MEMBERNEWS
How will the region recover from Covid-19?
Analysis in the latest Good Growth for Cities Index by accountancy giant PwC and think-tank Demos shows the UK cities and towns hardest hit by the economic fallout from Covid-19 are likely to make the fastest recovery – but they’re also expected to be worse off than at the beginning of the pandemic compared to more resilient places. PwC’s East Midlands market senior partner Alison Breadon (pictured) picks out the key details from the report in our region.
In the report, we see Leicester has been among the worst-hit places after finding itself in a local lockdown for much of 2020. Along with Nottingham and Derby, it is predicted to start its recovery sooner – despite still being worse off at the end of the pandemic than more resilient places. Nottingham and Derby both saw
their economies contract by more than 11% during 2020 but are expected to have the best levels of growth in 2021 – at around 5% and higher.
Despite the economic decreases
in the economies in Derby and Nottingham, other key findings show Derby has one of the lowest rates of workers on the Job Retention Scheme, placing only 6.4% of its workforce on furlough during 2020. Nottingham has the lowest
increase in the take-up rate of Universal Credit, at 2.6% between January and November 2020 – compared with Birmingham, which has the third highest increase since January 2020 at 4%. Leicester is expected to suffer
more economically in comparison to other cities in the Midlands, with a growth rate of -12.2% in 2020,
‘A broad brush approach to levelling up will not address the challenges facing the places that have been hardest hit’
compared with other cities such as Derby (11.7%). The high infection rate in the early parts of the summer has contributed to Leicester’s economic activity stagnating over this period. As a whole, cities in the East Midlands have performed well on the environment, owner occupation and income distribution measures on the index. However, this positive performance is also coupled with lower scores in skills, health and work-life balance. High unemployment rates,
especially for young people entering the labour force in one of the toughest economic environments, will make jobs even more competitive and potentially undermine social mobility efforts in the region.
‘LIVEABILITY’ IS THE EAST MIDLANDS’ BIGGEST POST- COVID OPPORTUNITY In terms of trends, we see the pandemic has led to people living their life much closer to home and the likelihood is some of these
lifestyle changes will stay for the medium term. Those living in the region will no
doubt value different things and those places that meet those needs will be the ones that bounce back quicker. This opens up opportunities for places that have advantages in terms of liveability and community, and where “price of success” factors, such as housing affordability, are less of an issue. Our report sets out a series of
recommendations for leaders from across the region and local government, as well as the private and third sectors, as they plan their recovery strategies. Taking a broad approach to economic wellbeing and building resilience will be essential to create liveable, vibrant places where people want to live, work and visit. The wider regions’ significant
growth over the past five years and long-term growth ambitions and investments in HS2, Coventry City of Culture and the Birmingham 2022 Commonwealth Games will
also encourage the right conditions for a recovery.
REINFORCING IMPORTANCE OF LEVELLING UP However, the pandemic has made us all more acutely aware of existing economic and social inequalities, and why it is so important to “level up” across the UK. It reinforces our view in Good
Growth for Cities of the necessity to look beyond GDP and headlines about the North-South divide to focus efforts on tackling the issues that really matter to the public – and local economies – such as skills, sustainable income, and health and wellbeing. A broad brush approach to
levelling up will not address the challenges facing the places that have been hardest hit. We need a precise approach
which considers the strengths and needs of individual towns and cities to build more resilience and drive a fair recovery across the UK. Given continued uncertainties,
particularly with the post-EU trading environment and unknowns around pandemic recovery, action is required so that levelling up is a reality – not an unattainable aspiration.
STARK FIGURES OF STORE CLOSURES
More than twice the number of chain stores closed in the East Midlands than those that opened last year, according to new PwC data.
Some 1,298 shops closed in 2020, compared to 611 openings – with
a net decline of 687 – the research compiled by the Local Data Company found. This contrasts starkly compared to 2015, when there were 750 chain
store openings against 887 closures. Retail parks witnessed the smallest number of net closures of any
location (77) in the East Midlands last year, compared to shopping centres (159) and, faring worst of all, high streets (490). Nationally, there was a net decline of 9,877 shop closures – with an average of 48 closing every day versus 21 openings in 2020.
14 business network April 2021
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76
