CITY’S COVID JOBS SHOCK
CARDIFF COULD FACE 10,000 JOB LOSSES, AN £18M COUNCIL BILL AND A HUGE RISE IN CAR USE DUE TO COVID-19, REPORTS WARN
PLANS are being drawn up to help the local economy in Cardiff recover from the impact of the coronavirus.
Job losses and many more people driving cars are feared as the social distancing rules are relaxed.
Unemployment in Cardiff could be over 50% higher for at least two years, according to the Office for Budget Responsibility.
The hardest-hit sectors will likely be hospitality, leisure and retail.
In three new reports, bosses at Cardiff council have warned of the economic shock and set out how they are beginning to plan how to help the city recover after Covid-19.
In a report to cabinet, council chief executive Paul Orders said: “The city’s economy will continue to face significant challenges due to the persistent effects of the crisis.
“The crisis will have a disproportionate impact on some economic sectors, including higher education, retail, leisure and the nighttime economy, sectors concentrated in Cardiff’s city centre.”
The council will try to keep workers in jobs, link those out of work with new opportunities, provide training, and help young people apply for colleges and universities.
Mr Orders said: “The Covid-19 crisis will have equally profound implications for Cardiff as the deindustrialisation of the 1980s and the financial crisis of the 2010s. Cardiff has faced and successfully met such challenges before.
“In a post-Covid city, economic success will go hand in hand with environmental and social improvements. Talented people will continue to be attracted to vibrant city lifestyles, but there will be a new emphasis on clean and attractive environments, health and wellbeing.
“The positive decarbonisation effects of the recent crisis have demonstrated that environmental change can be delivered. The challenge for Cardiff is to make it stick, so the city can enjoy the long-term economic rewards.”
By the end of June, Covid-19 will have cost the council about £18.4m, according to Chris Lee, the corporate director of resources, in another report to cabinet. The virus will also have lost the council more than £11.4m in income.
Some of the extra spending includes £5.1m on personal protective equipment (PPE), £2.9m on adults’
social services and £2.1m on free school meals. The Welsh Government will reimburse some spending on things like free school meals, supporting homeless people and buying extra mortuary spaces.
The impact could be “catastrophic” on Cardiff’s businesses, transport, and environment, according to Neil Hanratty, director of economic development, in his report to cabinet.
Mr Hanratty said: “The coronavirus epidemic is an unprecedented economic issue for our city. Any measures, however, must first and foremost consider the safety and health of residents, visitors and workers.”
Without proper support, he warned more than 10,000 people could lose their jobs. He also warned of a shift in how people move around the city, as social distancing rules remain on public transport. Trains have seen a 95% drop in passengers, and buses have seen a drop of 90%.
Mr Hanratty said: “Urgent measures are needed to stop an unprecedented potential shift to journeys by car. Unless a safe but effective model for city centre and local centre functioning is established, this could have irreparable detrimental impacts upon the city as a whole.”
Reacting to the recovery plan, Nick Newman, general manager of the Philharmonic pub and chair of the Cardiff Licencees Forum, called for more planning on how to reopen the nighttime economy. Mr Newman said: “There’s a lot of work going on behind the scenes, with the council, For Cardiff, and ourselves in the Licensees Forum. We would have liked things to be progressed a bit further, but that’s in the hands of the Welsh Government. We feel a bit that we’re behind the game compared to England.
“I would like to be further forward with planning for the nighttime economy. But it’s a risk. The economic risk to Cardiff has to be balanced against the health risk, we totally understand that.”
How Cardiff changes during the recovery post-Covid should be decided by a randomly selected representative panel of citizens, according to Liberal Democrat councillors.
Councillor Rhys Taylor, leader of Cardiff Liberal Democrats, said: “Evidence shows when you have citizens’ assemblies, people are often more ambitious and radical than decisionmakers normally are.
“If we hand the broad questions to a diverse panel of citizens, they’re more likely to come up with creative ideas and to push the boundaries. And we would get a broader community buyin of the final product.”
Cllr Taylor criticised the recovery plans for focusing more on fixing the local economy and not enough on allowing friends and families to meet up again.
He said “The vast majority of people want to meet with friends and family in a safe environment. That doesn’t necessarily mean opening the citycentre shops. After weeks and weeks of not seeing people, I’m not bothered about going to shops in the city centre. I want public spaces to be able to see friends and family.”
More details about the plans to help Cardiff recover from the economic shock should surface next month, as a cabinet report will look at what leading economists say about the future role of cities post-Covid. The report will also set out a strategy on how the council should respond to the economic crisis.
We feel a bit that we’re behind the game compared with England