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Economic Development

Welsh Government 'working urgently' to back non-VAT registered firms but warns system not yet ready

Economy minister Ken Skates said a 'discretionary bursary fund' was one possibility

Coronavirus: The lockdown restrictions in Wales

Economy minister Ken Skates said Welsh Government is "working urgently" to back non-VAT registered firms in Wales - but says he can't promise immediate help.

While billions of pounds is being delivered to businesses from º£½ÇÊÓÆµ and Welsh governments there remains groups that have slipped through the net.

These include micro firms who are not registered to pay VAT - with concerns over protecting any system from fraud holding up support for this vital part of the Welsh economy.

Mr Skates said a "discretionary bursary fund" was one system now being looked at.

Business Live has been pressing on this issue along with Daily Post columnist Dylan Jones-Evans - highlighting business owners like Michelle Mellor-Edwards who runs Micky’s Professional Catering Business at Prestatyn Golf Club.

Michelle Mellor-Edwards owner of Micky's Professional Catering Business based at Prestatyn Golf Club. Photo by Ian Cooper(Image: Ian Cooper/North Wales Live)

Her firm, like thousands of others, could not apply to the Economic Resilience Fund as they hadn't passed the £85K threshold to pay VAT.

The issue of non-VAT companies was raised today by Business Live with Economy minister Ken Skates.

He said: "Those businesses that are not VAT registered have been a key concern of ours - trying to develop a support package as part of the second wave of the Economic Resilience Fund.