Businesses ‘are braced for redundancies’
Warning as council fights back against Covid
More than 40 per cent of businesses in East Renfrewshire believe redundancies are likely over the next three months.
The statistic was revealed in a report to the council’s cabinet, which sets out plans to combat the impact of Covid-19 on the area.
The local authority has surveyed local businesses and residents to help “fully understand” the influence of the pandemic.
The report states Covid- 19 is “causing unprecedented disruption to the economy”.
It adds unemployment benefit claims rose from 950 in February this year to around 2300 people currently.
“This is the third highest percentage rise for any council in Scotland.
“This is clearly concerning and requires further analysis to understand the issues surrounding this.”
There has also been a “significant increase” in the number of young people, between 16 and 24, claiming out of work benefits.
The figure has increased from 175 in February to 515 by the end of June.
“Early indications are the changes in the labour market brought about by Covid-19 will have the biggest impact on those on the lowest incomes and in the least secure jobs.”
The report adds young people, women, those with disabilities, minority groups, those with criminal convictions and people over 50 are expected to be “disproportionately” affected.
“Key actions” to respond to the economic downturn have been planned.
They were developed following feedback from an “informal, cross-party” renewal group, which included council leader Tony Buchanan and deputy leader Paul O’Kane.
The plans include helping local businesses through existing schemes, such as the council’s economic development team’s grant and loans programme, and encouraging business start-ups.
Businesses on high streets and in town centres will be provided with social distancing materials, risk assessments and training to “adjust to the ongoing uncertainty” over the phased easing of lockdown restrictions.
And a Shop Local marketing campaign aims to “encourage spend in our town centres”. This will include leaflet drops and social media posts.
Labour market programmes, described as “bespoke”, are set to be provided to “upskill” and “reskill” the workforce and safeguard apprenticeships.
The Work EastRen team, the council’s employability service, will participate in a new job matching website - c19jobs - in a bid to reduce unemployment.
The report adds: “In due course, when the potential economic impacts and implications of the coronavirus issue are clearer and better understood, a more detailed and forward- looking economic recovery and renewal plan will be prepared.”
It will look at the possibility of accelerating economic infrastructure investment programmes.
“This may include amending existing investment plans and timelines to respond to Covid-19 and agree new priorities to support renewal/building better, and not just recovery.”
More than £ 9m has been distributed by the council to local businesses over recent months and an initial £ 100,000 from the Transport Scotland-funded Spaces for People programme is being used to provide more space for physical distancing in public places.
It is hoped the changes will “encourage people to walk or cycle while Covid-19 restrictions remain in place”.