RISING homelessness, an increase in domestic violence and more businesses failing.

A report to Newport council says the credit crunch is going to have a major impact on the city. RUTH MANSFIELD reports.

A REPORT to Newport council paints a bleak picture of the problems the city is set to face as the recession bites.

The city council's cabinet on January 20 is being told that the impact of the recession is set to include:

  • A rise in crime and domestic violence, shown by previous economic downturns
  • A rise in business failures and lower income from rates
  • More pupils staying on at school - unemployment rises - possibly affecting the funding of sixth forms. A Higher demand for free school meals
  • More people becoming homeless. Higher call for advice on debt
  • Lower use of leisure facilities such as leisure centres - meaning the council may have to consider changes in opening hours
  • A higher demand for housing and council tax benefits and potentially a higher demand for social care assistance especially in the field of mental health
  • Lower income from planning and development control, land charges, premises licensing and the city's landfill site To help, the report says, the council should take measures to help including reducing the payment time for invoices of goods and services it orders to help with the cash flow of small and medium-sized businesses.

The report states a discussion between the Assembly and the Welsh Local Government Association resulted in recommendations including lowering the payment time of invoices to suppliers from 30 days to 10 days.

The most obvious impact of the recession, the report says, is the slowing down of the city regeneration programme, especially for the building of new apartments.

A review of the housing market is being planned, and the council should be allowed more leeway to use sites like the Old Town Dock for purposes other than housing.

The report also suggested working with registered social landlords to help the housing market.

Ed Townsend, deputy leader of the council and Cabinet member for economic development and regeneration, said: “The report is to identify the difficulties people and institutions could face and the means to help them through them.”

Matthew Evans, leader of the council, added: “We hope to find ways we can help citizens.”

Taxi firm would welcome early payment

A Newport taxi firm is one of the many suppliers to the council who would benefit from the new action being taken to pay invoices within 10 days.

Tom Lavender, director at Dragon Taxis, said the company had been affected by the credit crunch and had lost 12 of their 200 self-employed drivers because of it.

He added this new move would definitely help but called for all invoices to be paid within 30 days to really help the problems arising.

He said: “If everyone paid within 30 days we’d have a great improvement in cashflow but we wait for some payments for nearly 60 days. We always make sure we pay our suppliers within 30 days.”

In the past the firm has had to take two creditors to court over not being paid in time.

Mr Lavender added: “Of course we have suffered during this time but you just have to keep on going and keep your head above the water. We would welcome this new move though.”

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Domestic abuse set to rise

WOMEN'S Aid agrees that the downturn could lead to more cases of domestic abuse.

Chief Executive of Welsh Women’s Aid, Paula Hardy said women were often given cash by their partners to run the household which could lead to violence and abuse when money was tight.

She added: "I think in terms of hitting a credit crunch now, it is well known that it is a key factor which exacerbates the problem. For us it is a very big concern and it is something we will be talking to other agencies about.

And a city homeless charity agrees that more people are set to be looking for a home as repossessions increase and people cannot pay their mortgage or rent because of job losses.

Kate Connolly, acting corporate director of Solas Cymru, said: “Many families may be unable to keep up with mortgage payments so it’s likely that we’ll see an increase in family breakdowns and loss of homes as financial pressure grows.

“Solas works closely with Newport City Council to turn people’s lives around. We provide training and pathways to employment and welcome any measures that will help us achieve these aims.”