Chamber reaction to employment statistics

Written by

Commenting on today’s publication of labour market statistics for the region, North East England Chamber of Commerce Policy Adviser Niamh Corcoran said:

“The numbers released today offer hope that economic indicators are beginning to head in the right direction, with North East unemployment declining and employment rising. It is without a doubt that the Government’s Job Retention Scheme has had a key role to play in this, by protecting jobs and livelihoods during the two waves of the pandemic.

“Whilst the figures today offer early signs of a stabilising labour market, it’s important we do not become complacent. As lockdown eases, a number of sectors, such as culture and retail, are yet to bounce back. It will likely be a long process for those sectors to return to pre-pandemic levels of capacity and employment growth.

“Today’s national statistics also expose the disproportionate impact of the crisis on young and older workers. Long term unemployment is rising at its fastest rate since 2010, with unemployment for young people and the over 50s at the highest rate in five years.

“As the labour market begins to stabilise, it is vital that Government takes action and makes concerted efforts to bolster deeply impacted economic sectors and prevent young and older workers from falling into long-term unemployment”.

The Chamber’s comment on employment statistics

Written by

Niamh Corcoran, policy adviser, North East England Chamber of Commerce said:

“Employment statistics released today continue to show the labour market in a relatively stable state, likely due to the support of the Job Retention Scheme. Overall, the region’s employment rate grew, and unemployment rate fell marginally over the quarter.

“With the furlough scheme successfully protecting jobs, it is distorting the true picture. It is likely that the full extent of the pandemic’s impact on the regional labour market will only be clear once the scheme is wound down. It is at that point that Government will need to act quickly to mitigate spikes in regional unemployment.

“Worryingly, today’s national data exposes the significant impact of the pandemic on the employment prospects of young people. In the UK, more than half of those losing their jobs over the last year were below the age of 25, and 78% were under 35. With young people bearing the brunt of the crisis, the Government should urgently extend the Kickstart Scheme and strengthen the apprenticeships system to increase the opportunities for young people.”

Chamber comment on April roadmap update

Written by

​James Ramsbotham, chief executive, North East England Chamber of Commerce said:

“We broadly welcome the Prime Minister’s announcements today. The intention to look at travel restrictions and when they can be lifted is good news but they must be done in a way to build confidence.

“The covid vaccine passport idea for venues is similarly a useful idea although not a complete panacea as some people are unable to have the vaccine and we can’t penalise them because of that fact. We also have to mindful of people who may need support because they are frightened of going back into the world at large.

“Opportunities for twice weekly testing are beneficial up to a point but will never be a substitute for the effectiveness of mask wearing and distancing.

“We need to ensure restrictions are relaxed in a considered and reassuring manner to build confidence and not risk damaging reversals, especially at short notice. Hospitality businesses in particular must be allowed to open and then be supported to stay open.”

Chamber urges Government to put businesses at heart of road map  

Written by

James Ramsbotham, chief executive, North East England Chamber of Commerce said:

“It is helpful Government has begun to set out the direction of travel for lifting current restrictions. There is now an urgent need for a corresponding road map specifically for businesses. They must have detail on how they will be supported tocome out of lock down measures.

“I understand it is important for people’s well-being to be able to meet up socially in the coming weeks but I would argue it is also extremely important that our economy is supported to get back on track. 

“It would be beneficial if there were more regular updates on this ‘road map’ so businesses can see clearly if there will be a shift due to any changing circumstances.   

“There also has to be proper briefings for businesses going forward rather than employers planning their futures from leaked information in newspapers.  A further important part of coming out of lock down successfully is ensuring Test and Trace’s potential is fully realised, to deal with localised outbreaks.”

Chamber calls on Chancellor to make levelling up a reality

Written by

With a month to go until the Chancellor delivers the Budget on 3 March the North East England Chamber of Commerce has laid bare the challenges regional businesses face and what is needed to support them.  

In its Budget submission the Chamber highlighted the fact that the region has been under some of the most stringent and long-lasting Covid-related restrictions in the UK which had put huge strain on consumer facing sectors such as aviation, retail, leisure and hospitality.  It set out the expectation the Chancellor would maintain vital Covid support measures and also highlights a series of urgent issues that require investment including transport and broadband infrastructure.

Jonathan Walker, Chamber director of policy said: “Prior to the pandemic, the economic, wealth and wellbeing gaps between the North East and other parts of the country were unacceptable.  Covid-19 has only worsened this situation, with the Government’s stated goal of ‘levelling up’ regions such as ours never seeming so important and urgent.”

