The Welsh Government’s Economic Resilience Fund (ERF) opened for applications yesterday but the row continues over the impact of post-Christmas rules.
A surge in Covid numbers in December due to the Omicron variant badly hit the hospitality and leisure sectors but operators, industry chiefs and opposition politicians say the tightening of the rules from Boxing Day added to the financial pain.
The Welsh Beer and Pub Association estimates pubs lost on average £16,000 each due to restrictions like the rule of six and social distancing - while nightclubs had to close altogether.
Critics of the rules to control cases say England - which didn’t implement extra measures - has also seen cases fall although Welsh Government has pointed to ONS figures showing lower infection rates in Wales compared to over the border.
In Wales the hit to businesses has seen the launch of the £120 million ERF where firms can apply for grants of between £2,500 to £25,000, dependent on their size and number of employees.
Welsh Conservative leader Andrew RT Davies yesterday called on Mark Drakeford to apologise to business owners across the country for the impact of the rules and increase financial support to help them survive.
The current extra restrictions on hospitality and events are due to be lifted by January 28 but Mr Davies also asked for a timetable to remove other measures like vaccine passports and masks.
In response the First Minister said: “The impact on Welsh businesses was caused by coronavirus."
He said businesses were seeing the impact of the Omicron variant “well before any change in the alert level measures” in Wales.
He added: “Welsh citizens were already making choices themselves because they recognised the new risks.”
Mr Drakeford said this was the “root cause” of the difficulties facing businesses and he had “nothing to apologise for”.
He added “We put in measures that ensured lives were saved and businesses could go on trading” and that pubs hit by a £16,000 loss could potentially get that back in Wales through the rates linked and ERF funds that was not available in England.
On the removal of rules over vaccine passes and masks he said they would take advice from the chief medical officer and others ahead of the review on February 10. “As soon as it is safe to, we will make changes to reflect the situation,” he added.
Mr Davies MS, said: “The First Minister’s refusal to apologise for the damage his overzealous restrictions have done to companies across Wales will feel like a massive slap in the face for business owners.”
Meanwhile Aberconwy MS Janet Finch-Saunders highlighted the lack of support for self-catering accommodation properties in the fund and secured a “review” on the criteria from the First Minister.
The ERF fund will now be open for two weeks, with Welsh Government saying payments will start to reach businesses within days.
Economy Minister Vaughan Gething, said: “Following positive engagement with businesses, trades unions and other partners, we recently changed the eligibility criteria for the ERF support.
“The ERF grant is a Wales-only top up payment that currently supports eligible businesses who have seen a 60% drop in their income between December and February compared with the same period two years ago.
“The new criteria means that businesses in these sectors who have seen a 50% reduction in their turnover will now also be able to access the ERF.
“This means more businesses will receive more support from the Welsh Government.”
Apply for Economic Resilience Fund support here:
