east midlands news

Derbyshire residents set to vote for the first ever East Midlands mayor as devolution gets the green light

Residents across Derbyshire will get the chance to vote for the first-ever East Midlands Mayor next May, after councils gave the go-ahead to devolution for the region.

Derbyshire County Council, Nottinghamshire County Council, Derby City Council and Nottingham City Council have each approved plans to create the East Midlands Combined County Authority (EMCCA), which will come into existence next Spring.

EMCCA is set to bring in around £4 billion of funding for the region, alongside devolved powers for transport, skills and adult education, housing, the environment and economic development.

Barry Lewis, Leader of Derbyshire County Council, said: “Our shared vision is for the 2.2 million people who live and work in the heart of the country to be better connected and more prosperous – addressing years of historically low investment in our region.

“Devolution brings much more control over our own area. Rather than many major decisions being made for us in London, local people would have a say in the region’s priorities. This is just the start and more benefits and funding are already starting to flow – such as the Government’s recent announcement of £1.5 billion local transport funding for the new East Midlands Mayor.

“The creation of a new mayoral combined county authority will unlock the benefits of the East Midlands devolution deal and bring improved public services and a brighter future for our residents.”

Plans for East Midlands devolution are similar to those already in place in other mayoral regions, like the West Midlands and Greater Manchester.

The East Midlands devolution deal, agreed with Government ministers last summer, would see Derbyshire, Nottinghamshire, Derby and Nottingham benefit from a £1.14 billion investment fund. Other areas with devolution deals have been able to make their funding go even further and have greater impact by leveraging significant private sector investment.

A public consultation on East Midlands devolution, carried out between November 2022 and January 2023, showed strong support for the plans among local residents, businesses and community groups.

In October, the Government announced around £1.5 billion in transport funding for the East Midlands Mayor.

Thanks to devolution plans, the East Midlands has also been invited to establish an ‘Investment Zone’, which will attract £160 million of support over ten years, with tax incentives for businesses that will help boost economic growth right across the region.

It is estimated that the East Midlands Investment Zone will unlock hundreds of millions of pounds in private investment, creating thousands of jobs right across the region.

Government will continue to work with the proposed East Midlands Mayoral County Combined Authority (EMCCA) and other partners to co-develop the plans for the East Midlands Investment Zone, including priority development sites and specific interventions to drive cluster growth, ahead of final confirmation of the plans.

£18 million has already been awarded to the area during devolution negotiations, which is being spent on improving local housing, transport and skills provision.

Further investment for the region would also be provided through annual Whitehall budgets and spending reviews.

All four councils have now agreed to the creation of East Midlands Combined County Authority and the legal regulations around creating this new authority.

The Government will now need take the deal before Parliament, as this is first of a new type of combined authority and it requires new legislation.

If the legislation is passed in the coming weeks it would come into force by March 2024, meaning the EMCCA will officially come into existence.

The inaugural election for East Midlands Mayor will take place on 2 May 2024.

View of the Crooked Spire from above

Image courtesy of Derbyshire Economic Partnership

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East Midlands businesses tell Chamber what they want from next Government ahead of party conferences

Long-term strategies for energy and industry are top of the wishlist for the region’s businesses ahead of the next General Election, according to a new study by East Midlands Chamber.

Speeding up the rollout of full-fibre broadband and 5G connectivity, greater investment in road and rail infrastructure projects, and better incentives for upskilling and reskilling people followed closely behind as priorities.

The chamber of commerce for Derbyshire, Leicestershire and Nottinghamshire asked businesses to provide views on 20 policy asks in its latest Quarterly Economic Survey, with the development of a long-term energy strategy for the UK ranking as being the most important.

Results were compiled to establish a list of top priorities for businesses, which has been published ahead of the upcoming Labour and Conservative party conferences in October.

Chris Hobson, director of policy and insight at East Midlands Chamber, said: “With a General Election drawing closer on the horizon, it’s hugely important for the voice of businesses to be heard by the next Government in order to drive sustainable economic growth that delivers jobs and prosperity.

“After many years of policy flip-flopping, economic shocks and the resulting uncertainty this has created for businesses, long-term planning appears to be front and centre of minds.

“A long-term energy strategy is understandably top of the list given the huge rise in utilities costs for firms and households over the past two years combined with the opportunities business see to deliver future solutions in this space. It’s closely followed by a comprehensive industrial strategy that finally addresses the UK’s perennial productivity problem – which is crucial to growing output, creating jobs and bringing down inflation.

“In our regional economic blueprint, A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, launched in Westminster last year, we highlighted the importance of infrastructure – that is, both digital and transport – as one of ‘four Is’ to spearheading growth.

“Businesses are telling us they want to see real improvements across broadband and 5G connectivity, which are both crucial to 21st century working, while investing in our roads and rail is crucial to their future success – an important consideration at a time Government is deliberating over the future of HS2 and our region continues to be bottom of the pile for public transport investment.

“We have also spoken in our manifesto about ‘getting the basics right’ and ‘growing our competitiveness the right way’, and both these themes are reflected in our survey as firms tell us they want the broken business rates to be made fit for purpose and better incentives to support the net zero agenda.”

Policy priorities for East Midlands businesses

The responses on policy priorities were gathered by East Midlands Chamber in August and September 2023 as part of its Quarterly Economic Survey, in which 296 businesses across Derbyshire, Leicestershire and Nottinghamshire took part.

They were presented with a list of 20 policy asks of Government and asked to score them based on importance to their organisation, providing additional comments as to why. The top 10 priority areas, in order, were:

  • The development of a long-term Energy Strategy for the UK
  • The development of a long-term Industrial Strategy for the UK
  • Speeding up the rollout of full-fibre broadband
  • Greater investment in local infrastructure projects (road, rail)
  • More flexible/generous incentives for investment in staff development/reskilling (including application of Apprenticeship Levy)
  • Greater investment in major infrastructure projects (road, rail)
  • Speeding up the rollout of 5G technology
  • Comprehensive reform of the business rates system
  • Greater investment in integrated public transport networks
  • More flexible/generous incentives for developments associated with the green agenda.

Perfectly located in the centre of the UK with excellent connectivity to several major cities, find out why Chesterfield is a great location for your next business base.

East Midlands Chamber supports the marketing and economic growth of the town through Chesterfield Champions, a network of over 200 organisations across Chesterfield and North Derbyshire.

Chris Hobson, East Midlands Chamber

Chris Hobson, Director of Policy and Insight, East Midlands Chamber

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Young professionals in the East Midlands urged to have their say in survey that aims to retain region’s emerging talent

Young professionals in the East Midlands have been invited to take part in a survey as part of a project to enhance their development opportunities.

East Midlands Chamber’s Generation Next network has launched the study to gain a deeper understanding of what young people want to achieve and what support they require to realise aspirations.

The survey results will help it to improve the network, which supports 18 to 35-year-olds working in the region to develop their skills, access mentoring opportunities, broaden their networks and have their achievements recognised through an annual awards programme.

With only about a third of graduates from the region’s six universities remaining in the East Midlands after completing their studies, this will also support Generation Next’s wider mission to retain more young talent in Derbyshire, Leicestershire and Nottinghamshire.

East Midlands Chamber director of resources and Generation Next lead Lucy Robinson said: “Graduate retention is one of the major issues holding back our economy from realising its tremendous potential as having a young, skilled workforce can attract businesses to invest here, which creates the jobs and wealth that allows our communities to prosper.

“The insights we will gather from this survey will be crucial in helping the Chamber and employers across our region to address the needs and values of our young workforce, so we can together create opportunities to help them build their futures in the East Midlands.”

The network, which is backed by a governance board of “champions” within its age group, aims to achieve this by creating better business and learning opportunities tailored to the needs of young workers through its skills-based and social events, mentoring scheme and document library.

The survey will also assist by amplifying their voice across the East Midlands Chamber network of more than 4,000 members, giving regional employers an insight into the driving forces behind young people’s early career choices so they can create a better environment for them to live and work.

Findings will be outlined at Generation Next’s inaugural conference in October, which is funded by its newest partner, ITS Technology Group.

