Centre For Economic Research (Cebr) - has revealed the impact of the coronavirus lockdown on the West Midlands' economy.

The report shows that gross added value (GVA) - the value of goods and services produced - in the West Midlands is estimated to be falling by 40 per cent - or £245m - every day during the lockdown.

It also outlines that the West Midlands is more vulnerable than others as it is one of the major centres for manufacturing in the º£½ÇÊÓƵ.

Manufacturing loss in the region accounts for just under a third of the total GVA lost, at £81m per day.

The West Midlands also has a relatively small professional service economy with financial and insurance activities accounting for six per cent of the total share of pre-COVID GVA, compared to London where it accounts for 13 per cent.

This lower proportion of professional service infrastructure means the region’s ability to work from home during lockdown has been more limited and hence there is a significant impact on the total GVA lost per day.

Chris Rawstron, partner and head of business legal services at Irwin Mitchell in Birmingham, said: "In absolute terms, the West Midlands does not fare as badly as some other regions but relatively speaking, it is likely to be one of the regions with the highest daily GVA falls.

"While manufacturing has been hit hard, other sectors are holding their own in difficult circumstances."

Chris added: "As we all move to a ‘new normal’ post lockdown, different regions are going to come out of this at their own pace and tailored support in key areas could prove vital to economic recovery.

"The last election saw talk of ‘levelling up’ the economy and a challenging task has undoubtedly become harder given the impact of coronavirus.

"Construction and manufacturing are key areas but the crisis has also highlighted the importance of remote working to business viability.

"The shutdown to halt the spread of Covid-19 is having a dramatic effect on the whole of the º£½ÇÊÓƵ economy and certain regions are expected to weather the storm better than others."

Despite claiming that the º£½ÇÊÓƵ economy is losing £2.7 billion a day in absolute terms, the Irwin Mitchell report says some sectors such as agricultural, forestry and fishing, along with the

information and communication sector, have remained strong with a relatively low daily GVA fall of 14 per cent and two per cent respectively.