Business

‘Grown men come in here crying’: how Tory cuts have hit Blackpool hard

It is 14 years since the Conservatives last held their conference in Blackpool, but the resort has been on the lips of every cabinet member in Manchester this week.

“Children born in Blackpool are no less gifted than those in Beaconsfield but their GCSE results, job prospects and university offers don’t reflect that. That’s wrong,” said Michael Gove, the secretary of state for levelling up.

In his speech, Sajid Javid, the health secretary, pledged to tackle the inequalities that meant healthy life expectancy was 20 years higher in Richmond-on-Thames than in Blackpool.

Boris Johnson could also give the Lancastrian seaside a namecheck in his conference address on Wednesday. What the prime minister probably will not mention as he takes to the podium is that some of Blackpool’s most deprived and sickest people will be £1,000 a year worse off as a direct result of decisions taken by his government.

From Wednesday the £20-a-week universal credit uplift, introduced during the pandemic, will be scrapped, despite sharp rises in the cost of living, including fuel increases that will leave the average prepayment meter customer £153 poorer this winter.

If 57-year-old Johnson lived in Bloomfield, Blackpool’s most deprived ward, he could expect to already have lived 10 years in bad health and to then die in just another 10 years hence.

There are high levels of alcohol and drug abuse in the area and various deprivation-related health problems, which local doctors have privately called SLS (shit life syndrome).

Most of the 18 million people who visit Blackpool each year will spend time in Bloomfield, the location of the Central Pier as well as the town’s football club. The roads nearest the prom are lined with bargain B&Bs offering rooms for as little as £20 a night.

Since July 2020 the area has also served as the base of Blackpool’s Voice, a food bank, free counselling service and charity shop. A hand-written sign says the organisation is there for “homeless, vulnerable, well anyone, needing help”. By the door are crates of bread to be taken, no questions asked, by anyone who cannot afford to buy a loaf.

The organisation is run by Sue Davies, a trained counsellor, who is bracing herself for an influx of new clients when the cut to universal credit kicks in as fuel and food bills rise. The picture, she says, is already bleak.

About 29.2% of Bloomfield households experienced fuel poverty in 2018, almost three times the English average. The child poverty rate is 63.4%, almost four times the English average.

“People are going to have to choose between food and electricity,” Davies said. “To be fair to the government they did always say [the benefit rise] was temporary, but people have got used to it. That £20 made everything that little bit easier.”

Despite only being in operation for 14 months Davies has noticed an increase in desperation. “We have grown men come in here crying when they ask for a food parcel, men who never ever thought they would be in a position where they couldn’t provide for their families,” she said.

On Monday an army veteran came in saying he had been referred by the council. “That made us laugh. We get no funding from the council or the government and yet they are referring people to us,” said Davies. The man was living in a B&B with his family and needed help applying for social housing.

On an industrial estate on the outskirts of town, Blackpool’s food bank is preparing for its busiest winter yet. Only founded in 2012 it recently outgrew its premises and now employs six members of staff who work with 50 volunteers to deliver surplus food to 70 partner organisations – including Blackpool’s Voice, as well as schools and nurseries.

“We’re expecting a real spike in demand this winter because of the universal credit cut,” said Paul France, the food bank’s chief executive. At the end of October, the food bank will roll out the first of 10 mobile pantries to deliver more food to Blackpool’s most deprived communities.

Blackpool has the second highest male suicide rate in England and there were more than 500 hospital admissions for intentional self-harm in 2018/19.

Shaun Smith, 45, is one of many residents struggling with mental health problems and receives the personal independence payment as well as universal credit. He suffers from depression, anxiety and panic attacks. This week he has been sleeping badly, worrying he is going to be evicted.

Like many of the 8,000 people who migrate to Blackpool each year he had hoped for a happier life by the sea but it wasn’t to be. He recently split up with his boyfriend and says he is trying desperately to stay off the drink but “it’s hard in Blackpool with so many bad influences everywhere”. He is taunted by painful memories, including the suicide of his brother several decades ago.

Smith is among 17,000 people in Blackpool receiving universal credit and worries about losing the £20 uplift. He has two dogs to care for and spends a lot on public transport getting to medical appointments.

