ALMOST 17,000 jobs could be lost across the North-East if the government does not underwrite the losses suffered by businesses, the Tees Valley Mayor has today revealed.

This afternoon Tees Valley Mayor Ben Houchen said he was calling on the government to 'underwrite losses of businesses' for twelve weeks to help them deal with the fallout from coronavirus.

Mr Houchen said analysis from the Tees Valley Combined Authority showed that COVID-19 could cost the region almost £1bn in 2020 - equal to almost 17,000 jobs - as he urged government to support the retail and chemical sector.

He warned failing businesses would mean families losing incomes at a time of great uncertainty, as well as further economic pressure on businesses in the region.

Mr Houchen said: “The Government has adapted and evolved its medical response to Coronavirus, now needs to significantly ramp-up its action on the needs of businesses large and small to protect jobs.

"This should be for businesses of all sizes and sectors. From fitness instructors, pubs, bars and cafes most at risk in the immediate term, to the industrial businesses like those in the chemicals sectors that will be the backbone of our economic recovery."

Last night, Prime Minister Boris Johnson addressed the nation and advised people to avoid social venues including pubs, clubs and theatres.

Since then, big names including ODEON and CineWorld have closed their North-East venues 'until further notice' as a result.

Meanwhile, The Northern Echo understands that firms across the region have had to 'lay' employees off following a sharp fall in demand.

Mr Houchen said: “We are in the midst of a global crisis not seen before, and given the unprecedented challenges for individuals, families, business and public services we need to throw out the rule book on ideology and political motives and take whatever measures are necessary to preserve lives and minimise economic damage over the coming weeks.

“My team and I are 100% focussed, but it’s clear the scale of the challenge means we need resources far beyond what is normally available. Businesses now need twelve weeks’ support at least to get them through the expected peak of the crisis, the alternative is just unthinkable.

“On social care and health support I am doing all I can to help support our local councils and NHS Trusts to deliver the services that they must provide."