How quickly your household or business will recover from Covid-19 when restrictions are lifted, may be down to where you live and what you do, according to experts at the University of Sheffield.
Researchers from the Department of Economics assessed household and business recovery risk at a neighbourhood level, showing significant inequalities even within Local Authorities (LAs) for some areas of the UK.
The study found that areas characterised by higher deprivation had fared worse during the pandemic and carried a higher risk of poorer recovery outcomes, this is due to the people living there being more likely to have experienced increased financial insecurity and higher uptake of benefits during this time.
People employed in sectors impacted from social restrictions such as retail and hospitality have also experienced larger losses in hours worked, and it is in these areas targeted interventions are needed to promote economic recovery as final public health restrictions are lifted.
Nationally, three communities in Blackpool make up a third of the areas in the top ten in the UK exposed to household recovery risk; South Promenade and Seasiders West Blackpool, Central Blackpool and North Shore Blackpool.
For small and medium enterprises, the risk is characterised by an increase in debt, the effects of ‘zoomshock’ causing a reduction in demand for goods and services and loss of workers where these businesses dominate.
The top ten areas exposed to recovery risk are all in London. Canary Wharf in Tower Hamlets, the City of London area and Old Street and St Luke’s, Islington make up the top three with the highest risk in the UK.
Co-author of the CoPERI study, Dr Enrico Vanino from the Department of Economics, said:“The dashboard shows communities that have been more affected by the pandemic; helping to identify places within local economies that face substantial risk of hardship once the last of the public health measures are lifted, and allow Local Authorities to tailor their interventions more effectively.
“The South Yorkshire region in particular will face some unique challenges, with a concentration of areas with high levels of risk for both households and businesses. This could create a problematic feedback loop slowing the economic recovery, as households struggle financially, local businesses will experience shrinking demand and in turn not be effectively supported in their recovery without intervention.”