North east faces more job losses

Some people will find themselves struggling to keep a roof over their heads as their income suddenly drops because of the effect of a business’ demise.

But the impact is more far-reaching. The work of social landlords goes beyond the provision of housing. It also involves the delivery of many vital community-based services seeking to tackle financial exclusion, unemployment and worklessness.

When thousands of job losses hit an area, all these services are put under extra pressure.

Within Coast & Country’s heartland, steelmaker Corus is shutting its Teesside Cast Products plant, which will lead to the loss of 1,600 direct jobs and anything upwards of 4,000 indirect jobs.

The fallout will lead to a sharp increase in unemployment levels, which are already higher than the national average, additional dependency on state benefits and a rise in rent arrears.

Strong partnership working will be essential, with Coast & Country and other statutory, voluntary and stakeholder organisations all pulling together to help the area fight back.

A jobs blow of such large proportions must not be allowed to affect potential investors’ confidence in an area.

It is vital that money continues to be invested in regeneration schemes to replace outdated and poorly designed properties, environments and infrastructure and to help develop new businesses or bridge a tough period for otherwise viable commercial operations.

Some of this may mean the need for additional state support. If the government can find huge amounts to invest in the banking sector, which created the current recession, then it should be able to identify funding to alleviate the social and economic consequences of a large-scale plant closure.

Iain Sim, chief executive, Coast & Country Housing