As a local council leader, I understand now all too well the pressures placed on local people and local economies as a result of the health pandemic.
South Kesteven District Council, like all others, has made seismic moves to support our most vulnerable residents, for example - the setting up of our hugely successful Community Hub, whilst acting as the conduit for support to local businesses.
We have witnessed unprecedented funding at a national government level through business grants, support for our NHS, additional funding for local councils and the furlough scheme, which has helped to retain and safeguard jobs across all sectors of the economy.
Even with this level of support it has not been easy and of course, like every other council leader, I suspect there is a little bit of Oliver in all of us. We are always tempted to ask ‘please Sir could I have some more’? I am however acutely aware of the fragile state of both our national and local economies; now, after the shockwave of the lockdown, it is time for a reality check, and to move to the next stage in recovering Britain’s physical and economic health.
Whilst the furlough scheme has proven to be a lifesaver for jobs and businesses, what we need in the longer term is for those jobs to be sustainable, and the harsh reality is that jobs dependent upon, in effect, a Government subsidy, will not be sustainable.
We also know that there is a confidence issue in persuading us, to resume their post-lockdown spending patterns and to encourage them, in particular, to buy from local businesses, which in turn will provide that sustainability for local jobs.
I therefore very much welcome the measures to bolster the confidence of employers in bringing employees back off furlough, with the additional incentive of a £1,000 bonus per employee, if they are retained in employment, until January 2021. This, if nothing else, will provide businesses with the time to re-establish their client and customer base, and with the confidence of some financial headroom.
The boost to the housing market is important to South Kesteven too. Not only do we have ambitious plans for housing growth in all of our towns, but we are also home to key regional developers and housing companies that we need to help prosper. If they keep building, this creates much needed homes and skilled jobs across the economy.
With 80% of hospitality firms having stopped trading in March, in a sector with 1.4 million workers, like most council leaders I have been hoping that the cessation of trading is only temporary. Cafes, pubs and restaurants are the very businesses that make our local High Streets and Towns vibrant and attractive places. This is particularly true and important in South Kesteven’s market towns – notably Stamford - which thrives on the visitor economy and the leisure sector. Therefore, the Chancellor’s measures, to cut VAT to just 5% to help the hospitality and accommodation sector, alongside the measures to provide discounts on dining (‘Eat Out to Help Out’) are both practical and innovative ways to support the recovery of our local economies.
Going beyond this, the big-ticket items of £2 Billion to support green home improvements, and a further £1 Billion to green the public estate, are not only welcome in terms of local economies, but a big green step in the right direction to decarbonising Britain. I know that in South Kesteven we have a long list of innovative ideas as to how we can both save money and decarbonise our assets. Funding to enable projects to get off the ground will be a welcome boost to jobs, skills and our ambitions to address climate change.
I will of course be continuing to make the case loudly for local councils. I believe that we are the driving force for local prosperity and local growth. That means our ambitions for local places may outstrip the reality of resources but, as a starting point, the Chancellor’s summer statement provides the stimulus that we need to start to nurture our local economies back to full health, enshrining resilience, not dependency, in local places.
