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Birmingham Post
Birmingham Post
Business
Owen Hughes

Welsh Government urged to scrap hospitality and retail rateable value cap for Covid grants

Welsh Government has been urged to scrap its rateable value cap on Covid business grants to allow large retailers and hospitality firms access.

Economy Minister Ken Skates has announced a £300m package to support Welsh firms as the nation goes into a 17 day firebreak.

But concerns have been raised that certain firms will miss out on the latest tranche of Economic Resilience Fund cash.

Among the support on offer are payments of up to £5,000 for retail, hospitality and leisure businesses that are required to close and which occupy a property with a rateable value of between £12,001 and £50,000.

But Aberconwy Janet Finch-Saunders MS – has urged the minister to review the decision to enact a rateable value cap of £50,000.

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

She said the decision currently precludes some local hotels from gaining access to necessary funding support. 

In response the Welsh Government said the separate £100m ERF fund would be available for all firms to apply to.

She also raised concerns that additional local lockdown grants of up to £1,000 were "discretionary" and on the first-come, first served basis. The MS says all impacted firms should have access to this money.

Mrs Finch-Saunders said: "I have urged the Welsh Minister for Economy to review the decision to enact a rateable value cap of £50,000.

"Changing this cap would allow my local hospitality businesses to get the support they need to remain afloat and maintain jobs.

"How is it fair that businesses with rateable values of £50,001 or above will be excluded from the £5,000 grant?  I know of hotels here in Llandudno which are set to miss out just because they are on the wrong side of Labour’s red line."

She added: "The Welsh Government’s decision to make a further £1,000 grant discretionary to those areas who were affected by lockdown measures prior to this firebreak announcement is also unacceptable.

" To allow the extra funding for locked-down areas to operate only on a first come first serve basis means it merely degenerates into a race and is an insult to all businesses affected."

A Welsh Government spokesperson said: “The Economic Resilience Fund is supporting a significant number of businesses, charities and social enterprises.

"This week we have announced we are doubling third phase of our ERF to more than £300m. This includes a further £20m towards Business Grants meaning £100m will be available for firms of all sizes.”

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