Daniel Nikolla, chair of the Generation Next board and marketing manager at Hardy Signs, added: “Launching the survey is one of my key objectives for my term as chair. We want to be the voice of the next generation of business and amplify their messages to the wider business community, and the results from the survey will help us do just that.”

To fill in the Generation Next young professionals’ survey, visit bit.ly/GenNextsurvey

Commerce House

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Latest employment figures show ‘great resilience’ of East Midlands businesses

Figures show that unemployment in our region has dropped for the second consecutive month, despite the overall UK unemployment rate rising by 0.2%.

The East Midlands’ unemployment rate has reduced to 3.3% for the period between March and May 2023, new figures by the Office for National Statistics (ONS) show.

It fell by one-tenth of a percentage point from the previous reporting period to April, moving in an opposite trajectory to the UK unemployment rate, which rose from 3.8% to 4%.

The region’s economic inactivity rate – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – dropped by three-tenths of a percentage point to 21.2%, the lowest level in a year.

East Midlands Chamber chief executive Scott Knowles said: “Despite some mild concerns earlier in the year that the unemployment rate was rising, it appears to have stabilised around historically very low levels, which reflects the great resilience of the East Midlands business community amid some very tough challenges.

“Rising economic inactivity has been one of the greatest concerns over the past year as it led to a dwindling labour market, which has restricted capacity – and therefore the ability to grow, raise productivity and bring prices down.

“While this rate remains significantly above pre-Covid levels, it’s pleasing to see this has now come down by just under 1.5% in the past nine months, giving firms more room to manoeuvre.

“Our own research backs this up but also illustrates persistent challenges, with our Quarterly Economic Survey showing seven in 10 businesses that attempted to recruit between April and June experienced problems in filling roles, compared to eight in 10 at the end of 2022.”

Nationally, regular pay grew by 7.3% during this period, a record annual increase despite lagging behind inflation, which stands at 8.7%.

Scott added: “While recruitment problems may be easing slightly, the record rise in wages suggests firms are still facing major cost pressures as the labour market tightness has forced employers to pay more for people at a time when they are being hit by inflation and surging interest rates.

“This is perhaps why future recruitment prospects are less optimistic, with a net 6% decline in East Midlands businesses adding to their headcount for the next three months. The proportion of firms intending to invest in training also declined by 3%, with business confidence fragile.

“What we desperately need is a dedicated Government policy that supports companies to invest in their people, whether that be in upskilling their existing workforce or reskilling prospective employees to fill skills gaps.

“In our Business Manifesto for Growth, we have set out a list of policies we believe will make the required difference, including introducing flexible incentives for businesses that invest in staff training and bringing forward the introduction of the Lifelong Loan Entitlement to support retraining and the retainment of an older workforce.

“We must also tailor policies to recognise the diversity of people who are out of work and avoid a one-size-fits-all solution. We would also like to see Government work with businesses to offer support, and share best practice, on what a flexible and inclusive workplace looks like as this is another vital ingredient in enticing people back to work.”

East Midlands Chamber supports the marketing and economic growth of the town through Chesterfield Champions, a network of over 200 organisations across Chesterfield and North Derbyshire.

East Midlands Chamber - Chesterfield office

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Regional unemployment rate remains below the national average

The unemployment rate in the East Midlands declined slightly from 3.4% to 3.3% in the three months to December, remaining below the UK average of 3.7%.

The figures have been published by the Office for National Statistics in its latest regional labour market data published on Tuesday, 14th February.

However, the region’s economic inactivity rate – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – climbed to a record high of 22.7%, compared to a UK rate of 21.4%.

East Midlands Chamber chief executive Scott Knowles said: “After an upwards trajectory in the level of unemployment since the summer – albeit against a context of still being at historically low levels – it is good to see this curve begin to flatten in recent months.

“As we also saw with the UK economy narrowly heading off a widely-expected recession at the end of 2022, this is another important indicator in illustrating the resilience of our businesses during what has been a very challenging three years with pandemic restrictions followed by a cost-of-doing-business crisis.

Scott Knowles

Scott Knowles, Chief Executive of East Midlands Chamber

“Yet we shouldn’t get complacent about a strong jobs market and our own research suggests unemployment levels may not remain so low this year.

