A range of welcome initiatives to support business during the Covid 19 crisis have been introduced. It’s an important series of interventions but it’s not clear if, while resolving problems in the short term, their combined impact may mask longer-term issues.
The interventions offer an important blend of support for both people and businesses including:
HMG have acted because they want businesses and people to ride out the situation and then recover/be self-sufficient but many businesses may fail and employees may be out of work. A worrying scenario emerges, with the prospect of a huge increase in unemployment with lower skilled workers/those in face to face customer contact roles particularly vulnerable to job loss.
A traditional response to this could be to:
Problems with this approach exist because:
HMG may want LEP’s and local authorities to offer support/stimulus via review and iteration of local economic development activities and local industrial strategies through a Covid-19 lens, and to deliver any required support via Growth Hubs/existing mechanisms. However, there may generally be a lack of capacity to do this, so outside expert resource may be helpful/required to add capacity, knowledge, skill experience and expertise. This shares the workload and brings in fresh thinking…both of which may possibly be helpful.
There are many issues involved, and carefully designed support mechanisms will be required to address them. It is important that a blended set of solutions is developed involving support for:
High growth knowledge driven sectors (low numbers of business but with high GVA jobs)
Given the unprecedented situation we face all options should be considered. One thing is for certain, just pinning our hopes on channeling funds into start up and/or high growth scale up businesses is not the whole solution, as on its own it will leave gaps.
HMG, Local Authorities and LEPs will need to review LIS, Growth Hub and other economic development strategies/activities to meet the new economic landscape, address the needs of the people/businesses requiring most support, and plan delivery of appropriate services. Action to design and plan for implementation of the required support is needed now.
Deyton Bell specialise in economic development and business support issues and have provided associated services to over 40 different LEPs and Local Authorities in recent years. We are already supporting every LEP across the East Midlands, South East and East of England on various Covid-19 and economic development issues. We believe there is going to be a huge need, and great demand for, post-Covid economic development and business support, and we would urge all involved to prepare the way for this asap to avoid delays.
To discuss any aspect, please contact Neil Darwin, Director and Chief Economist
via: email@example.com or on 07860 – 663234.
Alternatively, you can of course also contact any of our other Directors as follows:
07747 – 468733
07990 – 587597
07730 – 718218
BACKGROUND The Chancellor delivered a review of spending at a time when, as he put it, the health emergency is not over and the economic…
The Directors of Deyton Bell today announced changes to our Board – with immediate effect: Neil Darwin is appointed as Managing Director and Chief Economist…
Deyton Bell was established 15 years ago today – we are proud to have reached this milestone.