£340m support for Welsh businesses as new coronavirus rules announced
Cymorth £340m ar gyfer busnesau Cymru wrth i’r rheolau coronafeirws newydd gael eu cyhoeddi
A set of new targeted restrictions in the hospitality and leisure sectors, together with a £340m support package, has been announced by First Minister Mark Drakeford.
The new measures are being introduced as cases of coronavirus accelerate in Wales once again, eroding the gains achieved during the recent firebreak period.
From Friday, pubs, bars, restaurants and cafes will have to close by 6pm and will not be allowed to serve alcohol. After 6pm they will only be able to provide takeaway services.
Indoor entertainment and visitor attractions must also close.
First Minister Mark Drakeford, said:
“Unfortunately, the virus is moving incredibly quickly across Wales and is eroding the gains we made during the firebreak period. We now need to take further steps together as a nation to protect people’s health and slow the spread of coronavirus.
“This virus – and this pandemic – continues to be full of unpleasant surprises. It thrives on our normal human behaviour and all those places and opportunities where we come together.
“It underlines why we need to take further, targeted action now. We will focus these changes on places where we meet and where coronavirus thrives, drawing on recent evidence from the UK SAGE group of experts about what interventions have had the biggest impact on the virus.”
The Welsh Government is making a further £340m available through the Economic Resilience Fund to support businesses affected by the new changes to the regulations. It will include a specific fund to support hospitality and tourism businesses.
The new Welsh Government support is split into two funds: a £160m Restrictions Business Fund and a £180m sector-specific Economic Resilience Fund grant scheme.
The Restrictions Business Fund will enable eligible businesses in the hospitality, tourism and leisure sectors which pay non-domestic rates (NDR) to access grants of up to £5,000.
It is estimated around 60,000 businesses, with a rateable value of under £150,000 will receive this support.
Businesses not on the NDR system, will be able to continue to apply to local authorities for the Lockdown Discretionary Grant of up to £2,000.
In addition, hospitality, tourism and leisure businesses will be able to access a sector specific Economic Resilience Fund grant scheme.
Small and medium sized businesses meeting the criteria could receive up to £100k. Larger Welsh-based businesses could receive up to a maximum of £150k.
This part of the package is expected to support up to 8,000 businesses in these sectors and a further 2,000 in the related supply chains.
More information about the funding and how it can be accessed will be published on the Business Wales website in the coming days.
Economy Minister Ken Skates said:
“These are incredibly difficult days for businesses and these decisions have not been taken lightly.
“We expect today’s £340m announcement to support tens of thousands of businesses and help protect many more jobs and livelihoods. It must also be remembered that UK Government support is also available to businesses.
“We will continue to do everything we can to support our firms and our people through these challenging times.”
Notes to editors
From 6pm on Friday, the current national measures in place in Wales will be amended to introduce the targeted new restrictions in the hospitality sector and for indoor attractions.
- Pubs, bars, restaurants and cafes will have to close by 6pm and will not be allowed to serve alcohol. After 6pm they will only be able to provide takeaway services.
- Indoor entertainment venues must close. These include cinemas, bingo halls, bowling alleys, soft play centres, casinos, skating rinks and amusement arcades.
- Indoor visitor attractions must close. These include museums, galleries and heritage sites will also have to close. Outdoor visitor attractions will remain open.
The rest of the national measures will remain the same – there will be no changes to household bubbles, how many people can meet in public indoor or outdoor places or restrictions on other businesses.
As the month-long English lockdown comes to an end this week, Ministers are reviewing the current travel restrictions in place to make sure they the right for people living and working in Wales. A further announcement will be made later this week.
The restrictions will be reviewed by 17 December.
Economic support
Under the Restrictions Business Fund:
- All businesses in the retail, tourism and hospitality sectors that are in receipt of Small Business rate relief (SBRR) and have a rateable value of £12,000 or less being eligible for a £3,000 payment if they are forced to close or materially impacted with greater than 40% reduction in turnover as a result of the restrictions.
- All leisure and hospitality businesses with a rateable value of between £12,001 and £51,000 being eligible for a £5,000 payment if they are forced to close. Retail and supply chain business in the same rateable value bracket will also be eligible for this support if they have greater than 40% reduction in turnover during the restriction period.
- Hospitality and leisure venues with a rateable value between £51,001 and £150,000 being eligible for a £5,000 payment if they are forced to close or are materially impacted as a result of the restrictions.
Local authorities will distribute the Restrictions Business Fund support to firms in the leisure, hospitality and tourism sectors registered for NDR-related assistance during the firebreak. Eligible businesses which did not register for the support at the time, will be able to so via their local authority’s website shortly.
Under the sector-specific Economic Resilience Fund grant scheme:
- Businesses in the hospitality, tourism and leisure sectors materially impacted with greater than 60% impact on turnover as a result of the restrictions can claim support. This would be open to companies that are VAT registered, limited companies with turnover above £50,000 and employing staff via PAYE.
- Small and medium sized businesses meeting the criteria could receive £1,500 per employee, up to a maximum of 10 staff. Thereafter cost per job and operating costs will be taken into account which could enable SMEs to access up to £100k grant.
- Larger Welsh-based business can claim £500 payment per employee for to a maximum of £150k.