Welsh government pledges £340m support amid new rules

The Welsh government has announced it will provide £340m to support businesses in the country, amid a fresh wave of new rules affecting the way hospitality businesses can operate from Friday 4 December.

The new measures, aimed to reduce the rising Covid-19 cases in country, demand that restaurants, cafés, bars and pubs close to dine-in customers by 6pm and they will not be allowed to serve alcohol. 

After 6pm, these businesses can continue to provide a takeaway service.

"Unfortunately, the virus is moving incredibly quickly across Wales and is eroding the gains we made during the firebreak period," comments Wales' first minister Mark Drayford. "We now need to take further steps together as a nation to protect people’s health and slow the spread of coronavirus.

"This virus – and this pandemic – continues to be full of unpleasant surprises. It thrives on our normal human behaviour and all those places and opportunities where we come together.

"It underlines why we need to take further, targeted action now. We will focus these changes on places where we meet and where coronavirus thrives, drawing on recent evidence from the UK SAGE group of experts about what interventions have had the biggest impact on the virus."

An additional £340m has been available through the Economic Resilience Fund to support businesses affected by the new changes to the regulations, with a specific fund for hospitality operators. 

The new Welsh Government support is split into two funds: a £160m Restrictions Business Fund and a £180m sector-specific Economic Resilience Fund grant scheme.

The Restrictions Business Fund will enable eligible businesses in the hospitality, tourism and leisure sectors which pay non-domestic rates (NDR) to access grants of up to £5,000.

It is estimated around 60,000 businesses, with a rateable value of under £150,000 will receive this support.  

Businesses not on the NDR system, will be able to continue to apply to local authorities for the Lockdown Discretionary Grant of up to £2,000.

In addition, hospitality, tourism and leisure businesses will be able to access a sector specific Economic Resilience Fund grant scheme.

Small and medium sized businesses meeting the criteria could receive up to £100,000. Larger Welsh-based businesses could receive up to a maximum of £150,000.

This part of the package is expected to support up to 8,000 businesses in these sectors and a further 2,000 in the related supply chains.

More information about the funding and how it can be accessed will be published on the Business Wales website in the coming days.

“We feel isolated and are unjustly bearing the brunt of government actions"

UKHospitality Cymru has welcomed the swift response by the Welsh government to provide immediate substantial support for businesses that are being forced to endure devastating new restrictions and closures over the holiday period.

"Let’s be clear: at this time of year, when businesses can trade up to 25% of annual turnover - and above - the new restrictions are a massive blow to hospitality in Wales as well as our loyal customers and workforce as we head towards Christmas and the New Year.

“We feel isolated and are unjustly bearing the brunt of government actions when retail and other areas are allowed to trade relatively unhindered.

“These businesses have been devastated all year, struggled to stay afloat in the face of diminished consumer confidence and stifling measures and, even with the financial support,  this could be a hurdle too many.

“We can take some comfort from the swift response to our direct appeals for vital support by the financial support being offered by the Welsh government, though. Such severe restrictions necessitated a similarly large package of support to offset the measures and ensure that businesses stay alive and jobs remain open. There are still losers in this package and some of our bigger hotels could still be in inadequately assisted.

“We pushed the Welsh government very hard on this and they have listened. If they survive, these are businesses that can spearhead the recovery of the Welsh economy next year and beyond.

“We are still waiting for the full information on the restrictions and package and there is still a long way to do before the sector is anywhere near to being out of the woods, but the quick and pragmatic approach to support being shown by the Welsh government will give more businesses a better chance of making it through.”