The Economic Resilience Fund

Part of 3. Topical Questions – in the Senedd at 3:35 pm on 4 November 2020.

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Photo of Ken Skates Ken Skates Labour 3:35, 4 November 2020

Can I thank Laura Anne Jones for her questions? And, as I've already said, the applications that have come in were huge in volume. Many businesses, unfortunately, applied for support not because they were seeking support for a development, as such, that would secure jobs, that would enhance business prospects, but instead because they were seeking emergency cash. Now, that is not the purpose of this fund, and I don't think it's fair to compare the £150,000 maximum grant available for business development with the emergency support, which albeit was less, because the two funds, or the two parts of the fund, operate for different reasons. One part—the emergency cash part—is intended to support businesses through the firebreak; the other—the business development grants—is intended to support business development for the longer term, and that's vitally important. It's vitally important to distinguish between the purpose of those two parts of the fund. 

Now, in terms of next steps, I've already said to Members I'll be making an announcement in the very near future, once we have appraised the business development grant fund. I'm seeking further advice from officials regarding the next steps, but I think it's absolutely right and proper that we scrutinise those applications that have come in so far, that we learn from them, and that we tailor support for the purpose that it's designed. And the design of the ERF business development grant scheme was to ensure that businesses have a longer term future, that they don't just survive through the firebreak, but that they are able to thrive in the future. And I can point to a number of excellent applications that have come in that demonstrate how some businesses did approach it in the most responsible way with excellent applications, and those businesses that missed out, I'd say, 'Hold on to your documentation; there is £300 million that's going to be made available.' 

Laura Anne Jones asks about when we will be opening up a future fund. Well, quarter 1 of next year is when we intend to be able to support businesses. But we want to make sure that businesses are able to develop the best possible proposals to submit to Welsh Government. And one such proposal—I can't name the business, I'm afraid; it's located in Denbigh—that has been successful already through the development grant fund submitted an excellent application that dealt with the grounds of their property that would enable them to hold more weddings and we were able to support them with an offer of a grant at a 72 per cent intervention rate. I think it's important that I mention the intervention rate, because there is also, unfortunately, the belief that businesses are able to, on every single occasion, secure the maximum amount of grant, but instead we're looking at intervention rates associated with value for money for the taxpayer.