The Economic Resilience Fund

Part of 3. Topical Questions – in the Senedd at 3:30 pm on 4 November 2020.

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Photo of Ken Skates Ken Skates Labour 3:30, 4 November 2020

Yes. Thank you, Deputy Presiding Officer. Can I thank Russell George for his questions, and say that I am sorry for any misunderstanding of the purpose of the development grant fund? We attempted to make as clear as we possibly could on the Business Wales website the purpose of that fund and the eligibility criteria and what was required in order to make an application. Unfortunately, in spite of that, it appears that, perhaps through desperation, a significant number of businesses nonetheless made applications that did not meet the criteria, that were not supported by any satisfactory documentary evidence of need for developments. And so, as a consequence, the fund was overwhelmed and paused. But we will scrutinise and interrogate each and every application on the basis of ensuring that, through a qualitative approach, we support those businesses with the best ideas and the best proposals. And as I've already said to Helen Mary Jones, I'm hoping to make a further statement in the very near future regarding the appraisals of the current applications and the next steps.

The £1 billion that Russell George referred to really I think is a matter for the finance Minister to address. But what I can say to Members is that the finance Minister has kindly agreed to put aside, in preparation for quarter 1 of 2021, an additional £300 million. And of course we are awaiting clarity on any further consequentials from the UK Government as a result of recent announcements. And as the First Minister has already said on a number of occasions, any consequentials relating directly to business support will be provided as business support when they come through to Wales. And I think it's important again for Members to remember that we are operating in a crisis, and yet, during the course of this crisis, throughout this crisis, we've been able to support businesses with the most generous package of support anywhere in the UK, utilising the ERF as a fund and a system to plug holes and to provide safety nets that otherwise would not exist.

And on the very important point that Russell George raised lastly, those businesses that have been unsuccessful in getting discretionary grants because they've had NDR-related grants, well, the discretionary grants that we've made available through local government are designed to support those businesses that do not occupy properties—businesses that operate from shared premises and so forth. And that's to ensure that we capture as many businesses, microbusinesses in particular, as we possibly can do.