Support for Businesses

1. Questions to the Minister for Finance and Trefnydd – in the Senedd on 21 October 2020.

Alert me about debates like this

Photo of Alun Davies Alun Davies Labour

(Translated)

2. Will the Minister make a statement on support for businesses affected by Welsh Government regulations? OQ55763

Photo of Rebecca Evans Rebecca Evans Labour 1:36, 21 October 2020

In response to the imminent national firebreak, and in line with our commitment to provide further support, we have created an enhanced phase 3 of the Wales-only economic resilience fund, comprising of almost £300 million to support businesses affected by the firebreak and previous local lockdown measures.  

Photo of Alun Davies Alun Davies Labour 1:37, 21 October 2020

Minister, people across Wales, and certainly in my constituency in Blaenau Gwent, are very grateful for the work that the Welsh Government has done to support businesses throughout this time. I know there have been many hundreds of businesses in my own constituency that have been helped and supported by the Welsh Government, and I think the largest package of business support anywhere in the UK is something that's safeguarded many jobs already. But, as has already been pointed out by our colleague Huw Irranca-Davies, some of the smallest businesses particularly do fall through some of the gaps that we have available to us. I'm thinking of taxi drivers, for example, and I'm thinking of people who are working as tradesmen and tradeswomen in order to support them and their families who don't work in a formal corporate structure, if you like. Minister, is it possible to ensure that we do have the funds available to support these people who are the lifeblood of a local economy? 

Photo of Rebecca Evans Rebecca Evans Labour 1:38, 21 October 2020

As part of our £300 million support package, just announced this week, we are ensuring that there is a discretionary element there for local authorities to disseminate to businesses in their area, and, to do so, we're particularly thinking of those businesses that, as Alun Davies says, don't have a premises, so they're not subject to non-domestic rates, for example, and so they miss out on that automatic grant funding that all businesses receiving small business rate relief will receive, but nonetheless they play an important part in our local economies and they're jobs that are often particularly vulnerable. So, I'm really pleased that, with this particular scheme, we've been able to provide that discretionary element of funding, and we're currently working through the final guidance and the mechanism by which we will provide that funding to local authorities, but progress is very fast on that, so we should be able to say more very shortly. 

Photo of Darren Millar Darren Millar Conservative 1:39, 21 October 2020

Minister, businesses in Conwy and Denbighshire are literally on their knees, and there are many jobs that rely on those businesses that are now hanging by a thread. It's been almost three weeks since you put Conwy and Denbighshire, along with other parts of north-east Wales, into local lockdown. That means that they already have a wound that is three weeks deeper economically than the wound that is going to be inflicted on these parts of Wales as a result of the Wales-wide lockdown that will commence on Friday, and yet, as has already been pointed out, there are businesses there that have not received any additional support to reflect that local lockdown period. I've heard you griping about the resources available to the Welsh Government. You've had £4.4 billion's worth of firepower at your disposal, thanks to the support of the UK Government. Why can't you focus some more support on those places that have not yet been eligible for additional resources in north-east Wales, as part of the package that you have unveiled along with the economy Minister this week? And can you assure businesses in Conwy and Denbighshire that they, because of the three weeks additional pain that they've endured, will be at the front of the queue for support?

Photo of Rebecca Evans Rebecca Evans Labour 1:40, 21 October 2020

Well, as Alun Davies has just recognised in his contribution, businesses across Wales have access to the most generous package of business support anywhere in the UK. And I think that that is a reflection of the priority that we've put on supporting businesses through the adjustments that we've made to Welsh Government budgets, alongside the additional consequential funding we've received from the UK Government. And, as a result of the decisions that we've taken, in Conwy alone, 461 micro and SME businesses have been awarded funding, totalling £8 million, and 83 start-up grants have been awarded to businesses in Conwy as well, totalling £207,500. And through the COVID-19 non-domestic business rates grant, a total of 3,311 awards have been processed to Conwy businesses, totalling nearly £40 million. A great deal of this funding wouldn't have been possible had it not been for the prioritisation exercise that we undertook across Government, which released £0.5 billion of additional support in order for us to fund our economic resilience fund. So, Welsh Government is going above and beyond what you're seeing from the UK Government in relation to our support for businesses. 

Photo of Delyth Jewell Delyth Jewell Plaid Cymru 1:41, 21 October 2020

During the UK-wide lockdown earlier in the year it became clear that certain people were not protected by the furlough scheme. One example is Aled from Ystrad Mynach in my region. He set up a business a year ago, which meant he didn't qualify for the self-employment income support scheme, which demanded tax returns for two financial years to access it, and his business also didn't qualify for the Welsh Government's start-up grant scheme. The loss of earnings for his business amount to over £1,000. Now that we're entering a firebreak on Friday, Minister, what assurances can you give me that self-employed people in Aled's situation won't fall through the cracks again? Could I also ask you, Minister, if you'd consider the call from the Wales freelance taskforce, who are representing the interests of freelancers working in the performance industry, to increase the funding available? They say the current scheme is oversubscribed, with many unable to access any support. So, I'd be interested to hear if the Welsh Government intends to help them further. 

Photo of Rebecca Evans Rebecca Evans Labour 1:42, 21 October 2020

Thank you very much for that question, and also for setting out the particular circumstances that Aled finds himself in. Clearly, I don't know the full circumstances behind his situation, but, as I said in response to a previous question, it's really important that, this time, we have added that discretionary element for local authorities, which hasn't been there before. And that's in recognition of the cases that have been brought to us, such as Aled who you've talked about, who've fallen between all of those different offers of support from both Welsh Government and the UK Government. So, we're trying to ensure that there is an additional mechanism now for local authorities to be able to provide support for businesses locally. And, as I say, we're just working through the final detail on that, with a view to providing local authorities with some guidance.

Photo of Caroline Jones Caroline Jones UKIP 1:43, 21 October 2020

Minister, sadly far too many businesses are falling through the cracks in the support offered, and what support there is certainly doesn't make up for the long-term impacts that various lockdowns have had. Businesses don't know if they'll be open or closed from one week to the next, and many microbusinesses get no support at all because they don't have multiple years of accounts. One example: my constituent contacted me concerning her beauty salon's future because she's not eligible for support. She doesn't have full accounts due to maternity leave. Minister, what steps will you take to ensure all businesses in Wales impacted by COVID protection measures do receive financial support, such as my constituent through her maternity leave? Diolch. 

Photo of Rebecca Evans Rebecca Evans Labour 1:44, 21 October 2020

Thank you for providing another example of a business that hasn't been able to access funding thus far. Clearly, I don't want to give the impression that the Welsh Government is going to be able to support every single business in Wales, because the funding we have simply doesn't extend to that. So, I do want to be realistic, but, at the same time, I do want to reflect that we have taken on board and considered well those issues that have been brought forward by yourself and others in terms of those individuals who run businesses that have fallen through the gaps in support thus far. And that's why this discretionary element is so important, and why it's important that we get the advice and guidance for local authorities right in order to enable them to support those locally often very important businesses.