10. Economy, Infrastructure and Skills Committee Debate on the effects of COVID-19 on Wales's Economy, Infrastructure and Skills

Part of the debate – in the Senedd at 5:02 pm on 1 July 2020.

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Photo of Ken Skates Ken Skates Labour 5:02, 1 July 2020

Thank you, Dirprwy Lywydd, and can I begin by thanking the committee Chair, Russell George, and its members for its work producing both incredibly valuable reports? And I'd also like to thank those who were able to provide evidence via video link in what has become, of course, the new norm for holding meetings at present. Of course, ordinarily, the Welsh Government would have formally responded to committee reports ahead of debates, but I recognise that the will to debate these important reports ahead of recess means that the Government will not be able to formally respond until next month, as requested. 

There are 42 recommendations in total across both reports, so, unfortunately, I'll be unable to cover every one of them but, Deputy Presiding Officer, what I would say is that I think it's valuable reading both reports alongside the recently published UK Treasury Committee report on the UK Government's support for businesses and the economy, because there is some parallel concern across all three reports. 

Dirprwy Lywydd, and committee members, what I can say regarding the two reports that have been produced by the EIS committee is that we have acted swiftly and decisively to help protect Welsh businesses from the impact of coronavirus. Our £1.7 billion business support package—it's the equivalent of 2.6 per cent of our gross value added—complements other UK schemes, and it means that companies in Wales have access to the most generous offer of help anywhere in the United Kingdom, as Huw Irranca-Davies identified.

We deliberately designed our Wales-only £500 million economic resilience fund to plug the gaps left by the UK Government's package of business support, and this is because we want to support as many businesses, as many jobs, as we can possibly do so during this incredibly challenging time. 

We also know that our approach is working. Data from a recent Office for National Statistics survey indicates that, of all of the UK nations, Wales has by far—by far—the highest percentage of businesses to have applied for and accessed coronavirus-related business grants. The survey found that the figure for businesses accessing support in Wales is 32 per cent of the 260,000 businesses that we have. That contrasts with just 14 per cent of businesses accessing direct Government support in England, 21 per cent in Scotland and 24 per cent in Northern Ireland.

So, as a result of the £0.5 billion economic resilience fund, including, of course, Development Bank of Wales support, we've been able to help close to 8,000 businesses with more than £200 million of support that simply wouldn't have been available elsewhere, and that has led to tens of thousands of jobs being saved. Now, on Monday, we reopened the next phase of the economic resilience fund, providing more opportunities for microbusinesses, small and medium-sized enterprises and large businesses to apply for funding. We'll also be extending our support to non-VAT-registered companies and businesses that started after March 2019.