Economy Watch – the impact of a second lockdown will be hard on our economy

Our economic forecasts predicted a further potential fall in output by 26% under a second lockdown scenario. We are still taking stock of the impact and we will continue to gather intelligence from businesses to share with Government.

 

It will be a very difficult time again for businesses and sectors in our area who will be struggling to keep afloat despite the support from Government. In particular the aviation sector and the leisure and service industry are likely again to be the hardest hit. There will be a lack of resilience and reserves in many businesses and Government revenue funding won’t necessarily help. Director-run businesses and some other firms in our area got less support during the first lockdown and are therefore potentially at further risk.

 

The extension to the furlough scheme to March is welcomed; however, for some businesses that have taken difficult redundancy decisions already this will have come too late. We are aware of significant redundancies that have been announced recently in the Coast to Capital area including at Gatwick Airport our biggest employer. Unemployment, in particular among the younger workforce, will rise across our area and there will need to be coordinated reskilling opportunities. It is clear that this will shape our economy and requires Coast to Capital to play an even more important role in supporting our region through this difficult period and its sustainable recovery.

 

Support for Business

 

Our enhanced Growth Hub is expertly positioned to support businesses through this difficult time and with the challenges face by the UK’s transition from the EU. Our team of Growth Relationship Managers work with businesses to understand their needs and identify solutions. They can help find funding, facilitate growth strategies and connect clients with partner providers of support.

 

The Growth Hub Team continue to maintain the COVID-19 and UK Transition section of the Growth Hub Portal with links to available support. We also update our events pages on the Growth Hub website to include information from membership organisations, the private sector and business support providers.

 

Contact the Growth Hub team today through the Growth Hub Contact Form.