Council and businesses warn of "soaring unemployment" unless Sheffield's economy gets back on track

Council chiefs say if the economy is not addressed it could lead to soaring unemployment with knock-on impacts on health inequalities and people’s wellbeing.

Sheffield Business Response Group, made up of the representatives from both the council and the private sector, has set out a recovery plan after what it describes as a "very challenging" six months.

A report says: "Those in sectors most reliant on social interaction, such as retail, hospitality and culture, have faced dramatic reductions in demand, with many closing temporarily or operating at significantly reduced levels.

"The vast majority of business sectors are experiencing lower demand owing to increased uncertainty. Over 40 per cent of businesses recently surveyed are looking to scale down their operation in the coming months.

"We enter the autumn with warnings about a second wave of the virus, creating further uncertainty and anxiety for the city.

"The scale of the economic impact is only just becoming clear, as the UK enters the deepest recession since records began.

"This recession will have knock-on effects for people’s wellbeing and we also know social inequalities are widening. We need to act now to reduce the worst effects on our society.

"Supporting businesses through this period is essential to help retain jobs and incomes. Without mitigating action at all levels of Government, unemployment is likely to soar."

The group says demand for support has been "vast" with the council distributing £100 million in grants.

Business Sheffield has responded to over 6,000 calls and provided 3,000 1-2-1 business advisor sessions since March to help companies remain solvent through lockdown.

The report says continued support at a city, regional and Government level will be crucial to helping the city stay afloat, as businesses wait to see what impact Tier 2 restrictions will have.

"Many businesses are looking for new ways to operate. Opening up and trading safely is a top priority, yet this is often not sufficient to regain pre-Covid levels of economic activity.

"Businesses are seeking to explore new markets, work more digitally and remotely and invest in new equipment to increase productivity or deliver new products.

"Those businesses able to make adaptations and flex to changing consumer needs have a more positive outlook.

"However, it is clear that restoring consumer confidence is critical to retain jobs and maintain incomes.

"We need to take immediate action to promote consumer confidence, help businesses to adapt and survive and ensure that the foundations for economic renewal are not eroded during this unprecedented time."

The group has come up with a six point plan to:

1, Stimulate demand in the local economy

2, Open the city and district centres safely and securely

3, Develop a skills base as training and education are disrupted

4, Encourage more start-ups

5, Stimulate investment in culture and rebuild visitor numbers

6, Work on a longer term economic strategy.

The full report can be read here.