Emerging from the national lockdown in Cumbria

Professor Frank Peck discusses the importance of the furlough scheme in keeping the Cumbrian economy on the road against the effect of Covid-19. As we emerge from a third national lockdown, we can look back at the data on business impacts and speculate about the new normal for the economy. The prevalence of use of the furlough scheme gives us some indication of the impacts that the pandemic has had on businesses across the country. Latest data available for local Authority areas shows that at the end of January 2021, 41,400 “employments” in Cumbria were in furlough which represents around 18 per cent of the eligible total. Significantly, this was the highest rate of furlough in all the counties of England, suggesting that the need for support for businesses has been more widespread in Cumbria than in other areas. The reasons for this are self-evident; Cumbria’s economy depends to a greater extent on the type of sectors and businesses that have been most badly affected by Covid restrictions, in particular accommodation, hospitality and food services activities that depend on the visitor economy. Furlough data at county level is currently not broken down by sector, but it is significant to note that the Local Authority Districts within Cumbria that depend most upon tourism display take-up rates well in excess of the County average (South Lakeland 26 per cent; Eden 23 per cent)