“Our Quarterly Economic Survey for Q4 2022 found there was an 8% decline from quarter to quarter in the proportion of East Midlands businesses that added to their workforce in the previous three months, while there was a similar drop-off in recruitment prospects over the coming three months.”

The rising economic inactivity rate – which was 18.7% immediately before Covid-19 lockdown – poses a cause for concern and the Chamber has urged Chancellor Jeremy Hunt to address it in the forthcoming Spring Budget, scheduled for 15 March.

Scott added: “Not only are they continuing to face unsustainable cost pressures, but as the rising economic inactivity rate demonstrates, we have one of the tightest labour markets ever seen. Businesses that want to grow, and create jobs and wealth in their local areas, are unable to do so because of acute skills shortages.

“This poses a major concern for the road ahead as our economy plateaus but with the Spring Budget fast approaching, there are measures the Government can take to support businesses to develop a skills base fit for 21st century industry.

“In our Business Manifesto for Growth launched in Parliament last November, we proposed a series of reforms around how businesses invest in their people.

“These include flexible incentives for business investment in staff training, expanding the use of the apprenticeship levy, bringing forward the introduction of the lifelong loan entitlement to support retraining and the retainment of an older workforce, and a comprehensive reform of the shortage occupation list to allow sectors facing urgent demand for skills to get what they need.

“In other words, this is about ‘getting the basics right’ – removing the day-to-day barriers for businesses and ensuring the basic building blocks of economic success are in place.”

To read the Chamber’s Business Manifesto for Growth, A Centre of Trading Excellence, visit www.emc-dnl.co.uk/manifesto. 

East Midlands Chamber - Chesterfield office

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New £750,000 walking and cycling route announced for Staveley and Markham Vale

A new walking and cycling route is set to be developed in Staveley, which will connect Markham Vale to the existing cycle route in the town.

The £750,000 investment is part of a wider £7 million fund announced by the government, which will improve a number of areas across the East Midlands region.

The funding which has been given the green light is part of an early investment offered to our area as part of devolution negotiations. It is not dependent on devolution proposals going ahead.

It is part of £18 million on offer from the government to the region for investment in different projects supporting local priorities, which relate to housing, the environment, infrastructure, skills, and transport in Derbyshire, Nottinghamshire, Derby, and Nottingham

The programmes which are being funded are:

  • £750,000 for a new cycling and walking route in Derbyshire, a 1¼ mile link connecting Markham Vale to the existing cycle route in Staveley.
  • £1.5 million for the new roundabout on the A6 at Fairfield in Buxton, Derbyshire, allowing access to housing development land. The roundabout provides access to sites for 461 new homes, including 30% classified as affordable. It also brings work to an area of social deprivation. This work has been completed, with the funding which has just been approved going towards the cost.
  • £1.5 million for a new growth through green skills. The investment will enable the creation of a new £5.4 million flagship skills centre and low carbon demonstrator in our region, to be operated by West Nottinghamshire College, as well as two electric minibuses for getting students to and from the site, to support the growth of a future low carbon economy as we work towards net zero.
  • £2 million for a new long-term private rental scheme to address homelessness in Nottingham City and Derby City and reduce the use of bed and breakfast accommodation for housing.
  • £1.22 million for more affordable housing in Derby city, where there is currently a shortage, to provide 15 extra social houses to be let at an affordable rent. It will mean less reliance on temporary bed and breakfast placements and shorter waiting times for longer-term accommodation.

Other regeneration and net zero projects are also in the pipeline, with decisions on these expected soon.

Derbyshire County Council, Nottinghamshire County Council, Derby City Council and Nottingham City Council have been working with the Government on devolution plans including a package of local powers and funding worth £1.14 billion, from 2024. If the plans go ahead, it would also mean a new regional mayor.

The leaders of the 4 councils signed up to work on a devolution deal on 30 August this year at Rolls Royce in Derby. Since August, the councils have developed a more detailed proposal, which includes more information about how devolution would work in our area. The proposal was the subject of a public consultation, which took place from 14 November 2022 to 9 January 2023.

Barry Lewis, Leader of Derbyshire County Council, said: “The approval of these projects is a solid example of the benefits that devolution are bringing to our region.

