Part of 1. Questions to the Minister for Economy – in the Senedd at 1:55 pm on 7 July 2021.
Of course, the Institute for Fiscal Studies has also warned that an extra cost being assumed by struggling businesses could result in tens of thousands of workers facing redundancies. To ensure the possible outcome outlined by the IFS of a reduction and ending of furlough does not occur in Wales, has the Welsh Government undertaken any contingency planning to enable them to continue supporting Welsh workers and businesses through furlough if support from Westminster is cut off?
And further to this, of course, in Wales, despite the number of people on furlough reducing steadily over the past few months, as of last week, there are still 88,000 jobs in Wales still furloughed. Of course, you yourself have warned that furlough should not be withdrawn before the Welsh economy is ready, and at Westminster, my colleague Ben Lake has accused the UK Treasury of rigidly sticking to dates with regard to financial support even though uncertainty continues to loom large over the economy. With a continued risk of economic instability as we emerge from the pandemic, it is crucial that the Treasury keeps maximum flexibility to its approach if it is to truly support people and businesses out of this crisis.
The TUC has also warned Ministers not to pull the plug on the UK's economic recovery by cutting off support for workers and businesses too soon. Should the public health situation unexpectedly deteriorate as we approach autumn and winter, is the Welsh Government prepared to step up to the mark and support Welsh workers and businesses? And with the Chancellor's decisions weaving in with the Prime Minister's announcement this week of England easing all restrictions from 19 July, will the Welsh Government be modelling not only how this will impact the public health situation in Wales but the economic environment as well? Does the Minister also agree that if Westminster gets this wrong, with both the economic and health situation deteriorating, this could end up costing us in the long run?