(Title Image: via Senedd TV [taken pre-pandemic])
- Businesses will be expected to commit some of their own resources to receive Development Bank grants.
- Particular emphasis on the hospitality sector, businesses in local lockdown areas and extra support to employ the under-25s.
- Retailers call for the public to spread out Christmas shopping instead of waiting until the last minute.
An additional £140million has been made available to Welsh businesses affected by the coronavirus pandemic as part of a third phase of the economic resilience fund.
Minister for Economy & Transport, Ken Skates (Lab, Clwyd South), said 13,000 businesses have received help through the economic resilience fund to date, helping to secure 100,000 jobs. This support is on top of that provided by the UK Government.
An eligibility checker for companies will go live next week.
The biggest change is that to receive business development grants from the Development Bank (Banc), businesses will now be expected to commit a certain proportion of their own funds based on their size – ranging from 10% for microbusinesses (employing under 10 people) to 50% for large businesses (employing 250+).
While broadly welcoming the new package – particularly help for local lockdown businesses – Shadow Economy Minister, Russell George MS (Con, Montgomery), thought Wales should follow England in providing emergency funding for businesses forced to close in local lockdown areas.
Also, he received correspondence from businesses stating they effectively had to be unionised – which “is not always suitable for some businesses” – before receiving funding. The Minister clarified that companies have to sign the economic contract – which doesn’t have a strict requirement for union recognition but is developed with union involvement.
Helen Mary Jones MS (Plaid, Mid & West Wales) stressed the need to remember those who’ve fallen through gaps in support – particularly freelancers and the self-employed. She warned that many businesses may not have enough of their own money to meet the new requirement of match-funding if insurers have passed them over.
Dawn Bowden MS (Lab, Merthyr Tydfil & Rhymney) argued for an easing of travel restrictions for tourism businesses which either predominantly operate outdoors or in very large internal spaces.
The Minister argued that exceptions can’t be made because businesses in all sectors would likely be able to make strong arguments for being exempt.
In response to a question on the Christmas period from Suzy Davies MS (Con, South Wales West), he added that the advice from retailers is to buy now or spread out shopping rather than wait until Christmas.