Crucial decisions loom for future of our firms
BUSINESSES need more Welsh Government support ahead of reopening. At the end of last week, the First Minister announced that lockdown measures would begin to be cautiously relaxed in Wales.
For business, the implications of this announcement are that Mark Drakeford has stated that retail businesses should use these weeks to prepare to reopen following the next lockdown review which is due on June.
Businesses will certainly see this as the starting gun for beginning to carefully reopen in Wales.
There will now be a clear expectation from firms that they will be able to reopen in a few weeks’ time, providing that the R rate continues to drop.
Many firms will have already begun planning on how they can reopen whilst prioritising the safety of staff and customers.
For some businesses, making adaptations to their premises in order to comply with the two-metre law will come with a significant financial cost, which will be difficult for firms to manage after three months of being unable to earn money.
That’s why FSB Wales has called for Welsh Government to institute a Social Distancing Grant Fund to help firms deal with the financial cost of complying with social distancing once businesses reopen.
In his press statement last Friday, the First Minister also raised questions over the viability of the 2020 tourism season and there will be concerns that tourism in 2020 may not earn firms enough to see them through to next year.
This is something that has been raised by our members a number of times and should be a serious consideration for Welsh Government.
Furthermore, this advances the case for Welsh Government to commit to a Tourism Hibernation Scheme to assist those firms to make the best of this year and survive the winter months from the end of 2020 and into 2021.
For every firm in Wales, the key to reopening will be for business owners to understand what they need to do, and what support is available to help them do it.
That’s why it is critical for Welsh Government to urgently bring forwards guidance.
That guidance needs to be specifically aimed at SMEs in order to help them prepare, alongside a reopening retail campaign.
Welsh Government must proactively message to businesses that they need to prepare, how to do so, and signpost towards the resources that are available.
We know that the First Minister is still coming to decisions on reopening businesses in Wales and we would ask that he remember that businesses are expected to begin contributing to the costs of furloughing staff in August.
There will be a lead-in time for firms to be up and running and earning enough to be able to make furlough contributions.
This must be at the forefront of the decision-making, in order to understand the competing issues that firms will be facing as the seek to reopen in Wales.
This next step is only the beginning of reopening businesses in Wales, but it is crucial that Welsh Government understand just how important these decisions are to the wellbeing and sustainability of firms in the medium to long-term.
FSB Wales will continue to work closely with Welsh Government on behalf of our members to ensure that they are given the best support possible to reopen successfully and safety.