The Shadow Business Secretary – Russell George AM – has said he welcomes the Welsh and UK Governments working together to support business, but wants to see further support for business from the Welsh Government through its Economic Resilience Fund (ERF)
The next phase of the ERF includes a total of £200 million, and the ERF in total amounts to £500m. Its aim is to support businesses and charities in Wales to help them manage cash-flow pressures during the Covid-19 (Coronavirus) pandemic.
However, Mr George said:
“The idea of the ERF is that it should fill gaps left by other schemes, and while there are aspects of it that can be supported, on inspection, it’s left many small business owners and self-employed people in the same position they were in before.”
He gave examples of those who will not meet eligibility criteria, or for other reasons will not benefit from the ERF. These include:
· Businesses that are not VAT registered
· People who have recently become self-employed, and therefore unable to produce the required accounts
· Business owners where their business rates are included in their rents
Mr George said:
“There are likely to be many businesspeople who had the same hope of being able to welcome this as I had; small business owners who are struggling, and who are worried about the continuing effect of the lockdown.
“The Welsh Government must bring forward further support in the next phase of this scheme to plug key gaps of support.
“The small business sector is the backbone of the Welsh economy, and needs the full support of Government."