Agenda item

P Johnson delivered a presentation to provide the Committee with analysis of the main economic impacts of Covid-19 and its implications for the MCA. 

The presentation provided details on the Covid-19’s economic impact on jobs, young people, urban centres, and transport.

It was agreed that a copy of the presentation be circulated by email to Members after today’s meeting.  ACTION: P Johnson via C James. 

In summary, the following main points were noted:-

·        The number of employees current on the Government’s Furlough Scheme in South Yorkshire was low in comparison to other areas in the UK. 

·        The Claimant Count in South Yorkshire was 6.5%, which was higher than the previous Recession.

·        The urban centres within South Yorkshire had seen the biggest impact with regards to jobs in the retail, hospitality and leisure sectors due to Government lockdowns.

·        Some job sectors had grown in South Yorkshire during December 2019 to December 2020 (mainly in the health, education, construction and logistics sectors). 

·        Job postings online had seen a 17% reduction. 

·        Young people had been impacted the most by the pandemic, leading to redundancy.

·        Visits to UK highstreets and shopping centres had plummeted during lockdowns.  Bigger cities had been impacted the most.  People had been visiting towns, rather than cities. 

·        It was estimated that the percentage of Sheffield residents in employment able to work from home was in line with national trends.  This was very much reduced in Barnsley, Doncaster and Rotherham.

·        In future, 1 in 4 jobs in South Yorkshire could be undertaken at home without losing productivity.

Members discussed the effects the pandemic was having upon jobs in South Yorkshire and the economic impact of Covid-19. 

R Jarvis asked what the impacts would be in relation to unemployment and business failure, when the Government’s Furlough Scheme and Jobs support grants came to an end. 

P Johnson replied that modelling work was currently being undertaken to address the impacts of the termination of the Government’s Furlough Scheme and the number of individuals it would impact upon. 

R Jarvis referred to the transformation of city centres to support business developments.  He asked if the MCA would be undertaking further work to regenerate city centres and the transport network; the current 5 year plan did not reflect the future. 

P Johnson replied that the Additional Restrictions Grant from Government had been used to help both town centres and young people. 

Councillor Jones referred to ‘gross value added growth’ and asked if assurances could be given to the Committee around the MCA’s intention. 

R Adams replied that the 2014-2020 Economic Plan had a single priority to grow a bigger and stronger private sector and therefore, the outcomes associated were around jobs growth and gross value added growth. 

The new Strategic Economic Plan (SEP) was still focused on growth, but had a broader suite of impacts.  In addition to jobs and gross value added, the SEP looked at wider impacts around inclusive places and sustainability.  The SEP had been founded on three pillars, namely, ‘growth’, ‘sustainability’ and ‘inclusion’. 

In response to the Covid-19 outbreak the Renewal Action Plan had been developed, setting out how the city region would recover from the Covid pandemic, which highlighted that jobs are the short-term priority. For the next year / two years, the MCA had stated they would focus on the stabilisation of the business base and jobs.

The Renewal Action Plan contained timescales and implementation plans had been developed and actions were being mobilised. Alongside this the SEP aspirations for businesses resilience through innovation, trade and international partnerships, were being progressed. 

A Marshall asked if the Adult Education Budget would be utilised to help the hardest hit groups affected by the pandemic by directing and advising where training needs to take place. 

R Adams replied that the MCA would take control of the Adult Education Budget in August 2021.  Officers were currently in the process of procuring and working with grant providers.  The Adult Education Budget was one tool the MCA will use, alongside Gainshare investment to focus on job support and promotion of apprenticeships.

The MCA’s Education, Skills and Employment thematic Board were currently working on a programme to respond to this challenge.  

RESOLVED – That the Audit and Standards Committee noted the presentation.