Welsh crisis fund now launched to aid staff and firms
THE Welsh Government has launched an economic crisis fund to meet the needs of workers and businesses who have fallen through the gaps of the response to the coronavirus crisis so far.
UK Chancellor Rishi Sunak has already announced huge Government interventions – with a business rates holiday in the retail, leisure and hospitality sectors and a wage subsidy for workers sent home because of the crisis.
But pressure is mounting for additional support for the self-employed and businesses in other under-pressure sectors.
Now the Welsh Government has started a fund to support them – initially backed by raising £100m by taking rates relief off large retail sites like Tesco and Asda supermarkets and major hotels like Celtic Manor in Newport.
Precise details on who can obtain support and how to get help will be announced in the coming days.
A joint statement from Rebecca Evans, Minister for Finance and Trefnydd, and Ken Skates, Minister for Economy, Transport and North Wales, said: “There remains an urgent need for government intervention in a number of areas, including, for example, providing support for the self-employed and helping businesses meet the cost of NonDomestic Rates in other sectors of the economy, as well as rent of commercial premises.
“To address emerging gaps in the UK Government’s interventions, the Welsh Government will put in place a cross-sector, cross-government fund to respond to the specific needs of businesses, during what will be a managed period of enterprise hibernation.
“This will help meet fixed costs which are no longer covered by earned income and which are not adequately addressed by the UK Government interventions.
“It will also assist self-employed citizens, should UK Government not step in with direct assistance this week.
“This will be designed specifically to include social enterprises and charitable organisations which have until now relied in whole or part on revenues from trading.
“We intend to announce precise details as soon as we possibly can over the coming days and clearly, the exact coverage will depend on what further measures the Chancellor of the Exchequer announces.
“Ensuring adequate resources for such a fund will undoubtedly require difficult choices.
“As a result, the Welsh Government has decided to make one adjustment to the Non-Domestic Rates (NDR) Relief for the hospitality, retail and leisure sector announced last week – to not extend the 100% relief to the small proportion of properties with a rateable value of £500,000 and above.
“This will affect fewer than 200 properties across Wales but will release more than £100m to kick-start the economic crisis fund.”