“These schemes will make a measurable difference to people’s quality of life through opportunities to gain new skills, environmental and health benefits from walking and cycling, better housing and new infrastructure.

“This is the East Midlands levelling up, and finally getting the benefits that we have missed in the past.”

Devolution would mean a new guaranteed funding stream for our region of £38 million a year over a 30-year period. Covering Derbyshire, Nottinghamshire, Derby, and Nottingham, the devolved area would cover around 2.2 million people, making it one of the biggest in the country.

The devolution deal includes an extra £16 million for new homes on brownfield land and control over a range of budgets like the Adult Education Budget, which could be better tailored to the needs of people in our communities.

The regional mayor would lead a new combined authority, which would include representatives from existing local councils, with decision making powers and resources moving from London to the East Midlands. Local businesses would also have a voice, as well as other organisations.

Devolution would not mean scrapping or merging local councils, which would all continue to exist as they do now and would still be responsible for most public services in the area. The mayor and combined authority would instead focus on wider issues like transport, regeneration, and employment across both cities and counties.

The public consultation on devolution, open to residents, businesses, community groups and other organisations, took place from 14 November to the 9 January.

 

Markham Vale Staveley

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£1.14 billion devolution deal announced for the East Midlands

Local leaders in large parts of the East Midlands will be given new powers to improve transport, boost skills training and build more attractive and affordable homes through a historic, first of a kind county devolution deal signed with the government.

Levelling Up Secretary Greg Clark has signed the deal with Derbyshire and Derby, Nottinghamshire and Nottingham, which will see the area appoint a directly elected mayor, responsible for delivering local priorities, backed by a new £38 million per year investment fund, totalling £1.14 billion over 30 years.

The deal delivers on a commitment made in the government’s Levelling Up white paper published early this year to shift in powers and resources away from Whitehall to local communities.

In addition to the agreed funding being under local control rather than control from Whitehall, a new Mayoral Combined County Authority will be created, with control over the core adult education budget, to boost skills in the region, as well as the ability to increase control over transport infrastructure.

The new mayor will also be granted powers to drive regeneration, with compulsory purchase powers and the ability to designate Mayoral development areas and establish Mayoral Development Corporations to promote growth and build new homes.

Councillor Tricia Gilby, leader of Chesterfield Borough Council, said: “Chesterfield’s residents and businesses deserve to have the same opportunities as those living in the towns and cities of the West Midlands, South Yorkshire, and other areas where Mayoral Combined Authorities already exist.

“They do not at present, which is why I welcome the announcement of a devolution deal for the East Midlands. Being able to access new sources of funding and take on new powers in relation to transport, housing, adult education, skills, and other matters can only be a good thing but these freedoms come at a price.

“I will be taking a close interest in how the East Midlands Mayoral Combined County Authority takes shape over the next 18 months and how we at Chesterfield Borough Council best influence this new body to achieve the very best outcomes for the people of Chesterfield.

“Given the current cost of living crisis, we must avoid power struggles and unnecessary bureaucracy, it is a time for local government at all levels to come together and put our communities first.”

Levelling up Secretary Greg Clark said: “The East Midlands is renowned for its economic dynamism and it has the potential to lead the Britain’s economy of the future. For a long time I have believed that the East Midlands should have the powers and devolved budgets that other areas in Britain have been benefitting from and I am thrilled to be able to bring that about in Derby, Derbyshire, Nottingham and Nottinghamshire.

“I am impressed by the way councils in the region have come together to agree the first deal of this kind in the country, which will benefit residents in all of the great cities, towns and villages across the area of Derbyshire and Nottinghamshire.

“Taking decisions out of Whitehall and putting them back in the hands of local people is foundational to levelling up and this deal does that.

“The new East Midlands Combined County Authority will also be granted control of over £17 million of additional funding for the building of new homes on brownfield land in 2024/25, subject to sufficient eligible projects for funding being identified, and a further £18 million has been agreed to support housing priorities and drive Net Zero Ambitions into the area.”

