The South West needs a long-term economic and transport plan which will protect its hospitality and tourism sectors and boost growing green and marine industry, says the Shadow Chancellor.
Labour’s Anneliese Dodds agreed with some West Country business leaders that the recent Budget had provided support for pandemic-damaged businesses but stopped short of creating a vision for growing the regional economy.
Ms Dodds, speaking to Business Live after a CBI-hosted virtual meeting with South West businesses, said there was a danger the South West could be overlooked by the Tory Government’s “levelling-up” agenda, with focus given to the North instead.
She said investment is necessary for the region’s innovative and environmentally-friendly ventures, including the marine, geothermal, solar, and tidal industries.
And she said that once businesses can reopen, post-lockdown, they need to be backed by a public health system which manages the pandemic so future restrictions are avoided.
“It was fantastic to hear from businesses, particularly about challenges during this period,” she said. “The South West has been suffering when it comes to tourism and the visitor economy. And there are issues around connectivity, and a strong case for the Government to be providing that infrastructure investment now.
“But there are opportunities as well, and ambitions that exist around the possibilities of the green economy and geothermal and tidal energy, and new jobs.”
Following Chancellor Rishi Sunak’s March 2021 Budget there was disappointment from some West Country businesses that measures to boost the economy during the Covid pandemic did not go far enough.
They called for the furlough, business rates relief, and the 5% VAT rate to have been extended for even longer and said that a far-reaching plan was needed to build the economy.
“But we did not see a longer term strategy in this Budget for regions like the South West,” said Ms Dodds. “It’s frustrating.”
She said the region is hampered by having “one railway line, in and out” which is vulnerable to extreme weather and added that a long-term transport infrastructure strategy is needed.
And that despite the South West having several Tory MPs it had been short changed in investment into the economy, education and health and said it was “awful” that Cornwall’s GVA is below nearly everywhere in the country, yet the Duchy has a lot of potential when it comes to creating “the jobs of the future”.
So she supported the #BacktheGreatSouthWest campaign, lead by businesses and the Western Morning News, to push for the region to become a green-energy powerhouse.
“Labour has said to central Government that it needs to be focused on bringing forward capital investment and supporting green jobs,” the Shadow Chancellor said. “That would help local people and the environment. Lots of other countries are moving ahead with that – the UK is not. We need a long-term approach.”
And she added: “We need a more diverse economy, which is good for the South West and the whole country. There needs to be a diverse, sustainable industry across the South West.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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“There is potential for innovation around geothermal, solar, and he blue sector, marine, which is really important. But we need it to be supported and backed by Government. That includes growing skills.”
Ms Dodds, MP for Oxford East, said a fourth lockdown would be “devastating for business” in the South West and the Government needs to ensure that does not happen.
She said this can be achieved by ministers ensuring a robust self-isolation and test-and-trace system for the nation and said: “We need to make sure that reopening is irreversible. That the Government gets a grip on self-isolation, which has not been done.”
Abredeen-born Ms Dodds said that the Government should work with businesses and trade unions to ensure a support package is available for businesses should restrictions have to be reintroduced.
“That would build confidence,” she said. “But if hospitality opens with restrictions many businesses on low margins can’t afford to operate for long periods with fewer customers coming in. That is not feasible for the long term. So we need to plan for a full opening.”
