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Birmingham Post
Birmingham Post
Business
Owen Hughes

Welsh Government defends business support in Wales - while new funding will 'keep eye' on third wave

Welsh Government has defended its support for businesses in Wales after criticism that the latest money was not matching re-start grants in England.

The new Government in Cardiff Bay has come under fire this week after releasing details on how much businesses would receive in the latest package.

It ranges from £2.500 to £15,000 for hospitality businesses able to open this month - while there is up to £25,000 for those companies having to stay shut.

In England the re-start packages for this sector range from £8,000 to £18,000. Meanwhile non-essential retail is not included in the latest package but firms in England will receive between £2,600 and £6,000.

There have also been concerns that the eligibility criteria in Wales could see some firms miss out and that money will not be paid until well into the summer.

However Welsh Government officials said that funding should be taken on an "accumulative basis" and they say that since December 1 businesses in hospitality in Wales have received more than in England - with a sizeable gap in support for firms with over 10 employees.

They said: "The latest support should not be looked be looked at in isolation."

They added that in retail, support roughly matched that over the border since December and that Wales now has 12 months complete rates relief for retail, leisure and tourism in 2021/22 - while firms in England will start paying partial rates in July.

Wales was though placed in lockdown earlier than many areas over the border - with businesses losing thousands of pounds over the Christmas period.

Outdoor hospitality also opened two weeks later although parts of the tourism and close contact services sectors like hairdressers re-started ahead of England.

Outdoor trading started in April (Ian Cooper/North Wales Live)

Officials said they have used staff numbers, operating costs, and trading impact criteria rather than rateable values to ensure that the latest funding is targeted.

They said under a rateable value linked system some businesses would miss out if they had combined rent/rates arrangements with landlords. It may also mean money could go to businesses that have been open since March, like self catering accommodation.

They said they had "used the intelligence businesses have provided Welsh Government" and designed it to fit around furlough and self employment funding schemes from UK Government.

Welsh Government placed £200m in the funding pot for firms - with around £66m estimated for the latest package.

Going forward they said the remaining funds would be used to help businesses emerge from the pandemic and on development as firms transition on issues like climate change, sustainability and good practice.

This was on an "optimistic" working assumption of a normal trading position from July but was "fluid" to take into account of any restrictions that could remain in place - for example for the night time economy.

This also included "keeping an eye on a potential third wave" and that they were offering "prudent advice" to ministers.

They said: "We are working with the allocation of £200m based on what we know now but there could be a change in scenario if there were a third full lockdown."

Bolton sees spike in infections including the Indian variant (Daily Mirror/Andy Stenning)

They said if a third wave had a UK wide impact they could expect further Barnett consequential support from UK Government.

But they also said they had to take into account the potential for a "sub-regional local lockdown" in a part of Wales - where existing funds may have to be used if there was no consequential from UK Government.

They said they were currently looking at development packages for businesses for the summer but with "half an eye" on the pandemic situation if money was needed in an emergency.

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