Support package announced for Wales’ hospitality sector

A £340m support package has been unveiled for Wales’ leisure, tourism and hospitality sectors after new COVID-19 restrictions were announced.

Through the Economic Resilience Fund, the Welsh Government has made a further £340m available to support businesses affected by the new regulations. Split into two, the fund includes a specific package to support tourism and hospitality companies.

The Restrictions Business Fund

The Restrictions Business Fund will allow eligible businesses in the leisure, tourism and hospitality sectors to access grants of up to £5,000 (if they pay non-domestic rates). Approximately 60,000 businesses are predicted to be able to receive this support, all of which have a rateable value of under £150,000.

Any businesses not on the non-domestic rates system can still apply to local authorities for the Lockdown Discretionary Grant, which offers up to £2,000.

Ian Price, director of CBI Wales, said: "For many, having a successful run-in to Christmas would have been vital to keeping the business going through the winter.

"The support package announced by the First Minister will be very welcome. It is important to remember that there are going to be supply chain businesses that will feel the serious impacts of these new measures and it is vital that they are able to benefit from financial support."

The Economic Resilience Fund

In addition to the Restrictions Business Fund, these sectors will also have access to a specific Economic Resilience Fund grant scheme.

Any small or medium-sized business which meets the criteria could receive up to £100,000, while bigger Welsh-based businesses could receive up to £150,000. This part of the fund is expected to support up to 8,000 hospitality, tourism and leisure businesses as well as 2,000 companies in the related supply chain.

To be eligible for the fund, businesses will have to be limited companies with a turnover above £50,000, VAT registered and employing staff via PAYE.

Ken Skates, the Economy Minister for Wales, said: “We expect today’s £340m announcement to support tens of thousands of businesses and help protect many more jobs and livelihoods. It must also be remembered that UK Government support is also available to businesses.

“We will continue to do everything we can to support our firms and our people through these challenging times.”

Learn more about the available grants here.