Jobs lost to student loan chaos
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Version 0 of 1. Jobs are being lost from businesses clustered around Yorkshire and Lincolnshire's nine universities. Some report turnover down by 60% since September 2009 because student loans are being paid late. In December, the last week of term, the Government's student loan company said most had now been paid. But shops, cafes, bars and other businesses say the damage has already been done. Substantial staff cuts These students struggled to buy food following delays to their loans. Standing outside his near-deserted shop, Leeds entrepreneur Steve Smith says he has had to make substantial staff cuts. His small supermarket is on the ground floor of a new tower block of students flats 10 minutes walk from the city's two universities. "I am not the only one. I have four shops and we have come close to shutting down over the past few weeks," Steve tells the BBC's Politics Show. Even closer to the universities Lee Sweetman runs a bar and comedy club. They had been a popular student haunt. "It has certainly cost jobs. I have 50 people here from door staff and cleaners to managers. "Weekends our customers are mostly local people but on weekdays our business has traditionally come from students. They have not had the money because their loans have not been paid." Damage already done The student economy is vital for the region's nine university towns. On Friday December 11 2009 the Glasgow-based Student Loan Company announced that virtually all the 1 million or so students who had applied for loans had received the full amount or an interim payment. But the University of Leeds issued a statement saying that over 300 of its students had still not been paid. But for many people who worked in businesses geared to the student market the resolution of the long running financial fiasco has already come too late. See the full report on this Sunday's Politics Show for Yorkshire, Lincolnshire and the North Midlands at 12 noon on BBC1. |