“This Budget must contain measures that will prevent unnecessary business failures and protect jobs until a recovery can be sustained.  We need to see significant extension of the Job Retention Scheme, with a tapered reduction of support as restrictions are lifted, an extension of business rates support and continued backing of Coronavirus loan schemes.

The Chamber letter said there should be rapid deployment of localised funding through councils for areas that remain in the highest Covid-related Tiers.  It also called for a full review of the range of Government support to ensure it no longer excludes large numbers of small businesses. 

Further demands include Government specifically mandating all departments and arm’s-length bodies to place rebalancing at the heart of their spending decisions.

The Chamber also stressed the importance of continuing talks with North East authorities about further devolution and the relocation of senior civil service roles to the region.

The regeneration of the region’s housing stock and refocussing of town centres are also Chamber priorities to support the North East’s position as a vibrant place to live and work.

The Chamber was established to support members’ international trade and the submission sets out urgent measures needed to ensure businesses are able to export to the EU easily and successfully following Brexit.

Jonathan Walker said: “Our mission is not just to repair the damage done to our economy in recent months. It is to come back stronger. We must correct historic unfairness, tackle inequalities and show the world our full capability. The right investment in our region by Government and businesses alike will deliver huge social and economic returns.”

Chamber member Fujifilm secure vaccine manufacturing contract

Written by

Jonathan Walker, director of policy, North East England Chamber of Commerce said:

“The Fujifilm vaccine announcement is tremendous news for not just the company themselves but the whole region. It is a great testament to the management team, their workforce and the proud history of scientific innovation in the Tees Valley. We wish them every success with this important contract.”

Business has a role to play in building a resilient region

Written by

Arlen Pettitt’s latest column for the Journal

I’m sure most of you saw the news last week that in the North East we’ve made such progress with the rollout of the Covid vaccine that we’ve put the rest of the country to shame.

While this has resulted in a frustrating situation where the Government has diverted vaccine supplies elsewhere in an effort to catch other regions up, it’s still a roaring endorsement of what we can achieve here when decisions, materials and resources are localised.

The North East entered the pandemic in a far more vulnerable state than some of our fellow regions.

At the beginning of 2020, our economic inactivity rate was the highest in the country – 22.9% – and 28.4% of those were economically inactive due to long term sickness, again well above national average.

Life expectancy in our region is about 18 months behind the UK average, with high levels of smoking and alcohol-related conditions, as well as cancer and cardiovascular diseases.

These are huge socio-economic, inequality-driven issues which will take generations to address.

But we still have a responsibility to do everything we can, as soon as we can.

This pandemic may be the first in a hundred years to have this scale of impact, but it won’t be the last.

At the beginning of 2019, the World Health Organisation (WHO) ranked a global influenza pandemic on its top ten threats alongside climate change and diseases such as diabetes, cancer and heart disease.

At the time, the WHO said “the world will face another influenza pandemic – the only thing we don’t know is when it will hit and how severe it will be.”

That risk will remain after this, but we can take the lessons we’re still learning this time to be better prepared for next time.

A key thing we can do is build a more resilient population by focusing on public health in the workplace. That means getting to know our workforce better, being flexible where we can and investing in supporting them.

There’s plenty of help and expertise available.

At the Chamber, we’re delivering a series of webinars and other activity in the next few weeks aimed at promoting the role of business in health.

A first step for us is partnering with Cancer Research UK on 4 February to help launch their Business Beats Cancer Newcastle campaign, I’d urge as many people as possible to join us.

Marianne discusses the first weeks of 2021

Written by

Marianne O Sullivan’s latest Journal Column.

We start 2021 with a return to lockdown restrictions and a new strain of Covid but now with the rollout of the vaccine there is hope that there will be a way out of the pandemic.

With these measures the next couple of months will be difficult for everyone, so a focus on mental health support and building resilience will be essential. One of the most obvious challenges will be people who again need to balance caring responsibilities with their workloads. We know this will also have a disproportionate impact on women with a survey carried out by a group of women’s organisations across the UK showing that twice as many mothers as fathers say they will have to take time off, with no pay, due to school closures. Again, the importance of flexible working and the flexible use of furlough for those unable to work from home, will be important to ensure that employees are able to continue with their careers.

The closure of schools has also highlighted again the digital divide in the North East. According to new analysis from the Northern Powerhouse Partnership, based on data from Ofcom and ONS, there are at least 55,000 families in the North East without access to a laptop, tablet or desktop computer, many others will be without access to the internet.

