Further details on £200m to support Welsh businesses
Written by Gavin on 29th January 2021
The Welsh Government has revealed further details of the £200m package of support for non-essential retail, hospitality, leisure and tourism businesses that continue to be impacted by the ongoing Covid-19 pandemic.
The latest funding is linked to the non-domestic rates system and will operate as a top up to the Restrictions Business Fund which was put in place in early December.
It brings this latest phase of Welsh Government support to £650m and will help businesses with operational costs through to the end of March.
Businesses with a rateable value of £12,000 or under will be eligible to receive a payment of £3,000.
Businesses with a rateable value between £12,001 and £150,000 will be eligible to receive a payment of £5,000.
The Welsh Government is also extending the £5,000 grant through to businesses with a rateable value of up to £500,000.
Supply chain businesses will be able to apply for support if they have had a reduction in turnover of more than 40%.
The combined package provides eligible businesses with an NDR rate of £12,000 or under with a £6,000 grant towards their operating costs, and an eligible business with an NDR rate of between £12,001 and £150,000 with a £10,000 payment.
This does not include, where eligible, businesses who have accessed the ERF Sector Specific Fund which would see a typical hospitality, leisure and tourism business with 10 employees receive up to an additional £15,000 meaning a £25,000 grant in total for the period.
A further £30m is also being made available through the discretionary fund to provide up to £2,000 grants for businesses not on the non-domestic rates system.
Welsh Government support is in addition to that available from the UK Government.
Local authorities, who have been absolutely vital in getting money to businesses quickly, will again be administering and distributing these payments. Businesses that pay non-domestic rates and have already received a payment since the firebreak in October do not need to take action. However, businesses that have not registered with their local authority, should take action now to ensure they receive the financial support they are entitled to.
Since the beginning of the pandemic, the Welsh Government has ensured that more than £1.7bn of business support has reached the bank accounts of Welsh firms.
This help has been crucial for businesses across Wales throughout the pandemic and has protected tens of thousands of jobs that might otherwise have been lost.
Economy Minister Ken Skates said:
“The coronavirus pandemic continues to have a severe impact on our economy and our businesses, particularly those in the leisure, tourism, hospitality and retail sectors.
“The additional £200m we are making available will provide reassurance to firms across Wales and help them with their operating costs through to the end of March.
“Our support is in addition to that available from the UK Government, including the Job Retention Scheme and the Self Employment Income Support Scheme, and I encourage businesses to explore those options as well.
“I am also calling on the UK Government to provide further certainty to businesses and individuals by assuring that support available through interventions such as the Job Retention Scheme will not be withdrawn before the economy is ready.
“Local Authorities have been crucial throughout the pandemic in supporting our efforts by administering and distributing this funding to firms in their area and I would like to once again thank them for their fantastic work and everything they continue to do to help our businesses when they need it most.”
Local Government Minister Julie James also paid tribute to the efforts of local authority staff:
“I know that staff across Wales have worked incredibly hard to make sure support was available to their local businesses as quickly as possible.
“They have done this while continuing to ensure local services are delivered and while playing an essential role in many other responses to the pandemic from test, trace, protect to supporting those self-isolating.”