JUST A THOUGHT

Despite the devastation wrought, Covid-19 also brings about economic opportunity, says Cornwall & Isles of Scilly LEP chief executive, Glenn Caplin-Grey

The coronavirus pandemic continues to have profound and unpredictable impacts on the economy of Cornwall and the Isles of Scilly.

Between March and June this year, the number of Universal Credit claimants almost doubled to more than 48,000, with hotspots in tourism-dependant areas like Newquay among the worst affected.

Cornwall and Scilly as a whole have felt some of the greatest economic impacts in the UK with key sectors like tourism, food and drink, retail, construction and arts and culture having some of the highest levels of furloughed workers. The crisis has accelerated the trends we have seen over the past decade with online retail presenting significant challenges to the vitality of high streets. Changes to policy will need to accelerate just as fast to meet the challenge.

By the end of June there were almost 80,000 people on the Coronavirus Job Retention Scheme across Cornwall and Scilly, which is 35% of the eligible workforce and one of the highest take-up rates in the UK.

It’s the same picture for Cornwall’s 40,000 self-employed people, who make up significantly more of the local workforce (23%) than nationally (16%). Over 30,000, or 75% of those eligible, claimed £85 million of support grants as of June 30.

At the time of writing, both these schemes are due to come to an end in October, bringing risks to employment and businesses across Cornwall and Scilly, especially those that have been unable to make sufficient

ROAD TO RECOVERY RECOVERY

money during spring and summer and may clear that the impacts of coronavirus differ not survive the winter. from region to region, and what’s required It’s clear the structure of our local economy means Covid-19 is having a bigger impact is a differentiated regional response to aid recovery. on Cornwall and Scilly than perhaps any Covid-19 has been a grim harbinger of some other part of the UK. In employment terms, of the pressures we might see as a result of this means the region is carrying a lot of risk Brexit, depending on the shape of the final into the Autumn despite the very welcome deal with the EU, such as labour shortages Government support to business. and export restrictions. But it has also For the LEP our focus has been on tackling the immediacy of the crisis while looking towards recovery and beyond. By working shown that we can adapt, innovate and do things differently, and embrace the value of economic localism versus globalisation. with business we have provided Government That’s why the Government’s imminent with crucial real-time data about coronavirus recovery and devolution White Paper will impacts to help shape policy, and have be vital to shaping continued investment at lobbied for more a local level, especially when it flexibility from the comes to tackling the long-term support schemes threat of climate change. on offer, including part-timing working while on furlough and discretionary business grants. Changes to policy will need to accelerate It’s also an economic opportunity, which is why the LEP’s Local Industrial Strategy has a ‘green recovery’ at its heart, and why we have chosen to invest a large We have provided just as fast proportion of our recent £14.3 direct assistance to Visit Cornwall and the to meet the million Getting Building Fund award in projects that support Cornwall Chamber of Commerce so they can challenge clean energy, geo-resources including lithium extraction, and a continue to support Housing Retrofit Programme which local businesses, will deliver social benefits as well and have put more as jobs in the supply chain. resources into the Cornwall and Isles of Scilly Growth Hub to ensure it can respond to business needs, including managing the £1 million tourism kick-start fund. The coronavirus pandemic will end, and the economy of Cornwall and Scilly will recover. How fast will depend in part on the Government’s willingness to use its levelling up agenda to empower regions to invest in And we will continue to make the case for the businesses, skills and infrastructure that policies tailored to Cornwall and Scilly. It’s will drive future innovation and growth.