Conal Land, from Blackpool Citizens Advice Bureau (CAB), fears the organisation’s workload will soon go from extremely busy to “astronomical”. He recently rang clients set to lose the UC uplift to gather first-hand testimony about what the money meant to them.

One woman talked of how hard life had been since she lost her partner to Covid-19. “He worked and I always had little part-time jobs, we did OK. Now, I’ve been ill, had to use food banks and find cheap food that’s going out of date,” she said.

“I will struggle to keep up with my debt repayments,” said one man. “The extra £20 per week gave me a chance.”

Land included a selection of testimonies in a letter last week to Blackpool’s MPs. With both of the town’s constituencies now Conservative for the first time since 1945 he hoped a last-minute reprieve might be won.

Tracy Hopkins, chief executive of Blackpool CAB, warned the MPs that the reduced benefit would take £17.6m a year from the local economy. “This is money that local people would spend in shops, cafes and local businesses. Blackpool’s economy cannot afford to take this hit at a time when many local businesses are just beginning to recover from the pandemic.”

Blackpool has already suffered disproportionately from government cuts. The Health Foundation thinktank thinks it will be hit hardest by the universal credit cut, and this week warned that the local authority had had one of the largest reductions in its public health grant, amounting to £43 per person a year.

The government is investing in Blackpool with a Towns Deal, worth £39.5m. That money is to be spent on seven projects, including the conversion of the magistrates and civil court into a tourist attraction, a carbon-neutral university campus for Blackpool & The Fylde College, and a £4.5m modernisation of the Illuminations.

All of which was good and well, said Land. “But it won’t do anything to help all the people already struggling.”

Business

NCAA to punish airline operators for delayed tickets refund

N46bn debt: NCAA threatens to withdraw airlines’ licences

The Nigerian Civil Aviation Authority, NCAA, has expressed its readiness to punish any airlines that delay tickets refund to the passengers.

The Director of Public Affairs and Consumer Protection, NCAA, Michael Achimugu, made this known in a statement on Tuesday in Abuja,.

He said tickets refund compliance regulations remain central to the NCAA’s consumer protection agenda.

According to him, the time had come for airlines to adhere strictly to the refund timelines as failure to comply will attract immediate sanctions under Part 19 of the regulations.

The director said Part 19 of the NCAA Regulations 2023 aimed to safeguard passenger rights.

Speaking on a specific case involving Air Peace, the director stated that the airline had exceeded the stipulated refund timeframe, compelling the NCAA to demand swift compliance.

Achimugu added that the incident has triggered the regulators to take decisive action against any form of non-compliance.

“Cash purchases must be refunded immediately, and by cash. Refunds for electronic payments, including mobile apps and internet banking, must occur within 14 days.

“Over the past year, the NCAA has worked with airlines to enhance passenger experience and resolve operational challenges.

”The Authority has maintained a balanced approach, fostering cooperation between operators and regulators to promote better service delivery.

“Most airlines have been responsive, and the relationship between operators and the NCAA has significantly improved, benefiting passengers across the board,” he said.

Achimugu, however, said that the era of leniency had ended with stricter enforcement measures now in place, adding that airlines that failed to meet the refund timelines outlined in the NCAA Regulations 2023 would face sanctions

Business

AfDB Offers Solutions To Nigeria’s Debt, Forex Challenges

The African Development Bank (AfDB) has provided key insights into how Nigeria and other African nations can address their growing debt burdens and foreign exchange challenges.

The Bank’s Vice-President for Economic Governance and Knowledge Management, Prof. Kevin Urama, told the News Agency of Nigeria (NAN) that strategic borrowing and political stability were critical for growth.

Speaking on Nigeria’s debt profile, Urama, the AfDB’s Chief Economist, said that public debt itself was not inherently problematic.

“Debt for growth is a known way of growing economies. However, the quality and structure of the debt are crucial factors in determining its long-term impact,’’ he said.

The professor raised concerns about the growing trend of short-term, high-cost commercial loans in African countries, which came with higher refinancing risks.

“The problem arises when countries borrow short-term loans and are unable to repay them before investments mature. This cycle forces countries to continuously refinance, often at unfavourable terms.

“It is therefore important for African governments to focus on borrowing longer-term loans with lower interest rates, underpinned by clear investment plans that can generate returns capable of repaying the debt.

