Covid-19: urgent measures needed to save north west economy

The impact of the coronavirus on our society has been swift and devastating.

As has so often been said, this is not only a public health crisis but an economic one.

Businesses and organisations across the North West are under immense pressure, with issues like cash flow at the fore of their concerns. Thousands of workers have either been laid off or furloughed on the government’s coronavirus Job Retention Scheme, and households across the region are understandably anxious about what the future holds.

A UK-wide recession is all but a certainty at this point. Recent figures suggest that the UK economy could shrink by up to 35% in the next quarter, while the Northern Ireland economy is facing its fastest ever decline, according to Ulster Bank.

As the smallest regional economy in the UK, Northern Ireland will need direct, comprehensive and bespoke solutions from the government to keep our economy afloat.

The Chancellor Rishi Sunak responded quickly to the economic impact of this virus and spoke of launching an unprecedented rescue package for affected businesses and workers.

However, while initially welcomed, it has become clear that these schemes are incomplete and not reaching everyone.

According to a recent survey carried out by us and our colleagues in the Belfast, Causeway, and Newry Chambers, fewer than a fifth of businesses have applied to the government’s Business Interruption Loan scheme whilst less than half are eligible for the Executive’s grant schemes.

Around 80% of businesses also plan to use the government’s furlough scheme to protect jobs but immediate certainty is needed over when these payments will begin to reach businesses.

The Chamber has engaged frequently with the Executive, including the First and deputy First Ministers, the Economy Minister and the Finance Minister. We welcome the business rates holiday announced by Finance Minister Conor Murphy, but we need to see this extended for a longer period than three months.

And, while grant schemes were announced by Economy Minister Diane Dodds to support hospitality and retail businesses, it is already clear that there are significant gaps. Social enterprises, charities and those who are multiple premises owners are just some who have fallen through the cracks so far.

Speed is of the essence to ensure that our SMEs don’t go bust waiting for cash and we urge the Executive to process these applications as swiftly as possible.

An extra £40m has also been set aside by the Executive for further support for businesses. We need urgent clarity over how this is to be spent and when. More support is needed to save our economy and it’s needed now.

The Chamber represents a diverse range of businesses across the NW in every sector including manufacturing, retail, hospitality, tourism, healthcare, IT and professional services. No industry has avoided taking a hit in this crisis. Our members have reported the decimation of turnovers and revenues, the slashing of daily footfall, and significant changes to how they operate.

But our business community is resilient and filled with talented, compassionate workers and leaders. Our local economy will recover from this crisis, but we need further support for that to happen. We welcome what has been done so far to help, but more is needed to ensure local businesses survive.