10 minute read
Economy
Former Secretary of State backs the region
A former Secretary of State for Business has backed firms in Coventry and Warwickshire to bounce back strongly from the economic impact of coronavirus.
MP Greg Clark told a Coventry and Warwickshire Chamber of Commerce #PolicyHour video call that the recovery from the Covid-19 pandemic will present opportunities for growth in the region.
Asked about the impact of Covid-19, Mr Clark said the recovery from the pandemic would accelerate plans to upgrade transport and communications infrastructure, as well as boosting a competitive business environment.
“Covid is not going to completely change some of the forces that were present before the pandemic struck,” Mr Clark added.
“What I think it is actually going to do is accelerate some of them, for example with the development of vaccines.
“It seems to me that we are going to see an acceleration of trends in a number of areas and I think that sense of acceleration is going to be very important.
The Tunbridge Wells MP answered questions on a range of topics from the easing of coronavirus restrictions to HS2.
Mr Clark said that he has been “a strong supporter” of the HS2 railway project and that it would improve connectivity, including in Coventry and Birmingham.
Mr Clark also backed the government in taking a cautious approach to the easing of coronavirus restrictions, and said that decisions should be based on “data rather than dates”.
Sean Rose, policy officer at the Coventry and Warwickshire Chamber of Commerce, said: “We are grateful to Mr Clark for joining us at our #PolicyHour video call and answering questions on a wide range of topics.
“As a Chamber, we are doing everything we can to support businesses in the recovery from the pandemic as the final Covid-19 restrictions are eased.
Promising economic signs despite GDP drop
Business leaders in Coventry and Warwickshire say there are “promising signs” despite the economy shrinking in the first quarter of the year.
The latest GDP figures showed that the economy fell by 1.5 per cent in the first three months of 2021.
However, the figures for March saw a rise of 2.1 per cent as lockdown restrictions began to ease.
Sean Rose, policy officer at the Coventry and Warwickshire Chamber of Commerce, said: “The economy has, undoubtedly, been severely impacted over the past year and there is little surprise that it dipped again in the first quarter of the year because of the restrictions in place due to the lockdown.
“As those have eased, we saw the economy start to rebound in March which shows promising signs and with further lifting in restrictions taking place in line with the government roadmap, we’d anticipate further growth in the coming months.
“What isn’t clear is just how quickly the economy can return to the level it was at before the pandemic hit and it is crucial that the government continues to nurture the recovery.
Suren Thiru, head of economics at the British Chambers of Commerce (BCC), said: “While the UK economy contracted in the first quarter, the downbeat headline figure masks a renewed momentum through the quarter from January’s drop in output to an exceptionally strong March outturn as lockdown measures started to ease.
“The first quarter decline should be followed by a robust rebound in the second quarter as the effects of the release of pent-up demand, as restrictions ease and the strong vaccine rollout continues, are fully felt. “However, with the longer-term economic damage caused by coronavirus likely to increasingly weigh on activity as government support winds down, the recovery may be slower than many, including the Bank of England, currently predict.”
Sean Rose, Policy Officer
Actions need to speak as loud as words, warns Chamber
The Chamber has urged the Government to match rhetoric with action after a raft of business measures were announced in the Queen’s Speech.
The Government included improved skills training, reform of the planning system, more housebuilding, boosted public transport and increased connectivity in the measures it plans to bring forward in the coming months.
The Coventry and Warwickshire Chamber of Commerce said that all the policy areas were relevant to helping companies recover from the recession caused by Covid, but added that similar promises had been made before.
Sean Rose, Policy Officer at the Chamber, said: “We welcome measures such as an increased focus on skills to match market needs, and reform of the planning system – but these and other areas have been at heart of Government announcements in the past and clearly have not had the desired impact.
“We are just really keen to see rhetoric matched with action because while businesses have shown great resilience and flexibility in the way they have handled the recent challenges, they need targeted, relevant and practical help as they continue to pull us out of the economic slump.
Claire Walker, Co-Executive Director of the BCC, said: “Businesses will welcome the clear direction in today’s Queen’s Speech as the Government looks to boost the economy and place all parts of the UK on an equal footing.
