WE MUST ACT NOW
As jobless total rises, Mayor says time has come to ensure North East economy recovers after Covid-19 crisis
A wide-ranging plan to help the North East economy recover from the coronavirus outbreak has been drawn together, with warnings of high unemployment, companies going bust and town centres falling into decline if nothing is done.
The plan from the North East Covid-19 Economic Response Group proposes support for green industries, an “Education Challenge” to improve schools and colleges in the region, help for people who have lost their jobs and backing for hard-pressed tourism and food companies.
The group brings together representatives from the North East LEP, the North East and North of Tyne Combined Authorities, business organisations, universities and transport bodies.
Published before new figures showed another rise in people in the region claiming unemployment benefits, the report says that 97% of businesses in the region have been impacted by the coronavirus, and more than a third are worried about potential closure.
It highlights the potential for “rapid unemployment, low pay, job insecurity, mental health challenges and wider social disruption,” with young people particularly at risk.
And among a range of recommendations to help reduce the harm that could be done to the region’s economy, the report calls for funding to be allocated to regional authorities to ensure the Government makes good on its promise to “level up” the regions of the UK.
Andrew Hodgson, chair of the North East LEP, said: “Mitigating and recovering from Covid-19 has become the greatest challenge of our time and the response from regional leaders has been nothing less than superb.
“The collaborative approach across the North East LEP, our Combined Authorities and the world of education and business has enabled us to quickly and thoroughly devise a framework for economic recovery which incorporates a set of practical issues and actions that are evolving in real time.”
North of Tyne mayor Jamie Driscoll said: “We’ve been hit hard by this crisis. Our key workers have done us proud, and our communities have stepped up. We need to act now to build a future that’s prosperous.
“We need jobs. Good jobs with good wages.
“That means getting investment in offshore wind, a low-carbon transport system and affordable housing. It means giving our youngsters the training they need.
“It means looking after the key workers who’ve seen us through this crisis. It means revitalising our high streets, supporting our established businesses, and nurturing new ones.”
The group said that the economic response will be co-ordinated with public health and transport leaders to ensure that the recovery is managed in a way that protects health while aiming to restore the region’s infrastructure, local economies and communities.
The plan considers the actions needed during the next six months as lockdown restrictions are released, the following period of up to 18 months as the region adapts to living with Covid-19, and then longer-term recovery priorities.
Priorities identified by the report include Government support for vulnerable sectors of the economy; boosting industries such as wind power, digital and pharmaceuticals; making town and city centres more pedestrian and cycle-friendly; and initiatives to keep high value science and research skills in the region.