Recent research carried out in Torquay shows that the town is a risk of recession as a result of the devastating impact of coronavirus. The research highlighted Torquay, some parts of Devon, and the Isle of Wight as the most vulnerable regions in England.
The regions have high numbers of hospitality and tourism businesses that have been hit the hardest by the economic impact of coronavirus. Additionally, the Torbay region has an elderly population.
The research was conducted by the Institute of Fiscal Studies, and the report was tabled during Torbay Council’s Cabinet meeting. The report indicated that 44 people will lose their jobs at Torquay harbour because Living Coasts has closed permanently.
Some hotels in Torquay have already closed down, resulting in massive job losses. The Imperial Hotel announced that it will lay off some staff members citing economic hardships due to the lockdown imposed by the government.
The report indicated that Torquay has the lowest per capita economic output in the country. This was attributed to the huge job losses, business closures, loss-making in many businesses, and a decline in productivity of the workers.
The researchers projected that 18,000 workers in Torbay will lose their jobs due to the impact of coronavirus pandemic. This will lead to one of the worst recessions in modern times.
Currently, around 16,000 workers in Torbay have been put under the government’s furlough scheme to cushion them from job losses. Additionally, the number of people seeking Universal Credit from the government has doubled in the last three months.
Therefore, the situation in Torquay shows an ailing economy. The government and local authorities should devise a workable recovery plan to save the town from recession. They can offer grants to the affected businesses to save them from collapse and the subsequent job losses.