£120m support package for businesses affected by Covid restrictions

Details of a £120m support package for businesses impacted by new Covid restrictions have been announced by the Welsh Government.

On Wednesday, December 22, First Minister Mark Drakeford confirmed Wales would return to Alert Level Two restrictions from Boxing Day.

The £120m package will be made available to businesses in the retail, hospitality, leisure and tourism sectors affected by the restrictions, as well as their supply chains.

Businesses in these sectors which pay Non Domestic Rates will be entitled to a payment of £2,000, £4,000 or £6,000, depending on their rateable value.

To be able to claim the payment, businesses will need to re-register their details online through their local authority, from the week beginning January 10.

Businesses will also be able to apply for top up funding from a new Economic Resilience Fund, with eligible businesses able to apply for grants of between £2,500 and £25,000. The application window for this fund will open on the week beginning January 17.

Meanwhile, a discretionary fund will be administered by local authorities across Wales for businesses and sole traders who don’t pay rates. The fund will be able to provide £500 to sole traders and freelancers, with £2,000 available for businesses in affected sectors.

The Welsh Government confirmed an ‘eligibility checker’ will be launched on the Business Wales website in the New Year to help businesses work out how much they’re entitled to claim.

The funding replaces the £35m Business Support Fund announced by the Welsh Government in November.

Wales’ Economy Minister, Vaughan Gething, described the Omicron spread as a “very serious situation” and said early action was needed to control its spread.

“We will continue to monitor the impact of the spread of Omicron on businesses in Wales, and will consider whether additional emergency funding is needed in the New Year,” he said.

“Since the start of the pandemic, we’ve provided over £2.2bn of support to businesses throughout Wales to help them manage their way through difficult circumstances.”