Extra Welsh Government support for businesses in Wales has been welcomed but warnings made over a future ‘cliff-edge’ and concerns raised about the closure date to apply for funding.
Economy Minister Vaughan Gething yesterday announced a new fund for July and August for businesses still closed and those suffering a major fall in earnings due to ongoing restrictions.
The FSB were pleased to see clarity on support but are fearful about the prospects in the autumn.
Meanwhile Aberconwy MS Janet Finch-Saunders voiced concerns applications would close on July 23.
She said: “The proposed mid-July closure of this scheme means that a local business which possibly succumbs to an unfortunate Covid-19 outbreak will be forced to close, possibly without financial assistance, as they had forecast through no fault of their own that they would not encounter the 60% reduced turnover through the summer season.
“As the Minister’s statement envisages this will be the final package of emergency support for those business that are able to trade, urgent clarity will need to be provided to businesses over whether they will be supported if they later find themselves in sudden need for assistance.”
Ben Francis, FSB Wales Policy Chair, said: “We are pleased to see clarity from the Economy Minister about the business support that firms can expect to be in place to cover between now and the end of August.
"However, with this funding due to only cover the period up until the end of August, it is clear that we are approaching another cliff edge for thousands of businesses in Wales.
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"As we head into the autumn business support from Welsh Government is uncertain, the furlough scheme comes to an end and businesses will be operating in an uncertain trading landscape.
“This creates another pinch point for thousands of businesses and may force them to make some incredibly difficult decisions as we head into the autumn and beyond.”
Plaid Cymru’s spokesperson for the Economy, Luke Fletcher MS said: “The continued support for Welsh business is to be welcomed, and we share the government’s hope that this will be the final package of support. However, if things take a turn for the worse we hope to see Welsh Government step in.
“There’s also a need for 海角视频 Government to begin to rethink its approach to furlough – if this scheme is to be drawn to a close, then a job retention bonus should be implemented.
“While it’s right to have hope, we’re not out of the woods yet.”
The emergency package of support will cover the operating costs for July and August 2021 of businesses required to remain closed and who remain severely impacted as a result of the continuation of the restrictions.
Eligible businesses in the hospitality, leisure and tourism sectors and their supply chains who continue to be severely impacted by restrictions, such as travel agents, attractions limited by social distancing and venues for school visits, will also be eligible to apply for support.
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Eligible businesses will be entitled to an additional payment of between £1,000 and £25,000, depending on their size, structure and circumstance, to cover the period up to the end of August.
An eligibility checker will open on the Business Wales website on July 5th, which will allow businesses to check their eligibility for the support and the amount of support they are eligible to apply for, which will help them to start preparing their applications.
The fund will open to applications from July 13th to July 23rd.