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Recession fears grow with wave of job cuts in region
Lloyds Banking Group is to axe almost 1,000 jobs and close three offices
A WAVE of job losses has hit the region’s economy with hundreds of posts axed in both public and private sectors strengthening fears Britain is sinking back into recession.
Yorkshire Bank warned cuts would be an “inevitable consequence” after parent National Australia Bank launched a strategic review of its UK operations.
It is not clear yet how many posts will go – Yorkshire Bank and sister Clydesdale Bank employ 8,300 people, of whom 2,000 are based in the region.
Meanwhile Lloyds Bank, which in the past three years has cut more than 30,000 jobs, announced another 1,000 will go with the closures of offices in Scunthorpe, Newcastle and Romford.
As well as the financial sector there was bleak news for traditional industries as Oakworth Joinery in Keighley, which went into administration last Friday, announced it is shutting down with the loss of 170 jobs, while engineering giant David Brown revealed up to 75 jobs could be axed at its Lockwood premises in Huddersfield.
Jewellery group Abbeycrest – formerly based in Leeds – also confirmed it has gone into administration.
And Sheffield City Council – which cut around 800 jobs in the last financial year – unveiled plans for another 570 redundancies in 2012/13.
Gary Williamson, chief executive of Leeds, York and North Yorkshire Chamber of Commerce said: “It is clear that the Yorkshire economy is still in an extremely fragile position.
“The ongoing euro zone crisis, combined with news of job losses, companies going into administration and poor economic data has hit business confidence.
“Businesses will try their upmost to grow their business and create jobs in 2012, but the Government must create the best possible environment to allow firms to do this.”
Mr Williamson called on the Government to reverse its planned 4.6 per cent increase in business rates – proposed for April 2012 – reinstate Empty Property Rate Relief and introduce a targeted cut to National Insurance contributions.
Yorkshire Bank’s chief executive David Thorburn implied there are unlikely to be any branch closures, which suggests the job losses will affect back room staff rather than branch employees.
Yorkshire and Clydesdale, which have 337 branches in total, expect to announce the result of the review in May.
Lloyds confirmed that 990 jobs are being axed as part of the strategic review unveiled last year, which outlined 15,000 job losses.
Oakworth Joinery was the UK’s largest independent window and door manufacturer and Keighley’s second biggest employer.
Joint administrator John Russell of The P&A Partnership said: “The business has been loss making with a declining order book for some time.
“Unfortunately, we have been unable to secure trading terms with Oakworth’s major customer who accounted for almost 75 per cent of orders.
“It is a huge blow to the workforce – many of whom have worked for Oakworth for a number of years.”
The administrators are now looking to sell Oakworth’s assets, including equipment.
Keighley and Ilkley MP Kris Hopkins said: “It is deeply regrettable that the administrators have been unable to reach an agreement to allow Oakworth to continue to trade. This outcome is massively disappointing for the workers affected, their families and the town.”
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Weather for Yorkshire
Wednesday 23 May 2012
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Temperature: 11 C to 24 C
Wind Speed: 12 mph
Wind direction: North east
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M Carter
Wednesday, February 8, 2012 at 11:51 PMFew business leaders were in management the last time there was a serious recession thirty or so years ago, and this is far worse than then. Many firms have not reacted quickly enough to cut their overheads. I suspect that for many, reality is only now starting to be understood. It will be another three or so years before the government and local authorities realise what is going on. In the meantime, they will make matters far, far worse by their policies.
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