Finance Minister warns of ‘very, very rough time’ as result of crisis

WALES is facing a “very, very, very rough time ahead” as post-covid-19 recession looms, Finance Minister Rebecca Evans warned yesterday.

Wales is already in a vulnerable position – it has more manufacturing jobs which cannot be done from home and is one of the most dependant parts of the UK on the furlough scheme. On the state of the economy after the recession, Ms Evans said: “All the evidence and all of the advice and expert opinion says that we are in for a really, really, really rough time in the period ahead. What kind of shape that recession takes I know is a matter for discussion.”

She would not go into great detail on how long the recession would go on for but described it as “stop/start”.

“I think what we can probably expect to see in terms of a recovery in Wales is a stop/start recovery which is probably going to take some time,” she said.

First Minister Mark Drakeford and Economy

Minister Ken Skates have said Wales does not have the “financial firepower” to maintain the furlough scheme without UK Government support.

Speaking about Wales being potentially hit harder than other parts of the UK, the Finance Minister added: “This is why some of the measures that the UK Government and Welsh Government have taken are so important.

Many businesses have already had to apply for a grant, with Ms Evans saying the Welsh Government had “done their best to help businesses hibernate”. Ms Evans said: “This unprecedented financial response has maximised the immediate support we could offer to Welsh public services, businesses and the most vulnerable.

“It is only right that we have been guided by a sense of what is fair when public finances are facing such enormous pressure.

“There are still many challenges ahead and our ability to respond is limited by the rigid financial rules imposed on us by the UK Government.

“I will continue to urge the UK Treasury to fix this problem.”

Plaid Cymru finance spokesman Rhun ap Iorwerth said: “Given the depth of the challenge it is obvious that a return to Tory austerity would hinder rather than help the recovery effort.”