Covid-19 lockdown hits Yorkshire and the Humber economy hard

Covid-19 lockdown hits Yorkshire and the Humber economy hard

The value of goods and services produced in Yorkshire and the Humber is falling by £170 million per day during the lockdown, making the region one of the hardest hit by measures introduced to counteract the Covid-19 pandemic.

That’s according to UK Powerhouse, a report by Irwin Mitchell and the Centre for Economic and Business Research, which estimates a daily drop of 37% in the value of goods and services produced in Yorkshire and the Humber, where manufacturing is a bedrock of the regional economy.

Irwin Mitchell said that manufacturing contributes an estimated 14.3% of the local economy, in comparison to 9.2% for the UK as a whole, and it has experienced significant challenges during the lockdown.

A fall in consumer spending has meant that manufactured goods are being demanded less as final products, while many industries that manufacturers sell into, such as wholesale, retail and food services, have been shut down due to the Covid-19 lockdown restrictions.

Professional service industries, which are generally less affected due to remote working capabilities, are less prominent in Yorkshire and the Humber. This has further increased the losses associated with the lockdown.

Irwin Mitchell said that the number of people working from home in the region has increased by 1.8% since 2014, taking the total figure to 4.8%—the highest proportion in the north of England.

Paddy Sturman, partner and head of business legal services at Irwin Mitchell in Leeds, said: “In absolute terms, the Yorkshire and Humber region does not fare as badly as some other regions but in relative terms, it is one of the regions with the greatest daily GVA (gross value added, or value of goods and services produced) falls.”

“As we all move to a ‘new normal’ post-lockdown, different regions are going to come out of this at their own pace and tailored support in key areas could prove vital to economic recovery.”

“The last election saw talk of ‘levelling up’ the economy and a challenging task has undoubtedly become harder given the impact of coronavirus. Construction and manufacturing are key areas but the crisis has also highlighted the importance of remote working to business viability.”

“The shutdown to halt the spread of Covid-19 is having a dramatic effect on the whole of the UK economy and certain regions are expected to weather the storm better than others. The report offers an insight into what form regional support might need to look like in Yorkshire once we start down the road to economic recovery.”

Categories: Community, Coronavirus, News

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Mark Dugdale

Mark is the Editor of Yorkshire Legal. Mark welcomes articles, letters or feedback from readers and can be reached by emailing