In a joint statement, Ben Bradley MP, Leader of Nottinghamshire County Council, Barry Lewis, Leader of Derbyshire County Council, Chris Poulter, Leader of Derby City Council, and David Mellen, Leader of Nottingham City Council, said: “We welcome the £1.14 billion devolution deal from the government on offer for our region. It’s fantastic news.

“We want to make the most of every penny so this can be used to make a real difference to people’s lives.

“As Leaders, we have all fought for a fairer share for our cities and counties, and a bigger voice for our area, to give us the clout and the influence we deserve, and to help us live up to our full potential.

“This deal would help make that a reality, creating more and better jobs through greater investment in our area, with increased economic growth, better transport, housing, skills training, and an enhanced greener environment, as we move towards being carbon neutral. These are what we all want to see, and we will work together for the common good of the East Midlands.

“We haven’t always had the same level of funding or influence as other areas, which has held us back. This is a golden opportunity to change that and put the power to do so in our own hands.

“There is a lot still to be agreed, and this is the beginning of the journey, not the end. We’re determined to build on this deal over time, as other areas have done.”

This will be the first ever Mayoral Combined County Authority, a new model of devolution provided for in the Levelling Up and Regeneration Bill. Implementation of this deal is dependent on Parliamentary approval of the Bill and necessary secondary legislation, as well as a public consultation.

This marks another important milestone in the government’s commitment to ensure that every area in England that wants a devolution deal can get one by 2030, as promised in the Levelling Up white paper published earlier this year.

New powers will help to improve local skills which will meet the specific needs of the local economy, helping to boost the region financially. In addition, there will be greater powers to drive regeneration creating more affordable housing for local people, making the area a more desirable place to live, work and visit.

Town Hall

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East Midlands unemployment rate hits lowest point in seven years – but Chamber warns of recruitment challenges

The East Midlands’ unemployment rate has fallen to its lowest point on record, new figures show.

It was 3.5% for the period between September and November last year, compared to a 4.1% national average.

This is the lowest level since the Office for National Statistics (ONS) began publishing regional labour market figures in April 2015, and represented the smallest proportion of the workforce being unemployed since the three months to December 2019, when the rate was 3.6%.

It also marked a significant drop on the previous reporting period for August to October 2021, when the region’s unemployment rate was on par with the UK average at 4.2%.

East Midlands Chamber chief executive Scott Knowles said: “This is fantastic news for the region’s labour market and sends a clear signal that the East Midlands is open for business.

“It reflects our own research that indicates our region’s firms are creating jobs to meet strong demand following the effects of the pandemic. The Chamber’s latest Quarterly Economic Survey (QES) for Q4 2021 showed two-thirds of companies attempted to recruit, while a net 35% expect to increase their headcount in the first three months of 2022.

“We are represented by a very diverse economy in the East Midlands but there have been some standout sectors to celebrate in recent times, such as the logistics industry that has been a major driver of job creation during the pandemic, which has accelerated pre-existing online shopping trends.”

Tightening labour pool presents acute challenge for businesses

While the East Midlands has one of the lowest unemployment rates for over-16s in the UK, the economic inactivity rate for people aged 16 to 64 rose from 21.02% to 22% in the most recent reporting period.

UK job vacancies also soared to a record high of 1.24 million between October and December – 462,000 higher compared with the three months before the pandemic.

Scott added: “Despite the positive trajectory in unemployment, businesses are still encountering major recruitment challenges in a super competitive jobs market.

“The 0.8% increase in the economic inactivity rate represents a rise in the number of people who have opted out of employment, whether it’s for studying, caring or to take early retirement – with the latter being a noticeable trend during the pandemic.

“This means the labour pool is tightening at a time when companies are desperately trying to fill roles to cope with demand, which will enable them to continue growing and creating more jobs for local people.

“Many companies in traditional industries such as manufacturing and construction often tell us about the difficulties in replacing an ageing workforce with younger talent, and the latest QES showed that eight in 10 of those that attempted recruitment struggled to find people with the right skills.

“As we await publication of the Government’s delayed Levelling Up White Paper, the wider context behind the latest ONS data illustrates the need for policymakers to understand how we can pull the right levers in order to support the local economy’s requirements.”

