Cornwall is facing the likelihood of firms going out of business and further redundancies as a result of the second national lockdown, its chamber chief says.

Kim Conchie, chief executive of Cornwall Chamber of Commerce, said the Prime Minister’s announcement of a month-long lockdown from November 5, called to arrest an increase in Covid-19 cases, will be “devastating” for the Duchy’s economy.

He said small and micro businesses, especially, will struggle, with retail, hospitality, smaller “craft” manufacturers, and any firms that are labour intensive, the worst hit.

And he is also fearful that there will be a long-term negative impact on entrepreneurship and innovation, in the county, as people become reticent to set up their own businesses.

Kim Conchie, chief executive of Cornwall Chamber of Commerce

It may even mean that workers have to look at retraining for growth industries such as in renewable energy, lithium mining and bespoke, high-value manufacturing, and the trades, particularly those involved in property improvements, and high-quality agriculture.

Calling Boris Johnson’s announcement of a full English lockdown to beat rising coronavirus cases from November 5 “devastating news” and “truly shocking”, Mr Conchie said: “The future is always uncertain. But it has never been more uncertain than now. And we have Brexit around the corner.

“Most small business owners can’t really plan for this sort of disaster scenario, so it is a difficult time ahead for many businesses.”

“There are a number of small businesses that are going to find it difficult to carry on. Lots in sectors like crafts and retail will not make it work any more.

“And so Cornwall will suffer more than average because we have more than the average number of small and micro businesses.”

He said businesses that can’t react to a reduced turnover, or have heavy labour costs, will be the most vulnerable, and singled out retail and hospitality, and “small batch” manufacturers.

And he said that could lead to job losses, mainly through many small companies losing one or two staff members each.

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“We do not have many employers in Cornwall that have a large workforce, so small businesses will mostly lose one person here or two people there,” he said.

He said the ongoing coronavirus pandemic, and the associated lockdowns, could have the long-term affect of putting people off starting a business.

“Running a small business is risky anyway,” he said. “This will change what people think is doable, it could curb entrepreneurship and innovation for years.”

And he said their will be implications for the labour force and added: “Long term we have to encourage people to retrain or redirect businesses into sectors that have a future, like renewable energy, lithium mining, those where craft is at a premium, in the food and drink and creative industries, and high-quality agriculture, agrifoods.

“Staff will have to think about retraining for the care sector, construction trades, those areas where there is a big need for labour. There is plenty of requirement for the likes of plumbers and painters.”