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Birmingham Post
Birmingham Post
Business
Owen Hughes

Plea to reopen Covid fund as Wales' new post-lockdown measures announced

Welsh Government has been asked to urgently reopen a Covid fund as post firebreak measures are announced today.

First Minister Mark Drakeford confirmed shops, pubs and restaurants will reopen after November 9 as well as tourism.

But the lockdown in England and potential ongoing restrictions on hospitality means it won't be business as usual.

Last week Welsh Government's £100m business grants, part of the Economic Resilience Fund (ERF), launched on Wednesday afternoon.

But it closed little more than 24 hours later after receiving 5,500 applications from firms desperate for support.

Many businesses failed to even get an application submitted in time.

Aberconwy MS Janet Finch-Saunders, Chair of the Cross-Party Group on Small Shops, is seeking reassurance that the fund will be reopened.

She said: “I am dismayed that the Welsh Government's ERF Covid business grant fund closed just 24 hours after it launched, with many local business owners detailing system glitches that left them unable to apply. This whole process has only added more anxiety, which is wholly unnecessary and was totally avoidable.  

Janet Finch Saunders, Conservative MS for Aberconwy (BBC LDR service)

“It was not like the Welsh Government could not have foreseen such demand when they forced us into a Wales-wide lockdown, resulting in the wide-spread closure of businesses.

"The Welsh Government needs to re-open the application process and ensure that the funding support meets demand if our nation’s entrepreneurs are to bridge this period."

She added: “As the Chair of the Cross-Party Group on Small Shops, I was incredibly alarmed to learn that, during the third quarter of 2020, the Welsh shop vacancy rate increased to 18.0%, from 15.9% in the second quarter. This is tangible evidence of the impact of the coronavirus pandemic on the retail and small business sectors.

“This vacancy rate stands only to increase as a result of this farcical Welsh Government grant process. Businesses and jobs are at risk, so I urge Ken to get his skates on and reverse this grant scheme closure as a matter of urgency."

A Welsh Government spokesperson said: “We recognise what a difficult time this is for business and the high demand for the latest £100m business development grant element of our Economic Resilience Fund only serves to reinforce this.

“Due to the high volume of applications received  and our commitment to getting funds out as quickly as possible to business, we closed the business development grant element of the fund yesterday.

"We are continuing to explore further options for supporting businesses through the pandemic, including to help them prepare for EU transition, and are working to ensure that businesses who have not yet applied to the fund are able to register an expression of interest on the Business Wales website.

“Businesses can still register for and benefit from the £200 million Lockdown Business Fund element of ERF3 as well as apply to other UK Government led schemes.”

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