Agenda item

(Lead Member: Cllr S. Pandor, Director: Liz Hunter)

The Combined Authority received an update on developments around the COVID-19 pandemic and work to support economic recovery in West Yorkshire.

The number of Covid-19 cases in the region had increased by 15% and was approaching the November 2020 peak, particularly in the 10-14 years age group. Calderdale was particularly affected, with the 9^th highest rate of infections in England.

Retail spending in the region had fallen since the previous meeting – feedback had been received that rising energy prices were disproportionately affecting retail businesses, the Bank of England had forecast that inflation may rise up to 5%, and it was expected there would be pressure to increase interest rates. To address this the Combined Authority had made attempts to address skill shortages across all sectors, and part of the adult education budget would be repurposed to help with the national driver shortage. An increase in referrals to the Combined Authority’s employment hubs from Jobcentre Plus had been received since the furlough scheme had ended, and the Combined Authority was working with Local Authorities to match these referrals with employment opportunities. A new business start-up offer was also due to be launched to support those considering self-employment as well as existing business.

The support offered to businesses in the region was welcomed by Members, and targets aiming to ensure fair access to support for groups such as BAME residents, women, and those with disabilities were praised, but it was also noted that place-based inequalities existed, with some areas of the region having been hit harder by the pandemic than others, and it would be important to consider this to achieve fully inclusive growth. Members also questioned how this support was tracked in relation to the Help to Grow grant scheme, to ensure that funding was being used to the best effect in regards to the resilience of the economy and particularly small and medium-sized enterprises (SMEs); officers advised that any businesses engaged would always be directed to appropriate resources such as Help to Grow as part of a wider portfolio of linking businesses with available support. It was also requested that details on any council tax support be included in future reports on this topic.

Members cautioned that the recovery would be a challenging time for many in local communities, with the end of the furlough scheme, cuts to universal credit, rising energy costs and high property prices all contributing to this, and that it may be some time before the situation stabilised into a ‘new normal’. To avoid adding a further burden for families already being stretched by these factors, the Mayor would not be introducing a mayoral precept for the current year.

The link between the health of the region’s residents and the health of the economy was discussed, with it being noted that children from low-income families were more likely to suffer from poor nutrition, leaving them more susceptible to other conditions. With over a third of West Yorkshire children living in poverty, addressing these inequalities was noted as being vital. Similarly, people who were ill or looking after an ill family member may need to take increased time off of work, and were less likely to spend money in their local economies.

Members noted it would be important to support the Government’s vaccination and booster programmes, and it was suggested that low-level interventions by the Government now, such as increasing social distancing in schools, could prevent more serious interventions such as another lockdown. Concerns were also raised over adult social care funding, which faced serious upcoming challenges, and Members expressed disappointment over a lack of Government support other than an assumption of a continuing social care precept on council tax.

The importance of funding for skills as a path toward a strong and inclusive recovery was highlighted. Members questioned if the capacity to deliver the needed training was available, and what measures were in place to ensure the right people were provided with opportunities for skills and training. Officers advised that the capacity and capability was there, with many excellent colleges and other training providers throughout the region, but with the total devolved Adult Education Budget having fallen by over 50% over the last ten years funding and resources were the limiting factor in supplying this training.

The Chair noted that she and Sir Roger Marsh had recently held a roundtable event with businesses on the driver shortages currently impacting the HGV industry and invited Members to share their concerns and suggestions on this issue.

Councillor Waller joined the meeting during discussion of this item.

Resolved: That the Combined Authority notes the update on Covid-19 support in West Yorkshire.