Economic Conditions

Although London has been designated for a new EU Convergence Programme, the successor to the current Objective One Programme, there has been a renaissance in many parts of London over the past 5 years.

However, prospects for the global and UK economies have become markedly less favourable over the last twelve months, especially in contrast to the long period of economic expansion to 2007.

A monthly evidence report is being produced to demonstrate the impact of the recession at a local level. To view the latest review (along with previous editions and other relevant information), please visit the section relating to ‘Evidence’.

This includes:

  • Recession: Impacts and Issues, CCC, 2008
  • ‘Rural Economies Recession Intelligence’ – the Commission for Rural Communities, 2008
  • Households have less spare cash, BBC, 2009
  • South West Rated as Best ‘Recession Retreat’, LondonEnterprise, 2008
  • What are you giving up in the downturn? BBC News. Tuesday, 13 January 2009
  • RDA Summary of the pre-budget statement, 2008
  • VAT rate cuts – what is the impact, Peter Wills, 2009
  • There is a great deal of information now starting to become available and we will endeavour to share the most informative pieces on this site.
  • Action at an EU, National and Regional Level
  • The emerging economic crisis over recent months has prompted a range of action from the central government to address the situation.

As well as the decision to provide emergency funding to help stabilise the financial situation, a number of committees have come into force to focus on assessment and action at the national and regional levels. These include the National Economic Council, the Regional Economic Council, the Council of Regional Ministers and region-level groups or task forces.

The government and the South West RDA have developed a joint response to changing economic circumstances which provides a current snapshot of the regional economic picture and details the help and support that is available to both businesses and individuals.

Business Support: With Government and the SWRDA’s delivery partner, Business Link, the SWRDA are committed to simplifying and improving access to all of the business support products they invest in and implement. The new “Solutions for Business” portfolio will simplify the support products available and ensure future investment is directly targeted at the areas that are most important for the future of the regional economy.

In light of the current economic climate, they have also produced First Steps: Action for Recovery this document outlines their plans and intentions to refocus and enhance business support in the coming months.

Also available here:

  • BERR Action for Business Update – PBR 2008 and other activity
  • European Economic Recovery Plan – Impact on Cohesion policy, SWUKBO, 2008
  • New Help for Businesses Facing the Credit Crunch, Business Link, 2009
  • Real help with finance now: The government has introduced a new package of financial measures, as part of its Solutions for Business, to provide real help to firms through the economic downturn. If you have short-term working capital constraints or are looking to invest to grow your business these schemes could help you.

A local response

The GovWaste have prepared and agreed on a response and solutions which can be found below. This has also been fed into the South West Economic Task Group to help inform their deliberations.