A report by the Local Government Association (LGA) has set out
the challenges facing urban areas as they look to recover from
the economic impact of the pandemic.
Exclusive analysis carried out on behalf of the LGA, which
represents councils in England and Wales, has revealed that the
COVID-19 pandemic could result in half a million job losses in
urban centres, largely in the manufacturing, finance, hospitality
and retail sectors.
The
report, produced by Cambridge Econometrics and
commissioned by the LGA, also found that young people aged
between 16 and 24 were two and a half times more likely than
other age groups to be working in a sector that was shut down
during the pandemic.
To address these issues, the report recommends creating a
new 10-year Sustainable Urban Futures Fund worth up to £7 billion
to support local leaders to invest in infrastructure
improvements, new housing projects, local town centres and other
measures to support economic growth. This could incorporate
existing government funds, such as the Towns Fund.
Mayor Marvin Rees, Chair of the LGA’s City Regions Board
said:
“Councils are at the forefront of efforts to lead the
recovery from the pandemic, which includes delivering economic
growth that is sustainable and benefits all. We want to work
closely with the Government to help deliver on its levelling up
commitment and deliver local investment across all parts of the
country. The need for the Government to work with urban leaders
cannot be ignored, as this report sets out the stark consequences
urban economies face during this recovery phase.
"Although recent funding announcements to invest in local
areas by the Government have been important, these funds are
sometimes fragmented and complex. A Sustainable Urban Futures
Fund could provide long-term, large-scale funding for integrated
urban recovery programmes that respond to the challenges of the
pandemic and the opportunities of the future.
“Councils want to work with the Government as important
partners in their ambition to build back better and level up the
country. With the right tools, councils can help rebuild their
communities and address the challenges that have been brought by
the pandemic.”
