The council leaders for South Wales’ three biggest cities have united to petition the Welsh Government to do everything in its powers to boost the economy and protect jobs and livelihoods.
In a letter to First Minister Mark Drakeford the group, which comprised of Councillor Huw Thomas, leader Cardiff Council, Councillor Jane Mudd, leader Newport City Council, and Councillor Rob Stewart Leader City and County of Swansea Council, said they were deeply concerned about the extraordinary economic impact of the pandemic.
The letter, which was also signed by the Chair of the Cardiff Capital Region, said a partnership between national and city governments is vital to repurpose and reinvigorate the city centres.
It also says that economic analysts have suggested that Welsh cities are poised to benefit as businesses seek to adapt to post-pandemic conditions and move away from global cities with high overheads.
They believe in a joined-up Team Wales approach to capture this Ƶ-based investment.
The group says the city economies account for a third of Welsh GVA, businesses, and jobs, employing over 400,000 people.
They also contribute over £325m in business rates to the collective pot to support public services all over Wales.
The letter outlines the concerns for a jobs crisis across the cities.
The majority of the jobs under threat are in sectors such as retail, hospitality, culture, and events that have been the most impacted by the restrictions needed to contain the spread of the virus.
The letter states: In Cardiff, unemployment claimants have risen by 100%, hitting in particular younger workers.
“In Newport, almost 20,000 people are employed in the retail and hospitality sectors and, subsequently, have seen the claimant count rose by almost 3,500.
“In Swansea, almost 1,000 more people aged under 24 are claiming unemployment benefits.”
The letter calls on the Welsh Government to support the projects underway across the cities and ensure they are stabilised and accelerated to contribute significantly to our recovery agenda.
The projects listed are the major regenerations schemes in Central Square and Cardiff Bay, Copr Bay in Swansea, and the Leisure & NKQ projects in Newport.
These projects, they say, will create jobs, immediately, through construction and, for years ahead, through the infrastructure they provide.
“In the meantime, it is vital that we avoid, if at all possible, an accumulation of large empty properties in our city centres,” the letter
adds.
“Key vacant buildings need to be targeted and repurposed to provide confidence for investors, and provide sustainable long-term uses for businesses, workers, residents, and visitors.”
The letter identifies the hospitality sector as needing urgent and enhanced financial support to maintain levels of employment and to overcome the financial distress they have suffered and will continue to experience, as they emerge from the pandemic.
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“We also need to support our hospitality sector, which employs over 30,000 workers, to compete with other Ƶ cities for domestic tourism.
“In addition to the jobs that this sector provides, it is also crucial in supporting vibrant city centres and plays a role in attracting business, as well as tourism, to Wales,” the letter states. The group also calls on the Welsh Government to “introduce much-strengthened Enterprise Zones, including real and substantial fiscal powers focusing on growth-related business rate retention to support investment for renewal and recovery“.
It says the full range of fiscal mechanisms needs to be explored, including Tax Increment Finance schemes, which could increase future business rates income to share across Wales.
The group says the interventions they have suggested are required to help tackle the crisis in our city centres, but also to make sure they emerge from the pandemic “stronger and more resilient cities as part of a stronger and more resilient Wales”.
They conclude the letter by saying the discussions need to happen quickly so that immediate action can be initiated ahead of the Senedd pre-election period.
