(Title Image: via Senedd TV)
Preliminary work underway on the fourth phase of economic resilience fund (ERF)
With the third phase of the Welsh Government’s economic resilience fund having closed due to an application surge, Helen Mary Jones MS (Plaid, Mid & West Wales) asked about the future of the programme and whether – once current applications are processed – it may be reopened.
Economy & Transport Minister, Ken Skates (Lab, Clwyd South), didn’t want to raise any expectations that the third phase would be reopened, but all but confirmed that a fourth phase was in development and any underspends and alike would be redirected towards that.
“…. as part of the ERF phase three, a total of 14,000 awards have been made, amounting to more than £43 million. So, speed is of the essence. We’re meeting the demand in terms of speedy payments of emergency cash. But of course, I do recognise that the demand for development grants was overwhelming, which is why we’re learning as fast as we possibly can so that we can shape the next round of support according to what businesses really need.”
– Economy & Transport Minister, Ken Skates
He went on to add that any fourth phase of the ERF would aim to “bridge” the gap between now and whenever businesses are able to run successfully again (hinting this was somewhat dependent on the successful roll-out of a Covid-19 vaccine).
Welsh Government “holding back £1billion worth of unallocated funding”
Pointing out the recently-announced £600million worth of Barnett Formula consequentials for Wales as a result of spending decisions in England related to the pandemic, Shadow Economy Minister, Russell George MS (Con, Montgomery), hoped as much money as possible was going to businesses.
“Cardiff University has estimated more than £1 billion remains unallocated from existing Welsh Government budgets, so I’m hoping that the Welsh Government, in terms of whether it’s yourself or the Finance Minister can confirm if this is the case, why the Welsh Government is not committing this money now to support businesses rather than holding it back.”
– Shadow Economy Minister, Russell George MS
The Minister described the pandemic as a marathon and mentioned the levels of uncertainty over the next Welsh budget. It was “right and responsible” to hold back some funding as a contingency as pretty much all public services will face increased costs for the immediate future.
