Firms in the Wales, which saw trading significantly impacted through the introduction of alert level two restrictions as a result of the Omicron variant of Covid, can now apply for a new £120m tranche of financial support from the Welsh Government.
With the country moving back to alert level zero over the next two weeks, the Welsh Government said it was now ready to provide funding for firms in the hospitality, leisure and tourism sectors, as well as their supply chains, impacted by the level two restrictions that came into effect on Boxing Day.
Eligible businesses can apply for grants of between £2,500 to £25,000, with the amount dependent on their size and number of employees.
The application window will be open for two weeks, with payments starting to reach businesses within days. Firms will though have to demonstrate a reduction of at least 50% of revenues over the vital Christmas trading period than the same period before the pandemic.
Last week the Welsh Government reduced the turnover impact threshold from 60%.
However, firms will need to have annual turnovers of £85,000, to be eligible - although the Welsh Government has other pandemic funding steams under its Economic Resilience Fund for smaller firms and sole traders.
Finance Minister Rebecca Evans has also announced a £116m package of rates reliefs for firms impacted by level two restrictions with £15.4m last week also assigned to support firms and organisations impacted in the arts and cultural sectors.
Non-essential retail, hospitality, leisure and tourism businesses in Wales can also receive support from the non domestic rates (NDR) linked grant which is being administered by local authorities. Businesses will be entitled to a payment of £2,000, £4,000 or £6,000 depending on their rateable value.
Local authorities are also administrating a discretionary fund for sole traders, freelancers and taxi drivers and businesses that employ people, but do not pay business rates. Last week this was doubled to £1,000.
Economy Minister Vaughan Gething said:”I am proud that we have worked closely with our social partners. We listened to them and acted to ensure that our support goes as far as possible to met the needs of our economy.
"My priority over the coming months and years will be to move the Welsh economy forward as we steer a path to a stronger recovery. And we are determined to use all in our power to create a stronger, greener and fairer Welsh economy.
“However, we continue to face many economic challenges particularly in the light of leaving the European Union, the absence of any UK Government plan to replace EU funding and reducing inequalities across the UK.”
He reissued a call for the UK Government to publish more details on its permanent replacement for European structural funding, which West Wales and the Valleys were in receipt of and which the Welsh Government directly controlled - through the Shared Prosperity Fund.
However, like its precursor, in the Community Renewal Fund, the funding and investment criteria of the Shared Prosperity will not see a role for the Welsh Government. Local authorities and city regions in Wales, as well businesses and institutions, are expected to be invited to make bid submissions for projects directly to the UK Government.
Mr Gething said: “The people of Wales have not provided a mandate for the UK Government to hive off money and decisions out of Wales. Funding certainty and autonomy will allow us to support the reconstruction of the Welsh economy in a way that is tailored to Wales’ needs. Following several years of engagement we published our plans with partners in how we can make that work.
"The approach the UK Government is taking is a direct threat to that work and it currently leaves Wales with less say and over less money. I do hope that the Secretary of State for Levelling Up, Michael Gove, will discuss those concerns with us in a meaningful way. If the UK Government doesn’t change course then real economy opportunities for our regions, jobs and skills for people, will be lost.”
Asked if the Welsh Government needed to take responsibility over the Rowntree Foundation’s finding that Wales has the highest poverty rate of the four UK nations, Mr Gething agreed poverty levels were “unacceptable”.
But he added: “Direct choices made by UK Government really do matter. The number of children living in poverty has risen in accordance with direct choices made by UK governments about how families are supported.
“Yes we, of course, have a share of the responsibility for all the things that happen in Wales, but you can’t have an honest conversation about this without recognising deliberate choices made by the UK governments, including the recent choice to cut Universal Credit.”
