Covid: Lockdown cost Yorkshire economy £8bn, report says

Yorkshire and the Humber's economy shrank by more than 20% in the first coronavirus lockdown, figures show.

The financial hit from the pandemic between April and June cost the region £8bn, according to the Office for National Statistics.

Hotels and restaurants were worst-hit, with trade down 77%, while construction fell by more than 40%.

Wedding photographer Emma Dodsworth said her business being "wiped out in one fell swoop" had been devastating.

The figures show negative growth in gross domestic product (GDP) for all four UK countries from April to June, compared with the same period a year earlier.

In England, the hit to Yorkshire and the Humber's economy was broadly comparable to other regions, with the West Midlands seeing the biggest fall at 21% and the smallest declines in London and the North East.

Before lockdown, Emma Dodsworth spent 20 years building up a thriving business in Ryedale, North Yorkshire, and was booked up a year in advance.

But the moment weddings were restricted, the cancellations flooded in and she has been unable to get government support because she is partially self-employed.

In 2020, she had 30 weddings booked but only did six, which "absolutely sliced" her income. She said seeing her business crumble had a big impact on her anxiety.

"I ended up getting myself in an ambulance, I didn't know how to deal with it and I didn't realise it was anxiety," she said.

"It was the financial impact. Not knowing how you were going to pay the bills, it was just terrifying."

Ms Dodsworth has since been reliant on her part time job in retail but said she was frustrated that a lot of self employed people had been "forgotten by the government".

She said she had no idea what the future would bring for her business, adding: "It's very, very scary".

Massage therapist Helen Otterburn lost half her income overnight when lockdown meant she could no longer go into workplaces to offer treatments.

Her entire operation was then frozen when she was forced to close her clinic in Helmsley but she still has overheads to pay.

Ms Otterman, a massage therapist for 28 years, has been eligible for some government support but said it did not cover what she had lost.

She said she was worried about the long-term impact and added: "It's going to take a long time to get back to where we were, if ever."

A survey of 1,400 UK firms by the Federation of Small Businesses said 5% were currently on the brink of closure, an all-time high.

Earlier this month, the CBI called on the government to give more financial help to struggling firms ahead of the Budget in March.

The BBC has asked the Treasury for a comment on the Yorkshire figures.

The government has previously said it has put in unprecedented levels of support to help businesses survive the crisis including loan programmes, deferring of tax payments and the furlough scheme.

Last month, Chancellor Rishi Sunak announced £4.6bn of additional help for businesses in the worst-affected sectors which was extended until the spring.

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