North set to bear brunt of crisis

Impact of virus to hit ‘Red Wall’ towns twice as hard as the South, says report

COMMUNITIES IN the North of England will be hit more than twice as hard by the economic impacts of coronavirus than parts of the South, new research published today has revealed.

The recession caused by the crisis, which Chancellor Rishi Sunak acknowledged this week would be “the likes of which we have never seen”, will see an average fall of 12 per cent in permanent losses in economic output over the next five years across the so-called “Red Wall”, the Centre for Progressive Policy found.

It means areas in the North and the Midlands would be hit harder than communities in the SouthEast, which would see average losses of five per cent.

Nationally, an eight per cent drop is predicted.

The report also found average annual earnings in the 20 poorest local authorities would fall from £18,580 to £17,340 in real terms over three years.

Henri Murison, the director of the Northern Powerhouse Partnership lobbying group, said: “These projections make it even more important that the Government take the opportunity to invest heavily in the Northern Powerhouse to drive forward the UK economy as we emerge from this horrendous virus.”

Ministers have been quick to reaffirm their commitment to the North, as it was feared the crisis could cause them to renege on election promises. ‘The Red Wall’ crumbled at the General Election in December in the face of the Tories’ advance, and the party has pledged to “level up” prosperity across the UK. The Government said it remained committed to improving life across the country, with Prime Minister Boris Johnson stating the Government will pursue “an agenda of uniting and levelling up across the whole of the UK”.

Public Health England data released yesterday showed Yorkshire and the Humber had the most cases of coronavirus in England in a 24-hour period.

The region had 30 out of the 79 cases diagnosed nationally from tests taken on Monday, while London reported none.

Some 2,329 people have now died after testing positive for coronavirus in Yorkshire, up by 22 yesterday. Nationally 35,341 people have now died, a rise of 545 yesterday.

Communities Secretary Oliver Dowden reported the figures as he announced the launch of a taskforce to help the arts, sports and digital sectors respond to the crisis.

Charlotte Alldritt, the Centre for Progressive Policy’s director, said: “While policymakers are rightly concerned with the immediate economic shock of coronavirus, history has taught us recessions have deep and long-lasting effects, which are rarely spread evenly across the country.”

She added: “The Government had already signalled its intent to ‘do right’ by voters who had lent them their vote, but these communities have been let down by successive governments in the past.”