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Economic Development

Welsh Government getting extra £650m from Treasury to help Covid hit businesses and public services

The º£½ÇÊÓÆµ Government announced the 'eleventh hour' funding which was welcomed by Welsh ministers

A social distancing sign(Image: WalesOnline/Rob Browne)

Welsh Government is getting an additional £650 million to support businesses and public services affected by coronavirus.

The º£½ÇÊÓÆµ Government has provided the money through the Barnett formula due to spending commitments made in England.

It brings the total extra funding allocated to Wales since the start of the pandemic to £5.85 billion.

Welsh Government welcomed the extra money but said this was at the "eleventh hour" and just days before they were announcing final spending plans.

Businesses will now hope this will lead to extra support in the coming weeks while Wales is in lockdown and while restrictions are in place even after lockdown is lifted.

The º£½ÇÊÓÆµ Government said Welsh Government will be able to carry over any of the £650 million not spent this year into the 2021/22 financial year on top of their existing tools to transfer funding between years.

Chief Secretary to the Treasury Steve Barclay said: “We’re committed to giving the Welsh Government the resources and flexibility it needs to tackle coronavirus and today we’re delivering an extra £650m boost.

“We have worked closely with the Welsh Government in advance of this announcement to ensure they have the certainty they need ahead of finalising their budget on 16 February."