“For Nigeria, the key question should not be whether the country is borrowing more, but rather how borrowed resources are being used.

“If borrowed funds are invested in infrastructure that drives growth both in the short and long term, it is a smart move,” he said.

On foreign exchange and trade, Urama pointed to Africa’s dependence on imports, specifically food, as a critical area for reform.

He acknowledged the ongoing disruption of global supply chains due to geopolitical tensions, including the war in Ukraine, which had affected wheat imports to Africa.

The professor, however, urged African countries to address their dependence on imports, especially when the continent was home to vast agricultural potential.

“Africa has no business importing wheat from Ukraine because we have 65 per cent of the remaining arable land in the world.

“We also have a vibrant, youthful population eager to engage in productive activities. Africa has the capacity to feed itself and the world.

“And this can be achieved through initiatives such as the AfDB’s AgriPreneur and Special Agro-Industrial Processing Zones (SAPZ) programmes which are crucial tools for unlocking the continent’s agricultural potential,’’ he said.

Urama cited Ethiopia’s success in becoming a wheat exporter within just four years of focused agricultural investment.

He said this was a demonstration that Africa could transition from food dependence to food self-sufficiency and even become a global exporter.

On the broader economic challenges facing Nigeria and other African countries, the professor reiterated the importance of political stability and sound macroeconomic policy management.

Urama pointed to Botswana as an example of how stable governance and good policy could reduce capital costs, increase foreign investment, and improve economic growth.

“When political stability and good governance are in place, the cost of capital decreases, and investments flow more freely,” he said.

According to the AfDB vice-president, Africa’s economic challenges are solvable through long-term strategies focused on stability, sound economic management, and a shift towards local production and value addition.

“By doing so, African countries can reduce their dependence on external financing, stabilise their currencies, and ultimately foster sustainable economic growth,’’ he said.

(NAN)

Business

BOI disburses N22.89bn to 29 manufacturers

The Bank of Industry (BOI) says it has disbursed N22.89 billion out of the N75 billion manufacturing sector intervention fund to 29 manufacturers.

Its Managing Director, Dr Olasupo Olusi, made this known on Monday at the first BOI interactive session with the Organised Private Sector in Abuja, which was monitored virtually.

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Olusi said that out of the N75 billion manufacturing sector fund, other 20 projects valued at N6.3billion were at different stages of disbursement.

He said that the interactive session was a collaborative milestone, a reflection of shared vision to create a thriving industrial sector.

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According to him, it is also a critical step in driving Small and Medium Enterprises (SME) development through strategic partnerships.

“Recently, we signed a Memorandum of Understanding (MOU) with your esteemed associations.

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“This agreement underscores a simple truth that we cannot transform Nigeria’s industrial landscape alone.

“The journey to sustainable economic growth must be fueled by collaboration, innovation, and a shared resolve to address systemic challenges,” he said.

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The BOI MD said that under the signed agreement, the bank had already begun making strides through joint efforts on the Federal Government’s loans programme.

He said that the event, with the theme, “Driving SME Development through Strategic Partnerships” challenged everyone to reimagine how we work together.

Olusi said in practice, this meant shared responsibility as the bank’s role was not only to provide financing but also to support an enabling environment for businesses to thrive.

“This includes addressing infrastructure gaps, regulatory bottlenecks, and access to markets.

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“However, your expertise and insights are essential to inform these efforts.

“On collaborative innovation, we must work together to introduce technology, sustainability, and skills development as core pillars of SME growth.

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“We are concerned about your most pressing challenges, your operations, how we can further align our programmes with your needs and the innovative solutions we can pursue together to accelerate growth,” he said.

Olusi urged the organised private sector to keep in mind the six thematic areas of impact that BOI was focused on in line with President Bola Ahmed Tinubu’s renewed Hope Agenda.

He listed them to include MSME development, digital transformation, youth and skills development, climate and sustainability, gender inclusion and sectoral growth.

“These are not just BOI’s priorities; they are national imperatives and they require your active participation to succeed.

“The Bank of Industry stands as your partner in progress, ready to support at every step of the way as together we have the potential to transform Nigeria’s economic landscape,” he said.