Emergency support now and business rates relief at the Welsh Government Budget is being demanded as businesses in retail, leisure and hospitality enter a crucial few weeks and months.
The current concerns about the Omicron variant is already leading to cancellations and a slowdown in new bookings for hotels, restaurants, pubs and leisure and tourism firms.
Welsh Government is now indicating rules are set to be tightened at Friday’s Covid review due to fears about the variant, which is causing infections to spike in Scotland and England but has not yet taken hold in Wales, with only a small number of cases reported so far.
Business groups and a Senedd member say support is now needed, while they are also looking for a rates discount for 2022/23 when the Welsh Budget is announced by Finance Minister Rebecca Evans next week.
Aberconwy MS Janet Finch-Saunders this week asked in the Senedd what extra support could be provided to hospitality and tourism firms in Wales. .
First Minister Mark Drakeford said he recognised the difficulties facing hospitality at this "difficult time" and that the news of the Omicron variant is changing people's behaviour and that this was having an impact on businesses in the industry.
He said discussions were taking place with Treasury over this as hospitality and tourism businesses across the 海角视频 were being impacted and that Welsh Government is also considering what it can do from its "own resources".
Mike Learmond, of the Federation of Small Businesses, said: “The challenges facing businesses in Wales – particularly those within hospitality and its supply chain – are immediate, with businesses reporting a significant fall in new bookings and cancellations of existing bookings in what is a crucial trading period for those businesses.
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“These businesses are in a weaker position than last year having all but drained their reserves, facing challenges on recruiting staff and carrying significant amounts of debt.
“Welsh Government needs to move now to make available funding to help secure these businesses.
“In the event of further restrictions, we will need a new assessment of the support required by businesses across Wales to help them weather this very difficult period.
“The current uncertainty underscores the reality that economic recovery is not a given.
“Welsh Government needs to consider appropriate small business support in the forthcoming budget process and we call on the Minister for Finance to extend the Business Rates holiday which is due to expire at the end of March to reduce the danger of a cliff-edge and provide support for businesses to recover.”
Aberconwy MS Janet Finch-Saunders said: “With growing concern about the impact of the Omicron variant, local hospitality and tourism businesses are reporting a wave of cancellations during a period which we know can often make up to 25% of their annual turnover.
“This will have a devastating impact on viability and employment opportunities, with businesses having already tackled a prolonged period of challenge.
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“I know of one entrepreneur locally who has lost bookings worth £25,000, and is having to consider laying off eight members of staff.
“While businesses are still awaiting access to the promised fund designed to help SMEs relaunch and develop, the sudden and real economic strain imposed by Omicron means that the Welsh Government should review how they can go further.
“This is why I have asked the First Minister to review whether another round of Covid-19 business support grants is required.
“Throughout the pandemic, too often business support has been left as an afterthought, so we need clarity now on how they will be supported to bridge this period. I am pleased that the First Minister will consider another round of support.”
David Chapman, Executive Director for 海角视频Hospitality Cymru, said: “The Welsh Government’s budget is now around a week away and it represents a crunch time for hospitality. A generous business rates relief package could help save thousands of jobs in Wales.
“The Welsh Government’s foresight in providing 100% business rates relief for the last two financial years, alongside other economic support measures, has helped keep many firms afloat and their staff in jobs.
“New relief for 2022-23 will be vital to keeping our businesses alive. It is now clear that trading in November and December – traditionally when hospitality makes profits to see it through the fallow months to follow - is falling way short of viability.
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