Absence of New Restrictions Welcome but Government Funding Firepower May Yet be Needed to Support Hospitality Businesses says FSB

Press Releases 13 Dec 2021

FSB Wales Policy Chair responds to the announcement from the Welsh Government

Responding to the First Minister’s latest statement on the three week review of Coronavirus measures, Ben Francis FSB Wales Policy Chair stated:

While we heard very clearly the First Minister’s concerns about the current environment and the uncertainty posed by the Omicron variant, businesses will be reassured by the decision not to impose new measures at this point.

This is a crucial time for many businesses – particularly those in hospitality and retail. Many of these businesses will usually make a significant proportion of their income for the year in these important festive weeks and to be able to continue to trade will help secure the viability of those businesses and protect jobs and livelihoods. Many of these businesses have not yet regained the losses incurred from last year’s Christmas lockdown and cost pressures and debt add to that burden for so many small business owners. Our appeal therefore is for the Welsh public to support Welsh small businesses in this festive period and beyond – the pounds in our pocket remain crucial in supporting jobs and livelihoods.

However, many of these businesses – particularly in hospitality – are already feeling the effects of concerns raised by the Omicron variant with pubs and restaurants around Wales reporting cancelled bookings. This not only has a significant impact on jobs and businesses in hospitality but among the thousands of businesses in the supply chain which supply that sector. These impacts are no different from the impacts which triggered previous rounds of funding support and so we call on Welsh Government to make ready appropriate funding to support those businesses worst hit. This situation also reinforces the need for Welsh Government to announce the extension of the Business Rates holiday in the forthcoming budget process to ensure onward support into next year.

Businesses and individuals alike have an important part to play in the coming weeks to combat any rise in transmission. We strongly echo and reinforce the messages from the First Minister for people to get their booster vaccinations when the opportunity comes and for employers to make it easy for employees to get their jabs. We all need to adhere to regulations such as mask wearing in enclosed public spaces such as shops and public transport and now, more than ever, we need to show tolerance and respect for those working within shops and other businesses.

While these are times of real uncertainty, Welsh businesses have always and will continue to do all they can to ensure their staff and customers are safe. Today’s announcement will give some confidence to businesses but with the move now to a weekly decision cycle, Welsh Government will need to constantly monitor the experience of businesses and FSB will continue to work with Welsh Government as part of the effort to keep our communities safe.