“As companies begin the slow process of rebuilding following the pandemic it is vital that they are given the support they need to kick start their recovery.
“A strong focus on improving digital and technical skills that match the needs of local business will be a key driver in making that happen.
“Improving rail and bus services, maximising the national coverage of 5G mobile services and superfast broadband, while simplifying the planning system are important enablers to ensuring companies can rebuild and grow.
“These are all challenges that have existed for a long time, and we are now at a critical juncture where they must be addressed. This opportunity cannot be wasted, and the Chamber network will have a laser focus to ensure the Government delivers on its promises.
“It is disappointing that new employment legislation that could address the flexibility of working practices did not feature. The pandemic has changed the way we work forever, and employers need clear guidance on how to provide long-term flexible working arrangements that will make jobs more accessible for everyone.”
Firms will be flexible about flexibility
Business leaders in Coventry and Warwickshire say there will be no “one size fits all” policy to flexible working after a new survey showed the vast majority of companies will maintain some degree of remote working beyond the COVID-19 crisis.
The British Chambers of Commerce surveyed more than 900 companies about how they have kept trading during the crisis and what plans they have for future working practices.
Around 72 per cent of businesses said they expected to have at least one member of staff working remotely over the next year, while more than half of employees will have some home-working as part of their routine.
However, the mental health of staff was cited by 55 per cent of companies as a barrier to remote working, while meeting customers and the necessity for staff to be present to operate equipment were also factors in the need for workers to be in the workplace.
Louise Bennett, CEO of the Coventry & Warwickshire Chamber of Commerce, said the survey demonstrated that there was no “one size fits all” model.
“Sector plays a huge part with only 54 per cent of business-toconsumer (B2C) companies able to offer any sort of remote working options, whereas the figure is at 80 per cent for business-tobusiness firms (B2B).
“It is clear that business has, in the main, flexed incredibly well to keep trading and that has taken varied forms, be it remote working or staggered hours and there is no question that will shape employment patterns going forward.
Business leaders in Coventry and Warwickshire say the region will be a major draw for visitors across the country as the economy reopens.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, believes the city and the county are perfectly placed to attract tourists from all over the UK in the coming weeks and months.
Louise said: “With more businesses now able to open after the lifting of further restrictions, Coventry and Warwickshire is the place to be this summer.
“It’s great to see so many of our hospitality and leisure operators being able to return to doing what they best – being open, trading and serving customers.
“Coventry’s year as UK City of Culture is now underway and is really helping to put the region in the spotlight – attracting national media coverage and special visitors such as the Prince of Wales and the Duchess of Cornwall this week.
“As restrictions lift further, we can expect to see more people heading to the city and the region to make the most of what City of Culture is going to offer – from live music to the Turner Prize.
“There is no denying that the past 14 months has been the most difficult period that businesses have experienced – especially those in leisure, hospitality and tourism.
Louise Bennett
Businesses facing recruitment issues as unemployment falls
The Chamber has welcomed a fall in unemployment – but say companies in some sectors of the economy are facing a recruitment headache.
Unemployment dropped from 4.8 per cent to 4.7 per cent in the three months up to April as the economy was slowly starting to reopen.
Tom Mongan, president of the Coventry and Warwickshire Chamber of Commerce, said the end of the furlough scheme could see an uptick in unemployment but that some areas of the economy are desperate to recruit.
He said: “Of course, we welcome the slight fall in unemployment but there is still a feeling that it is being slightly skewed by furlough and we’ll only really know the true hit once that scheme comes to an end.
“That said, I have been visiting businesses in Coventry and Warwickshire over the past couple of weeks and the feedback I am getting from the hospitality sector is that they need to recruit.
“The Government has postponed the full lifting of restrictions for a further four weeks but hotels, bars, restaurants and cafés will need to attract more new recruits when the economy reopens fully.
“It’s a combination of Covid and Brexit that has led to the shortage. Some people have found new industries while the hospitality sector has been closed down while many EU workers have returned home.
