Basildon councillors have backed a series of proposals aimed at tackling poor mental health in the workplace.

It was discussed during an Economic Development and Growth Committee meeting on Thursday after a council report said it could be costing the borough’s businesses £98.8million each year.

The wide range of schemes will see the council using social media, websites and newsletters to advise businesses on how they can support their employees.

The report notes it is better to “inform businesses of the benefits of improved mental health support for their employees rather than trying to impose further initiatives on them”.

Councillor Andrew Schrader, who chaired the meeting, said: “Research from The Centre for Mental Health shows that mental health related absence in the UK costs an average £1,300 per employee every single year.

“This suggests that the annual financial impact on businesses in the Basildon borough could be £98.8million, which must be having a negative impact on productivity.

“We’re committed to doing all we can to support business growth in the borough and promote it as place to invest.

“Engaging with employers and helping them to make positive changes is key to this, including ensuring there is a clear focus on staff wellbeing.”

At the same meeting, councillors agreed on proposals to spend £2million on supporting businesses and ensuring new sectors of employment will be available to residents.

The aim is to encourage new businesses into the borough and provide skills training due to fears that up to 20 per cent of all low skilled jobs in Basildon could be lost to automation in the coming years.

The money will be shared between three major projects. An “innovation warehouse” will received £750,000, which is part of a bid from the South East Local Enterprise Partnership to convert the Green Centre to the south of the A13 into a warehouse full of specialist equipment linked to science, technology, engineering and maths.

An unconfirmed amount will be allocated to a new “digi hub” in the centre of town as is described by the council as being a working space for micro businesses in the information and communications technology sector.

Additionally, small businesses will get financial support through a newly established grant fund of £100,000 and guidance from an “advice store” which will have a budget of £50,000.