Welsh Government Now has Funding and Opportunity for a Bold Economic Plan for Wales

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Commenting on the Summer Statement Ben Francis, FSB Wales Policy Chair, said:

“Small firms will welcome many of the interventions made by the Chancellor today.

“The Job Retention Bonus will provide some security for businesses to bring back furloughed workers and avoid the cliff edge of redundancy that we all feared, providing that UK Government ensures that it is accessible. Paperwork cannot get in the way of vital support getting where it needs to.

“The VAT cut and ‘Eat Out to Help Out’ scheme will be a strong intervention for the hospitality sector, providing that membership of the scheme is accessible to as many businesses in Wales as possible. That said, indoor tourism and hospitality in Wales is currently closed with no prospect of a reopen date. Without action, businesses in Wales will not be able to fully exploit the opportunity offered under this scheme. This must be rectified by Welsh Government in the coming review period, and not in another three weeks’ time. Businesses have been planning to reopen for some time; what they need from Welsh Government is the green light.

“What we’ve seen from UK Government today is a big plan for stimulating the economy, and firms in Wales will want to see Welsh Government matching this.

“Welsh Government will receive significant Barnett consequential funding as a result of today’s announcements and have an opportunity both to implement some of the support that has been announced for England, as well as taking a unique approach to the challenges facing the Welsh economy. We would urge Welsh Government to consider a comprehensive economic response by creating an economic stimulus package for Wales. Such a package would address some of the following:

Introducing grants for SMEs to take on new apprenticeships, similar to the Young Recruits Programme that the Welsh Government instigated after the 2008 economic crisis.

Investment in mobile and broadband infrastructure and exploitation to assist in the development of flexible and remote working as well as create local economic resilience. Many firms have adapted well to working from home, but for many more, access to digital infrastructure will make this incredibly difficult. It is increasingly difficult to justify that a business would face these issues in modern Wales and we must take action to support these firms.

Create a Future of Towns Fund to help towns adopt measures for growing and diversifying towns and town centres. Our towns are going to be a huge part of the economic recovery from coronavirus, it is absolutely vital that they are not left behind in order to ensure that economic recovery is equal across the country.

A decarbonisation investment programme – SMEs are keen to play their part in decarbonisation and Welsh Government should share the UK Government ambition on the recently announced Green Jobs Plan. By investing in a scheme similar to the Green Jobs Plan, Welsh Government can provide a steady stream of work for SMEs in the construction sector in communities across Wales. Such a programme could also help provide 0% interest loans to firms to help decarbonise their premises.

Develop a Rural Challenge Fund to stimulate and fund new measures to diversify and grow our rural economies and ensure a pan-Wales recovery.

“Welsh Government must take the opportunity to be bold in how we approach the economic recovery from coronavirus. What businesses now desperately need is a timetable for reopening that provides guidance and hope to every business in Wales.

“Businesses need to see that Welsh and UK Government are working together seamlessly, to support them at every turn as they seek to navigate reopening after the pandemic.”

Business News Wales