Plea for further support as firms on a ‘financial cliff edge’

BUSINESSES in Cornwall are facing further pressure and will require more support as they cope with the national lockdown, says an enterprise leader.

Mark Duddridge, chair of the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP), warned that businesses were facing “a financial cliff edge and job losses” as a result of the new restrictions.

The LEP chair stressed that the business community backed the decision by the Government to move into another national lockdown but said that there would need to be further support to help keep businesses afloat. Mr Duddridge said that there was a welcome for the Government’s business grants particularly for the hospitality, retail and leisure sectors which have been hit hard by the restrictions and forced to close. But he said that there would be a need for more financial support and, in particular, for self-employed people who have missed out in previous schemes.

Mr Duddridge highlighted that despite the busy summer the visitor economy in Cornwall it was estimated that the loss in income was around £852million. He warned that a further £70m could be lost to the local economy if the lockdown continues, as expected, through February half term. And he said that if the lockdown continues into March the total loss to the Cornish economy over the year could reach £1billion.

He said: “Many businesses are looking really carefully at a financial cliff edge and job losses.”

Mr Duddridge said that there was a need for business support measures given in 2020 to be extended – including rate relief and furlough schemes, but said that there was also a need for support to be provided with a long term vision and not just to cover short term needs. And he said that there needed to be more clarity around funding which could be provided through its levelling up programme and the Shared Prosperity Fund.

The LEP chairman said that it was hoped that the Chancellor’s budget statement in March would provide more details.