A cross-party group of MPs have warned that there is a real risk
that the worst effects of Covid-19 could fall on those who are
least able to afford it in Wales, a nation whose economy was
already vulnerable to economic shocks before the pandemic.
In their interim report on the Welsh economy and Covid-19 the
Welsh Affairs Committee describes the impact that the virus has
had to date on businesses and people throughout Wales. It also
details support provided by both the UK and Welsh Governments,
and focuses attention on some of the sectors at particular risk
during the crisis.
Before the crisis Wales was ranked second to last in a list of 12
UK nations and regions for Gross Disposable Household Income and
had a poverty rate of 23%. The nation also has the second highest
levels of employment in sectors most exposed to the headwinds
caused by virus countermeasures, namely retail, food and drink,
and arts and leisure.
The Committee’s report warns that Covid-19 has created a ‘perfect
storm’ for key sectors of the Welsh economy. For some of Wales’s
most important employers, the short-term impacts of the pandemic
have converged with longer term challenges to restructure to
deliver sustainable growth.
The Committee intends to return to this report in the Autumn to
make recommendations on how to reduce the risks of the pandemic
and to build a successful and sustainable economic recovery for
Wales.
The Chair of the Welsh Affairs Committee Rt Hon said: “The
coronavirus pandemic has dealt a devastating blow to families and
businesses across Wales, with the burden falling most heavily on
communities which were already vulnerable prior to the crisis.
Both UK and Welsh Governments are responding to this crisis with
unprecedented levels of support."
"Our interim report shows in raw numbers the scale of the
economic challenge now facing our nation. Key industries are
facing a perfect storm and there is a real prospect of
unemployment returning to levels not seen for decades in Wales.
Wales needs a sustainable recovery that leads to a stronger and
more resilient economy.”
