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PRIVACY
Economic Development

Call for reactive business fund to support small businesses in the event of local lockdowns

Federation of Small Businesses is calling for the º£½ÇÊÓÆµ and Welsh Governments to work together on potential local lockdowns

Wales could be in for really tough economic times(Image: Matthew Horwood)

One of Wales’ biggest business organisation is calling for cross-government working on potential future localised lockdowns.

The Federation of Small Businesses has identified believes there is a need for a Rapid Reaction Business Fund to support smaller businesses in the event of local lockdowns

Today, (3rd August) FSB Wales has written to Simon Hart MP, Secretary of State for Wales and Ken Skates MS, Welsh Government Minister for Economy and Transport, to call for º£½ÇÊÓÆµ and Welsh Governments to work together on potential local lockdowns.

This is because as it becomes increasingly apparent that Coronavirus will be a feature of daily life for some time to come, attention must naturally turn to how localised, community outbreaks will be managed.

In England, restrictions have been reimplemented in Leicester and most recently in Greater Manchester to deal with local-level outbreaks. While the Welsh Government has not yet had to deal with a community-level outbreak, attention must be turned to contingency planning for how the business sector can be supported through any such local shutdown, and how lessons can be learned from local issues elsewhere.

Lockdown measures are being relaxed further in Wales(Image: Matthew Horwood)
(Image: WalesOnline/Rob Browne)

This is particularly important given the significant disruption that the country-wide lockdown had on Wales’ business community, many of firms are only just beginning to recover from this and cannot yet withstand another lockdown without external support.

With the Job Retention Scheme beginning to wind down and expected to end completely in October, firms are once again liable for their full running costs. This leaves them more exposed to significant financial issues in the event that local lockdown restrictions were to prevent them from trading once again.

Today, FSB Wales has called for a Rapid Reaction Business Fund which would be fully worked up by Welsh and º£½ÇÊÓÆµ Government, and would be ready to deploy quickly and efficiently in the event of another lockdown situation. This would be targeted at the particular geographical focus of the lockdown and support businesses through a short-term disruption to their ability to operate.