Shadow Finance Minister and North Wales MS Mark Isherwood has lambasted the Welsh Economy Minister for continually failing to provide small Bed and Breakfast Businesses with the financial support they need to survive the pandemic.
Mr Isherwood has repeatedly raised their plight in the Senedd and called on the Welsh Government to help them, but to no avail.
During yesterday’s meeting of the Welsh Parliament he appealed again to the Economy Minister, Ken Skates MS, to throw them a life line, but instead of offering to provide them with the sums other hospitality businesses are eligible for and they need, he said they could apply for the Discretionary Grant Fund that's available to local authorities to use in supporting local businesses, which is £1,500, and the Discretionary Assistance Fund, which averages just £65.
Speaking in the meeting, Mr Isherwood said:
“Each time the Welsh Government has announced financial support to help hospitality businesses survive the pandemic, it has excluded small Bed and Breakfast Businesses – including from small business grants, unlike their counterparts in England and Scotland, and each round of the Economic Resilience Fund (ERF).
“On each occasion, I have been contacted by desperate small bed and breakfast businesses unable to understand why you have denied support to this vital part of Local Tourism economies.
“On each occasion I have raised this with the Welsh Government, including yourself, to zero effect.
“How will you therefore respond to the subsequent emails received from struggling Bed and Breakfast businesses in North Wales, stating: "looks like once again businesses like ours are missing out on the latest government funding. Their ERF Fund criteria once again disqualifies us” – and “What are we supposed to do for funding now? Can you please contact Welsh Government to find out why businesses like ours are not able to receive grant help, despite being required to close down?".
In his reply, the Minister told Mr Isherwood to point the B&B businesses he referred to in his question “to the discretionary grant fund that's available to local authorities to use in supporting local businesses, and there's also the discretionary assistance fund .“
Commenting after the meeting, Mr Isherwood said:
“The Minister’s response was an absolute insult to these desperate businesses.
“The Local Lockdown Discretionary Grant to assist businesses in the retail, leisure and hospitality sectors is just £1,500, and the Discretionary Assistance Fund is on average £65 for people experiencing financial hardship, it is not to support businesses. In comparison the Business Fund Non-Domestic Rates (NDR) grants are £10,000 and Economic Resilience Fund (ERF) grants are up to £10,000.
“It has been confirmed that pending the outcome of the next review on 12 March, a further £150 million in grants could be made available to firms, including micro businesses, but only through the Welsh Government’s Non Domestic Rates (NDR) scheme if coronavirus restrictions are extended.
“However, businesses operating within our critical small bed and breakfast sector have not been able to access such Welsh Government Business Grants because their criteria states that they must be eligible for small business rates relief (SBRR), but this is impossible for them because the Valuation Office Agency states "The property will be domestic and therefore subject to council tax rather than business rates if: You intend not to provide short stay accommodation for more than six persons at any one time within the coming year and The property is your sole or main residence......".
“These businesses are therefore being penalised for something they have no choice over. Instead of trying to fob them off, it is high time this Economy Minister acted on their desperate pleas for the help they need to survive.”