Helston coronavirus: Businesses facing 'financial cliff edge and job losses'

Businesses in Cornwall are facing further pressure and will require more support as they cope with the national lockdown.

Mark Duddridge, chair of the Cornwall and Isles of Scilly Local Enterprise Partnership (LEP), warned that businesses were facing "a financial cliff edge and job losses" as a result of the new restrictions.

The LEP chair stressed that the business community backed the decision by the Government to move into another national lockdown but said that there would need to be further support to help keep businesses afloat.

He said that the LEP and the business sector in Cornwall recognised that "urgent action needed to be taken" to bring Covid-19 under control and said that the measures were supported.

Mr Duddridge said that there was also a welcome for the Government's business grants particularly for the hospitality, retail and leisure sectors which have been hit hard by the restrictions and forced to close.

But he said that there would be a need for more financial support and, in particular, for self-employed people who have missed out in previous schemes.

He said:

"This is the third national lockdown we are facing and there is hurt in the business community from a financial and emotional point of view.

"Many businesses were looking forward to the new year and hoping that things would get better. That optimism has evaporated rather quickly."

Mr Duddridge highlighted that despite the busy summer the visitor economy in Cornwall it was estimated that the loss in income was around £852million.

He warned that a further £70m could be lost to the local economy if the lockdown continues, as expected, through February half term.

And he said that if the lockdown continues into March the total loss to the Cornish economy over the year could reach £1billion.

He said: "Many businesses are looking really carefully at a financial cliff edge and job losses."

Mr Duddridge said that there was a need for business support measures given in 2020 to be extended – including rate relief and furlough schemes but said that there was also a need for support to be provided with a long term vision and not just to cover short term needs.

And he said that there needed to be more clarity provided by the Government around funding which could be provided through its levelling up programme and the Shared Prosperity Fund.

The LEP chairman said that it was hoped that the Chancellor's budget statement in March would provide more details.

Mr Duddridge said that businesses in Cornwall were also having to deal with new regulations as a result of Brexit and praised the support which was available to help those affected.

He said that any businesses which need support in relation to Covid-19 or Brexit should go to the Cornwall and Isles of Scilly Growth Hub.

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