Commenting on the announcement on funding for businesses made by Ken Skates today, Ben Francis, FSB Wales Policy Chair, said:
“Many small businesses who are suffering the financial impacts of a local lockdown will breathe a sigh of relief that this grant has been announced today.
“For Welsh businesses, 2020 has been a fight for survival, and many firms will have already extinguished their reserves in just surviving the initial lockdown. That’s why FSB Wales has for some time been calling for a Rapid Reaction Business Fund to support those firms that are impacted by local lockdowns. We are pleased that Ken Skates has listened to FSB by introducing the third phase of the Economic Resilience Fund and focusing some funding on those affected by local lockdowns. A local lockdown – particularly where it has come hot on the heels of the national lockdown – is presenting huge challenges for those SMEs that are such a crucial part of our towns and communities and we hope that this grant funding will support those that are struggling most. We continue to be concerned about the impact of travel restrictions on many firms in the run up to Christmas, which would ordinarily mark a busy time of year.
“Whilst this funding is significant, it is important to note that businesses also need timely communication to help them deal with the impact of a local lockdown. FSB has been working hard with Welsh Government and local authorities in South Wales to provide this and to help learn the lessons from earlier lockdowns in Leicester and Aberdeen. We would urge all local authorities in Wales to consider how they can best communicate with businesses who rely on hearing timely advice on what a local lockdown means for them and what they can and cannot do.
“We are also pleased to see that funding will be targeted at helping businesses innovate and adapt for the long-term changes Covid-19 will bring to our economy. It is important that this funding is also matched by training and guidance through Business Wales to help those rethinking their business model or even starting a business for the first time.
“It is true that tourism and hospitality firms have been some of the worst hit in Wales and we are pleased to see that some of the funding will be ringfenced to help those businesses through the winter, although we hope to see more detail on this. This scheme does fall short of FSB Wales’ proposal of a targeted Tourism Hibernation Fund to support those businesses who had, in effect, experienced three consecutive winters and would need government support to weather this. However we hope to see more detail which will demonstrate how the scheme will support those businesses that are vital employers but have missed out on an entire season’s trade.
“Ultimately, as we have seen earlier in the year, the success of this scheme will come down to its accessibility. Firms need to be able to access this funding with minimal hurdles and with an application process that is as straight forward as possible. We are pleased to see that applications will be open before the end of October and would stress the need to get this money into the hands of those that need it as quickly as possible, in order for it to have the biggest possible impact across Wales.”