£120 million funding package for businesses affected by new Boxing Day Covid restrictions in Wales
It will include supply chain businesses and Travel Agents
Last updated 23rd Dec 2021
More emergency funding for Welsh businesses hit by changes to the Coronavirus restrictions in Wales has been announced.
A hundred and 20 million will be available for retail, hospitality, leisure and tourism business and their supply chains affected by the move to alert level two on Boxing Day.
Yesterday we were told that Welsh hospitality had to move to the rule of 6 and social distancing.
Off the back of that news, Christmas pantomimes were cancelled from Boxing Day at Swansea's Grand Theatre and the New Theatre in Cardiff, while the festive Waterfront attractions in Swansea and Cardiff announced their closure.
Businesses need to register online
Under the latest package, retail, hospitality, leisure and tourism business who pay Non Domestic Rates will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value.
Businesses will need to re-register their details online with their local authority in order to receive their payments. Registration will open via local authority websites from the week beginning 10th of January
Extended support
The Welsh Government says they have extended the support to non-essential retail so that smaller shops, and Travel Agents will be supported.
Hospitality and leisure businesses and their supply chains will be able to apply for top up funding from a new Economic Resilience Fund (ERF).
Eligible businesses can apply for grants of between £2,500k - £25,000, with grants dependant on their size and number of employees.
The application window for ERF will open in week commencing 17th January 2022 with payments starting to reach businesses within days.
Welcomed by business groups
Wales’ largest business organisation FSB Wales (Federation of Small Businesses) has welcomed the package. Speaking following the announcement, Ben Francis, FSB Wales Policy Chair said:
“The past few weeks have been deeply concerning for so many businesses across Wales and this funding will go some way to provide a cushion for those businesses facing very uncertain times. FSB has been in daily contact with Welsh Government Ministers and officials in the past two weeks outlining these concerns and making the case for funding support for businesses.
"We’re pleased that the Minister for Economy has listened to our case for this funding, and particularly the inclusion of support for retail, supply chain businesses as well as sole traders which have similarly been affected. This support comes alongside other welcome support from the Chancellor of the Exchequer, Rishi Sunak including the return of the Covid Statutory Sick Pay Rebate, for which FSB has been lately campaigning.
"There is undoubtedly uncertainty about the road ahead through this latest crisis and into what will hopefully be brighter times of economic recovery. It may well be that yet more support will be required if we are to minimise the impact of Omicron on the Welsh economy and our communities.
"Welsh Government must help businesses plot a way through this crisis and when circumstances allow, government will need to articulate how and when restrictions will be lifted to allow businesses the best opportunity to return to full trading capacity."
Discretionary fund for sole traders
Local Authorities will also administer a Discretionary fund for business and sole traders who do not pay rates.
That fund will provide £500 to sole trader and freelancers and £2,000 to employing businesses in impacted sectors.
Economy Minister, Vaughan Gething, said:
“We fully understand the continued challenges faced by businesses, however we are facing a very serious situation in Wales. A wave of infections caused by the new, fast-moving and very-infectious omicron variant is headed our way, this means taking early action to try and control its spread – and limit the impact on Welsh businesses.
“Since the start of the pandemic, we’ve provided over £2.2bn of support to businesses throughout Wales to help them manage their way through difficult circumstances.
“We will continue to monitor the impact of the spread of Omicron on businesses in Wales, and will consider whether additional emergency funding is needed in the new year.”
The website Business.Wales will be updated with details.