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Economy & Infrastructure Committee
Long-term (economic) recovery from Covid-19 (pdf)
Published: 2nd March 2021
The report sets out the challenges and opportunities facing the Welsh economic recovery from the Covid-19 pandemic. Some challenges pre-date the pandemic, but there was consensus that this recovery should be entrepreneur-led and work should start now to prepare the business community for future economic shocks, notably climate change.
The response to the pandemic by Business Wales and the Development Bank was praised and is seen as one of the big positive stories. However, the recovery will require “significant investment” in improved economic and business intelligence, skills and innovation. Investment in “jobs of the future” involving green technology should also be a priority.
One of the major notes of concern by the Committee and witnesses was the prospect of relatively high-paid, secure jobs being replaced by low-paid, insecure and casual work. There were fears that workers’ rights will be eroded and this continued casualisation of work would impact young people in particular. Some witnesses called for the Welsh Government to properly balance quantity of work with quality.
The Committee recommended that the Welsh Government should support the living wage as a condition of recovery funding, promote fair work generally and introduce equality conditions into its economic contract.
Additionally, there was support for extending business rate relief in the tourism, hospitality and retail sectors through 2021-22 (currently it’s set to end in June 2021).
There was a commitment from the Economy & Transport Minister, Ken Skates (Lab, Clwyd South), that the recovery won’t result in those hit hardest by the pandemic (BAME communities, the disabled, women in low-paid positions) being left the furthest behind by the recovery – but there was little detail on how this could be achieved.
Real fears were raised about a “Covid generation” of young people who will be locked in a cycle of long-term unemployment similar to those impacted by the Great Recession. Some witnesses predicted mass graduate unemployment as they’ll be displaced by experienced adults when looking for jobs after leaving university.
Another area seen to be worthy of detailed consideration is the future of transport. It was unclear how public transport use will change as a result of the pandemic and consumer confidence, while money given to local authorities for pop up active travel seems to have been “issued in haste”. It was accepted that the evaluation of active travel investment needs signficant improvement at Welsh Government level.
The most useful reform was deemed to be regulatory change, but a Bus Bill (which would’ve re-regulated bus services) was withdrawn due to the pandemic.
