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Coronavirus crisis widening inequalities across UK, business leaders warn government

The northwest region has the highest number of people living in the 10 per cent most deprived neighbourhoods  (AFP/Getty)
The northwest region has the highest number of people living in the 10 per cent most deprived neighbourhoods (AFP/Getty)

The coronavirus pandemic is widening inequalities in the UK’s most deprived communities, business leaders have warned the government.

People living in the poorest neighbourhoods are not only at higher risk of dying from Covid-19 but are also suffering more from unemployment and worsening mental health, according to research for the Covid Recovery Commission.

However some of the highest levels of deprivation are found in some of the wealthiest areas of the country – affecting a total of 1.15 million people living in local authorities with the highest economic output.

Ministers should therefore focus on "people as well as places" when it comes to "levelling up" Britain to create "a stronger, fairer and more resilient economy", the commission said.

The government should also give more powers and funding to city mayors to ensure extra funding gets the best results, it adds.

Tesco chairman John Allan, who spearheads the Covid Recovery Commission, said: "Covid-19 has unfortunately had the greatest impact on the most deprived communities in the UK.

“The government’s broad focus on levelling up the country should be applauded. However, without a clear definition and set of metrics to assess progress, it is difficult to see how we can provide a ladder of opportunity for people living in some of the most deprived communities.”

The commission, which claims to be independent from government, was set up in July by the bosses of major companies including Vodafone, Heathrow Airport and Shell UK. Last month it created an advisory group whose members include public policy experts and representatives from business and society groups such as the Joseph Rowntree Foundation, the National Housing Federation and environmental law charity ClientEarth.

The most deprived neighbourhoods are found in every part of the UK, including in some of the wealthiest parts of the countryCovid Recovery Commission
The most deprived neighbourhoods are found in every part of the UK, including in some of the wealthiest parts of the countryCovid Recovery Commission

Helen Barnard, director of the Joseph Rowntree Foundation, said: "It's not right that both the health and economic impacts of this pandemic have fallen most heavily on the people who were already struggling to stay afloat, and the local economies which were already lagging behind.

"Levelling up is now more crucial than ever, and it needs to offer a reliable route out of poverty for families all over the UK.

"The response must match high-quality jobs with targeted skills and employment support for those most exposed to the coming wave of unemployment."

The commission's first report, produced by WPI Economics, is titled Levelling Up Communities. Its key findings include:

  • England's northwest region has the greatest number of people - 1.6 million - living in deprived neighbourhoods in the UK, followed by Yorkshire and The Humber, with 1.1 million.

  • More than half of people living in the top 10 per cent of poorest neighbourhoods are outside the north of England (36 per cent in the rest of England and 15 per cent in Scotland, Wales or Northern Ireland).

  • Eighteen per cent of people in the most deprived neighbourhoods - 1.15 million people - are in local authority areas with the highest economic output.

  • There has been an average of 21 more Covid-19 deaths per 100,000 population in the 20 per cent most deprived neighbourhoods compared with the least deprived neighbourhoods, even after controlling for a range of other factors.

  • Unemployment benefit claims have risen most in those areas that were already suffering from high rates of claims.

  • The proportion of people experiencing moderate to severe depression has increased by 14 percentage points for the poorest in the UK.

Matt Leach, a member of the advisory group as CEO of Local Trust fund, said: “As we rebuild after Covid, we need to ensure levelling up is not limited to rebalancing regional economies and renewing town centre infrastructure. We also need to commit to invest in supporting the development of strong and sustainable social infrastructure at a neighbourhood level, ensuring no communities are left behind.”

A spokesperson for the Department for Work and Pensions said it is launching a call for evidence on Monday "to shine a light on the route to a brighter future for those who have for too long been left behind".

Work and pensions secretary Therese Coffey said: "Coming out of this emergency, as we shall, people will need hope and opportunity more than ever – and we will not be blown off course.

"Now is the time to be laying the groundwork for the future when people will be able to, and striving to, progress.

"Employers and other organisations have so much expertise to offer in this area, with first-hand experience of raising talent up, helping it flourish and boosting families' futures.

"And they can help us respond to the changing jobs market, by ensuring training and skills meet the demands of the coming decades and evolving industries."

The Covid Recovery Commission says it will publish two further papers before the end of the year, with a final report to follow in February 2021.

Additional reporting by agencies

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