Study says North East levelling up 'three times harder' due to Covid-19
Covid-19 has made the government's commitment to "level up" the North East three times harder, according to a new study.
This is because of the economic damage caused to the region by the pandemic.
Think tank Centre for Cities has made the comments in its annual study of the UK's major urban areas, 'Cities Outlook 2021'.
The report says 47,700 people in the North East’s cities now need to find jobs which the think tank describes ad "secure" and "well-paid" to level up the region. That compares to 18,300 in March.
Middlesbrough is the urban area in our region where the challenge will be toughest, according to the report. It will take a 5 per cent reduction in unemployment for the town to be levelled up.
Sunderland and Newcastle are close behind and will need cuts of 4.9 per cent and 4.5 per cent respectively.
Southern urban areas and places in the Midlands as well as the rest of the North have also been affected.
Many of the areas in the South were prosperous before the pandemic and the centre has also warned about the risks of "levelling down".
The centre has suggested measures to help in the short-term, including retaining the £20 rise in Universal Credit and providing extra support for the unemployed.
The think tank also advocates new 'Eat Out to Help Out' scheme to boost the hospitality sector once it can safely reopen.
Once the pandemic is over, it suggests that the government will need to spend additional money on further education, e city centres better places for high-skilled businesses to locate and improving transport infrastructure.
Centre for Cities Chief Executive Andrew Carter said: "Covid-19 has made the Government’s pledge to level up large cities and towns of North East much harder.
"It was promised on the assumption that places in the South would remain prosperous but Covid-19 has shaken this assumption.
"Levelling up North East and stopping the South’s levelling down will not be cheap and will require more than short-term handouts."
A Treasury spokesperson said: "We are totally committed to levelling up opportunities across the whole of the UK as we build back better from the pandemic.
"This is why we’re investing £100 billion in infrastructure this year, as well as creating a new £4 billion Levelling Up Fund, establishing Freeports across the UK, reforming the Green Book, and opening a new Treasury office and UK infrastructure bank in the North in the coming year."
"Our £2bn Restart Scheme is helping people avoid the trap of long-term unemployment and the Kickstart scheme is already creating thousands of jobs for young people.The Chancellor will outline the next stages of our Plan for Jobs to support businesses and families at the Budget."