Published: Wednesday, 12th November, 2008 09:00
Battling the economic downturn
By Adam Hewitt
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Is Reading still well-placed to beat the credit crunch?
A CREDIT crunch summit has been held in Reading as businesses and welfare organisations feel the repercussions of the economic crisis.
Bosses of key companies and support groups were called to the summit arranged by MP Martin Salter and council leader Jo Lovelock.
Job cuts announced this week at firms like Yell and Virgin Media are just the latest evidence that Reading’s rosy outlook for withstanding the financial downturn has wilted in the past month.
The Chronicle reported in September that business leaders, politicians and economic indicators all showed the town well-placed to sail through the recession, but at Thursday’s meeting it was made clear that people had real fears for their homes and jobs.
Malcolm Lewis, from the Reading Community Welfare Rights Unit in Sidmouth Street, who attended the meeting at Reading Civic Centre, said: “The economic downturn is different this time because there’s been advance warning, but people’s worries are increasing.
“We’ve had 15 calls just this week from people worried about losing their jobs. People in the construction industry are saying there’s work until Christmas, but what about after that? Things are going to get worse before they get better.”
Gary Cranford, of Thames Valley Chamber of Commerce, spoke at the summit representing Reading’s small businesses.
He said: “Businesses in the Reading area were saying just in September that by and large things were OK and they were trading at similar levels to last year.
“But in the last four or six weeks that picture has changed quite dramatically, with estate agents especially having to review their businesses, and some having to lay off staff.
“Anyone in the service or manufacturing sectors is probably doing okay at the moment but will be concerned about what’s in the pipeline for the first quarter of 2009.
“People aren’t necessarily pressing the panic buttons right now, but they are asking about the 'what if’ scenarios if things get worse. A big barometer for businesses in Reading will be high street sales over Christmas.”
Reading West MP Mr Salter and Cllr Lovelock invited businesses, charities and public sector bodies to discuss the downturn.
Mr Salter said: “It was immensely useful, following on from similar events in Rotherham and Slough, and the participants will be reassembled in the New Year.
“I made it clear that there should be strong intervention from the state to prevent house repossessions wherever possible.
“It will be preferable for councils or housing associations to take an equity stake in a property and allow families in difficulty to stay put rather than suffer the enormous financial and social costs that inevitably follow repossession.”
Tory leader Andrew Cumpsty said his party missed the meeting because it was a Labour party event organised at short notice, and Reading East MP Rob Wilson added: “Even calling it a credit crunch summit politicises the event, making out the credit crunch is the cause of all our economic woes – it’s a way of supporting the Government’s economic record.”
He suggested practical steps councils and the Government could take to help people now, such as pledging to pay bills to small businesses within 20 days or allowing deferred VAT payments.
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