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East Midlands Chamber responds to national lockdown announcement

East Midlands Chamber is welcoming One-off £9,000 business grants, but says firms need the inside track to the Government’s plan for coming out of the newly-announced national lockdown.

Responding to the Government’s announcement of a third national lockdown for England, East Midlands Chamber (Derbyshire, Nottinghamshire, Leicestershire) chief executive Scott Knowles said: “After a desperate 2020 for businesses and communities, a third national lockdown is another devastating blow to business confidence as it follows hard on the heels of lost trade during the festive season – not to mention the uncertainty that prevailed up until the eleventh hour of the Brexit transition period.

“The Government’s need to act in the face of spiralling threat to public health is obviously understood but after already spending billions on helping good firms to survive this crisis and save jobs, it must not let these companies fail now when the vaccine rollout provides light at the end of this long, dark tunnel.

“The Chancellor’s announcement today of a one-off £9,000 grant for retail, hospitality and leisure businesses will hopefully help keep their heads above water for a couple more months, but Westminster must remember financial support – while certainly welcomed and required – is no substitute for a fully open economy that allows businesses to generate their own revenue.

“It’s now time for the Government to open the lines of communication with businesses by sharing its plan for how the brakes will be lifted on the economy over the coming months to allow businesses to plan properly.”

For more information on guidance and business support available during the current lockdown, visit our Covid-19 support page here.

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Chamber chief executive writes to Prime Minister demanding greater clarity for businesses in lockdown decisions

The chief executive of East Midlands Chamber has written to Boris Johnson urging the Government to provide greater clarity to businesses over lockdown restrictions.

Scott Knowles told the Prime Minister yesterday (1 December) about the “dissatisfaction” felt by the private sector in the region regarding plans to place Derbyshire, Leicestershire and Nottinghamshire into Tier 3 measures.

He said the East Midlands has been impacted by restrictions longer than anywhere else in the country, with Leicester and parts of Leicestershire the first area to be placed under local lockdown at the end of June, and reminded Mr Johnson of the five tests requested by the chamber of commerce – which represents 4,250 members across the three counties – by which to assess decisions taken.

Commenting on the new tiered approach to restrictions in the letter, Scott said: “I understand the difficult discussions involved in this and the numerous factors that have to be taken into consideration.

“However, I wanted to express our dissatisfaction at the outcome for the majority of the East Midlands and ask for greater clarity over the basis on which decisions were taken, future plans for ending these restrictions and greater support for those businesses impacted.”

Five tests for continued coronavirus restrictions on business activity in the East Midlands

The five tests set out in June, when the Leicester lockdown came into effect, were:

1) Any decisions around closures must be based on evidence that can be shared with those affected and taken on as local a basis as possible

2) Businesses must be given enough time to make the practical preparations needed for closing and reopening

3) An exit strategy, including triggers for changes, must be made available to businesses to support them in their planning and decision-making

4) Businesses adversely impacted must be given additional grant support to compensate them for costs associated with being shut, losing trade and investment into making themselves Covid-secure

5) During closures, steps must be taken locally to reduce the risk of further disruption, including improvements made to testing and tracing

Scott added that clear, timely and consistent communication was vital in underpinning these tests.

While businesses accept the country was still learning about the nature of coronavirus in the spring and early summer, he believes there are no longer any reasons why the tests shouldn’t be met nine months on and asked for feedback from Government on decisions taken that affect the East Midlands.

“To be clear, this is not intended to be a petulant request,” he added. “Working with our members, we see the on-the-ground impact that restrictions are having in terms of business failure, livelihoods destroyed and jobs lost, along with the negative social and health fallout of this – which promises to have a longer-lasting and greater deleterious impact than the virus itself – and believe that our businesses and the communities they serve deserve better.”

The Chamber has also offered to work closer with the Government to ensure communication to and from businesses in the region works better than it has to date.

With recognition the pandemic will continue to impact lives for months to come, Scott added: “A strong, growing private sector will be central to securing our recovery and ultimate success. There is no alternative that anything other than a fully open and functioning economy will right the recovery of the region.

“Right now, businesses require more focused and enhanced support, both financial and to support in planning, in order to ensure as many as possible are fit for growth in 2021 and beyond. Meeting our tests will help ensure this happens.”

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