‘It’s getting to desperation stages’: NI business owners dismay over unspent millions for covid relief

An estimated 7,000 business owners are ineligible for any existing covid-support, despite a pot of more than £200 million of Covid-19 support funding unspent by Stormont departments.

The money risks going back to Westminster’s Treasury purse if it is not spent by the end of the financial year on March 31.

Finance Minister Conor Murphy has urged ministers to make bids for remaining funds as a ‘matter of urgency’, but for those 1,000 people waiting for financial help amid the pandemic, it might be too late.

This has provoked a group, Excluded NI, to table proposals at Stormont suggesting how the underspend could be turned around quickly.

Jordan Allen owns new-start business, Active Adventures NI.

After working in the industry for 12 years, he created his own company just before lockdown started.

His tours include coasteering, kayaking, and stand-up paddle boarding.

He said he has used his personal funds to get up and running, only to be hit by covid-closure last March, then restrictions all summer, and now this January, closure once again.

In an interview with Downtown Radio & Cool FM, Jordan said: “As you can see, I’m literally out in the cold here, but as far as financial aid is concerned, there’s literally nothing available to me.

“We’re not even asking for much.

“If I could just cover the outgoings that I have, I don’t have an expensive lifestyle, it’s just getting to the point where you just want to survive.

“I try my best to keep a cool head, get out for walks, but as time goes on and the money depletes, it is going to be desperation stages.”

Jordan is also concerned about the future: “You have thoughts creep into your mind,” he said.

“Am I even going to make it to the summer? Have these 12 years, and the last 18 months, all been for nothing?”

Jordan said this business was all about getting outside, enjoying nature and getting active.

“It’s really all we do, it’s all we want to do, get people out, have a laugh and obviously for me then, this is my income,” he said.

“It’s a tough enough business as it is. It’s coming into the months now where the weather is getting a bit nicer and we should be able to operate, but it’s just not happening.”

Meanwhile, a car-wash owner revealed he was continuing to work despite the lockdown because no funding was coming his way.

He said he has been ruled out of various schemes for several reasons and simply had to support his family.

“There’s no way to get around it, it has to be done. I have a young family, I still have by bills that need to be paid,” he said, adding that his has send numerous emails and made copious phone-calls to Departments, but to no avail.

“It’s a case of, I’ve been forced to do this, because the government hasn’t come out and said, ‘ok, here’s your income’… So I don’t really know what else I can do,” he said, adding that he is adhering to social distancing while working.

Excluded NI has worked for the rights of those who have not been included in financial aid since the first nationwide shut-down in March 2020.

Initially, over 33,000 were left out of schemes, but the group has successfully lobbied on behalf of newly self-employed people, taxi-drivers and those without rateable premises to create new schemes with suitable criteria.

It means an estimated 7,000 remain excluded from help.

North Down man Brian Dondaldson heads up the group and has this week tabled proposals which Stormont Ministers will consider.

He wants to see a broad scheme that will address all those who are yet to get a slice of funding with one broad scheme, which would churn out the underspend quickly as time is now of the essence.

“Our biggest problem all year was that we were told, there’s not enough money, so to get to January and there’s £430million left out of a £3billion pot, you sort of have to question the people who are making these decisions. How do they know there’s not enough money, and how do they not know there’s another £430million?

“There was always this economy versus health battle that was going on for a while. I’m all for helping people financially but if people needed it for the world of health, I would rather it went there.

“But the Department of Health handed back £90million, so it clearly doesn’t need it – so the money should go towards the economy and the people.”

Finance Minister Conor Murphy said he has requested flexibility from the Treasury to carry over funding into 2021/22.

Northern Ireland has been allocated £3 billion in Covid-19 funding, including £200 million announced just before Christmas.

Mr Murphy told the Assembly on Monday that some £219.2 million of allocations to departments were unspent.

This includes £105.4 million from the Department for the Economy and £90 million from the Department of Health.

Mr Murphy said he has asked ministers to bring forward proposals for further support as a ‘matter of urgency’.

Finance Committee chair Steve Aiken expressed concern at how the remaining funding can be spent before the end of the financial year in March and described the underspend as ‘remarkable’.

Mr Murphy responded saying Scotland and Wales are facing similar issues in terms of dealing with Covid-19 allocations, and together they are pressing the Treasury for flexibility to carry over more funding.

“We have some degree of assurance in terms of the money we received very late, just prior to Christmas, £200 million, but the more that we could carry over into the new financial year, the better for us because we face very significant pressures next year,'' he said.

“I do expect to hear something from them (Treasury) this week.”