Jobs and businesses in ‘Red Wall’ towns will see worst long-term damage from coronavirus, report finds

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JOBS and businesses in ‘Red Wall’ towns will see the worst long term damage from the coronavirus crisis, a new report has found.

An array of constituencies across the Midlands and the North turning Tory from Labour in December’s general election gave Boris Johnson the keys to No10.

Businesses in ‘Red Wall’ towns such as Bishop Auckland, Country Durham, will be hit hardest long-term by the coronavirus crisis, research found

But it has emerged they also face the deepest economic scarring from the lockdown.

Red Wall communities are projected to see an average fall of 12% in economic output over the next five years – well over the national average of 8%.

The Centre for Progressive Policy also found it is also more than double the average projected losses in regions like the South East, at 5%.

Red Wall areas’ high vulnerability is because of lower levels of skills in them, and because many are already struggling.

The stark findings reveal the huge new challenge the Government now faces in implementing the PM’s ‘levelling up’ agenda.

Average annual earnings in the 20 poorest local authorities will fall from £18,580 to £17,340 in real terms in the three years after lockdown, the think tank also say.

Former Treasury minister Lord O’Neill dubbed the think tank’s findings as” very timely.

The renowned economist added: “The economic and social consequences of Covid-19 might add to some of the deep and complex challenges of those left behind already, particularly in many parts of the North, and other deindustrialised and coastal communities”.

Chancellor Rishi Sunak this week warned that the UK is facing “a severe recession the likes of which we have never seen”.

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