Hospitality Businesses

1. Questions to the Minister for Economy, Transport and North Wales – in the Senedd on 3 March 2021.

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Photo of Mark Isherwood Mark Isherwood Conservative

(Translated)

4. How is the Welsh Government helping hospitality businesses in north Wales during the pandemic? OQ56345

Photo of Ken Skates Ken Skates Labour 2:06, 3 March 2021

Our latest restrictions business fund has seen over 22,000 grants paid to north Wales businesses, totalling over £69.5 million. Our hospitality, leisure and tourism sector-specific fund has also provided, to date, £12.7 million to almost 1,500 businesses. Last week, of course, I announced a further £30 million for that fund.

Photo of Mark Isherwood Mark Isherwood Conservative

Each time the Welsh Government has announced financial support to help hospitality businesses survive the pandemic, it has excluded bed-and-breakfast businesses not eligible for small business rate relief because of rules that they have to comply with. They've been excluded from small business grants, unlike their counterparts in England and Scotland, and from each round of the economic resilience fund. On each occasion, I've been contacted by desperate small bed-and-breakfast businesses unable to understand why you have denied support to this vital part of local tourism economies. On each occasion, I've raised this with the Welsh Government, including yourself, to zero effect. How will you therefore respond to the subsequent e-mails received this year from struggling bed-and-breakfast businesses in north Wales stating, 'Looks like, once again, businesses like ours are missing out on the latest Government funding', 'ERF criteria once again disqualifies us' and 'What are we supposed to do for funding now? Can you please contact Welsh Government to find out why businesses like ours are not able to receive grant help despite being required to close down?'?

Photo of Ken Skates Ken Skates Labour 2:08, 3 March 2021

I thank Mark Isherwood for his question and just remind Members again that we're investing more than £2 billion in businesses in Wales. That's £400 million more than we've received in business-related consequentials, and it demonstrates that we are maintaining the most generous and comprehensive packages of support for businesses anywhere in the United Kingdom. But, of course, that package of support is in addition to the UK Government schemes—the self-employment income support scheme and the job retention scheme—which should be applicable to many of those businesses that have approach Mark Isherwood. They should be drawing down funding via that route.

Our role is ensuring that we add value and ensure that operating costs are met for businesses. For those that Mark Isherwood has identified, there is, of course, the discretionary grant fund that's available to local authorities to use in supporting local businesses, and there's also the discretionary assistance fund, which has been increased very substantially during this pandemic, recognising that many individuals are suffering as a result of a loss of income or a loss of employment. That's precisely the sort of fund I'd encourage Mark Isherwood to point those businesses towards.

Photo of Mandy Jones Mandy Jones UKIP 2:09, 3 March 2021

Minister, we've spoken previously in this Chamber about how the hospitality industry is probably one of the most COVID secure. Figures show that people are more likely to contract COVID in a hospital than a pub or a restaurant. Minister, there was a victory for common sense this week when the UK Government lost a case brought by the Manchester hospitality industry in terms of the restrictions put on the industry. How will that judgment affect your approach to the reopening of hospitality in Wales? Thank you.

Photo of Ken Skates Ken Skates Labour 2:10, 3 March 2021

Can I thank Mandy Jones for her question and say that we do have a process in place, a 21-day review process, that enables us to determine how we can safely reopen the economy? We're keen to make sure that hospitality, tourism and leisure can reopen as soon as possible, but they must do so in the safest way possible as well. No matter how small, pretty much every sector has, unfortunately, a contributing factor in transmission rates. Therefore, whilst, yes, they are operating in very much a COVID-safe way, there is still the risk that hospitality, tourism and leisure-related businesses, at this time, if they were to reopen prematurely, could contribute to a significant increase in the number of possible admissions, which in turn would put hospitals under enormous pressure. We're keen to make sure that businesses are able to open in a safe way as soon as they possibly can, and we have that regular routine of 21-day reviews to ensure that we can open up society and the economy in the safest possible way.