Responding to the UK Government budget, Ben Francis, FSB Wales Policy Chair, said:

“This budget comes at a challenging and unsettling time for business; the Chancellor was faced with a tall ask in terms of announcing a package of measures that can reassure businesses and help them plot a way through the potential disruption of the coming weeks.

“We are pleased to see that the Chancellor has clearly prioritised the needs of small businesses in this budget, which now raises some important questions about the next steps from Welsh Government.

On Coronavirus

“After sustained campaigning by the FSB across the UK, The Chancellor has announced a raft of measures to reassure businesses who are currently facing the threat posed by coronavirus.

“Announcing that there will be a rebate available for the first 14 days of statutory sick pay for small businesses will lead many to breathe a huge sigh of relief. Whilst bringing statutory sick pay forwards to day one was an important move, it did place a very immediate financial challenge for those SMEs that would have to pay it. This measure will ensure that businesses can prioritise guiding their business through this uncertain time whilst having assurance that their employees will be supported.

“Similarly, the hardship fund for those that are vulnerable as a result of coronavirus is an important move. We now need clarity as to how this will be implemented across the UK to ensure that the self-employed in Wales (who cannot claim statutory sick pay) can benefit.

“This, in addition to the coronavirus business interruption loan scheme will help provide short term mitigation for issues that businesses may face in the coming weeks.

“We are pleased to see that the Chancellor has taken advice from FSB on what businesses need in the coming weeks, and we hope that this – alongside moves taken by the Bank of England – will be enough to provide some level of reassurance to businesses in the short term.

On infrastructure

“Ensuring that 95% of the UK is covered by 4G mobile phone coverage will have a big impact on some of the more rural areas of Wales where mobile phone coverage is patchy at best. Businesses rely on decent mobile coverage to keep operating and this is something that our members regularly tell us is holding them back. We hope that this will be implemented quickly and smoothly so that firms can begin to see the benefits.

“South Wales will also benefit from £12 million to improve broadband access, which is a major infrastructure need for SMEs.

“We know that the poor state of Welsh roads is still a major concern for small businesses. It is important that Welsh Government uses the consequential of the roads funding announcement in England to develop infrastructure in Wales.

“Similarly, there is a lack of clarity on opportunities to boost rail infrastructure in Wales. However, there is still the unaddressed issue of the need to devolve responsibility for rail infrastructure to Wales.”

On flooding

“Some businesses in Wales have been devastated by flooding, with businesses facing a long road to recovery.

“UK Government has announced funding for flooding repairs and on resilience measures, and we would urge Welsh Government to build on their work to support flooded businesses in using the Barnett consequential funding from this to implement similar support for Wales.”

On entrepreneurs relief

“FSB has been working hard to ensure that business owners do not miss out on benefitting from Entrepreneurs Relief following the budget. The Chancellor confirmed in his statement that he has decide to reform the system rather than scrap it and we see this as a sensible compromise. Reassuringly, he has also listened to FSB and increased Employment Allowance.

On business rates

“Abolishing business rates for hospitality businesses for the rest of the year will create a cushion for those businesses who may be vulnerable early on to the effects of the emergence of coronavirus. Similarly, a £3000 cash grant to the smallest businesses (who are already in receipt of 100% business rates relief) will be a welcome measure to help navigate the uncertain times that lie ahead.

“We would ask that Welsh Government urgently respond to this funding and confirm that they will implement the same level of support in Wales.

“UK Government has also frozen alcohol duties on wine, beer and cider, as well as offering an increased business rate discount for pubs. Again, these are businesses that could well be hit by a change in consumer habits as a result of coronavirus, and will provide some reassurance.

“We want to see Welsh Government match the ambition of UK Government, and move urgently to support pubs, and those in the hospitality and leisure sectors.

On measures for Wales

“Whilst there is a lot to welcome in this budget, we are disappointed to see that once again UK Government has missed the opportunity to devolve Air Passenger Duty to Wales and therefore has failed to unleash more trading opportunities for Welsh businesses.

“Ultimately, there are a number of positive measures for SMEs to take away from this budget, many of which we are in need of urgent action from Welsh Government. However, clearly in the current uncertainty, there is the demand for Welsh and UK Governments to demonstrate that they are working together to support the needs of smaller businesses to help them through this difficult period.”