IoD Wales National Director, Robert Lloyd Griffiths responds to latest GDP figures calling for a cut in the cost of employment.
Responding to latest official figures showing GDP fell by 20.4% in the second quarter of 2020, Robert Lloyd Griffiths, National Director for the Institute of Directors in Wales said:
“These dire figures highlight the painful reality households and businesses across the country are facing. The battle now is to prevent longer-term scarring from this plunge in economic activity.
"Job losses have been mounting, and may only increase as we reach the end of the furlough scheme. The pile of debt businesses have had to take on could also cause a lasting hangover. With flimsy balance sheets, directors will find it difficult to push ahead with spending plans. Meanwhile, sales and operations will remain limited by the need for social distancing and ongoing uncertainty around the virus.
"The Chancellor must respond now with measures to support jobs by cutting the cost of employment, for instance by reducing employers' National Insurance Contributions. By the Autumn, it might be too late to have greatest effect. The Treasury should also explore options for restructuring the CBILS business loans, while targeted grants from Welsh Government and the Development Bank of Wales to help SMEs adjust to the new normal will hopefully bolster our struggling economy here in Wales.”