The Laptops for Kids campaign running in the North East in conjunction with Chamber member Northumbrian Water is looking for businesses across the region to donate unused laptops, PCs, tablets and chargers, which will then be professionally wiped before they are distributed out to families in need. This will be essential in ensuring that all children in the North East will be able to continue with education and we encourage any businesses with unused equipment to get involved in the campaign.

Businesses have again been hard hit by these new restrictions; some grants are in place however many are still excluded from Government support which needs to be urgently rectified. Our survey of members in the last quarter of 2020 highlighted cashflow as a key concern for businesses which will continue to be an important issue with the new restrictions. We need to see business support increase in line with more restrictions and for the Government in their March Budget to set out how the levelling up agenda and the desire to build back better will help the North East to recover.

Chamber comment on today’s employment statistics

Written by

Jonathan Walker, director of policy, North East England Chamber of Commerce said: “This morning’s statistics provide further evidence of the continued disproportionate impact of Covid and the economic crisis on our region. We have the highest unemployment rate in the country and have also seen the largest fall in employment. 

“With our region currently in the top tier of Covid restrictions and  the risk of a disastrous no-deal Brexit on the horizon, the potential for further economic pain is very real. While we look to 2021 with some hope of an improvement in fortunes later in the year, we need to see real large-scale action by Government.  It must make good on its ‘levelling up’ promises to start to undo the damage done to the North East economy. 

“This starts by getting a trade deal with the EU, providing a pathway for our businesses out of Tier 3 and continuing to change Government thinking to support investment in our region.” 

Coronavirus and your financial health

Written by

Three tips from Brewin Dolphin for what you can do now to look after your financial future.

The impact of the pandemic has been widespread. People, businesses, and economies have all been hard hit. The road to recovery is likely to be bumpy for all. But what does this mean for our pensions and investments? What can we do right now to safeguard our financial future?

Firstly, keep calm and take the long view

Remind yourself of your goals. Why are you saving and what is it for? When are you likely to need to draw an income or utilise the funds? For those with time on their side, history shows that markets typically rebound, given time. Although there may be further bumps ahead, cashing in your investments during a downturn will cement losses on those that have fallen without giving them time to recover. Also, if you have been making regular contributions to your investments try to continue doing so to benefit from compound interest, pound-cost averaging, and long-term returns. These factors will gradually help to get your finances back on track and provide some protection from the ebbs and flows of the markets over time.

Secondly, consider whether your nest egg is diversified enough

A mix of investments such as cash, bonds, and equities, typically offer the best protection against the downs and ups of the market. By also looking at industrial sectors and geographical regions, you can further diversify your risk and returns. Positioning your nest egg to benefit from a range of investment returns can help it withstand shocks. For example, you could add funds that are designed to minimise downside risk such as absolute return funds. Or increase your exposure to corporate bonds and gilts. If you are unsure about doing this yourself, an adviser can help you build a portfolio with a broad spread of investments to suit your appetite for risk. Many advisers also have ready-made portfolios suitable for a range of risk profiles that can help you get started.

Thirdly, make the most of your tax allowances

You can place your investments in tax-efficient wrappers such as ISAs and personal pensions to benefit from tax-free income and gains, which could build a substantial investment pot over time. Personal pensions are particularly effective at growing a long-term nest egg as you can benefit from tax relief at your marginal rate. This can mean an extra 20-45% boost to your ring-fenced pension savings.

If you still feel that you are not on track you can seek help

If you are unsure about your next steps and would like some expert help, an adviser specialising in long-term saving can help you plan ahead. Understanding your appetite for risk and your target retirement date, can enable you to make the best decisions today to safeguard your financial future.

https://www.brewin.co.uk/

@BrewinDolphin

The value of investments and any income from them can fall and you may get back less than you invested. Past performance is not a guide to future performance and performance. Opinions expressed in this document are not necessarily the views held throughout Brewin Dolphin Ltd. This information is for illustrative purposes only and is not intended as investment advice. No investment is suitable in all cases and if you have any doubts as to an investment’s suitability then you should contact us. If you invest in currencies other than your own, fluctuations in currency value will mean that the value of your investment will move independently of the underlying asset. Please note that the information in this article is for information purposes only and does not constitute advice. While we believe it to be correct at the time of writing, Brewin Dolphin is not a tax adviser and tax law is subject to frequent change. Tax treatment depends on your individual circumstances; therefore, you should not rely on this information without seeking professional advice from a qualified tax adviser.The information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness.Brewin Dolphin Limited is a member of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority (Financial Services Register reference number: 124444).