Many firms fear closure due to the epidemic

More than a third of North East businesses fear they could be forced to close as concerns mount over for the economy’s post-coronavirus recovery.

According to the latest figures, just three per cent of firms in the region say they were not affected by COVID-19 pandemic, which saw about a quarter of workers furloughed.

One of the industries fearing for its long term future is the construction sector, which has bounced back but still faces “uncertainty over future demand”.

“A few weeks ago the Prime Minister made a speech about ‘building back’, very soon after a call for ‘shovel-ready’ schemes,” said Vince Taylor, economic lead officer at the North East Combined Authority (NECA).

“Construction schemes are about trying to kick start the economy again, with £47million allocated to the North East.

“Those schemes were put together very quickly from existing, well-developed schemes that weren’t completely funded and that extra money will make the difference, in terms of making up the funding gap.”

Mr Taylor was speaking at a meeting of the NECA Leadership Board.

He added the government expects such projects to be turned around within 18-months, a requirement he called “very challenging”.

Earlier this month the North East was awarded £47million from the government’s Getting Building Fund, which is intended to kick start an economic revival.

Ministers have allocated a total of £900million for “shovel-ready” projects in England.

Tees Valley mayoral authority is due £17.4million.