Bridgend arcade owner unhappy with 'crazy' grant issue

An amusement arcade owner has been asked to repay a £25,000 coronavirus business grant.

Alex Carpanini, who runs nine adult gaming centres (AGCs) in Wales in seven different local authority areas, was given the money in April.

But last week Bridgend council asked for the money back, saying the business is not eligible.

The council says it is following Welsh Government guidance.

AGCs are arcades with betting machines that have a maximum £2 stake.

Mr Carpanini employs more than 40 staff who have all been furloughed and says he is "hoping we can make it through" the pandemic.

He received an email from Bridgend council on 9 June saying: "I must advise you that the grant of £25,000 paid into your bank account in April 2020 was paid in error, as businesses such as yours do not meet the criteria set by the Welsh Government.

"Please can you arrange for the sum of £25,000 to be paid back to your business rates account by return."

• Town rallies round in lockdown but what's next?

• How our towns can meet social distancing rules

Other than Bridgend, three councils have given him grants, one turned him down, one hasn't responded, and one has paid out for one arcade in its area but not for another.

Mr Carpanini said the variation is "crazy."

"Just be consistent: have clarity across Wales, instead of a postcode lottery depending on which local authority you're under."

Industry representatives are frustrated that decisions on grants for AGCs are varying from council to council.

The trade body says businesses are being treated "completely unfairly"

The trade body Bacta has been lobbying the Welsh Government to give clearer guidance to councils that arcades are eligible for the grant, as is the case in the rest of the UK.

Richard Case from Bacta says the businesses are being treated "completely unfairly."

"Having been told by government to shut we should be receiving support."

The Welsh Government said it was for councils to decide if a business is "broadly similar" to those listed as eligible for the grant.

Its guidance states that "casinos and gambling clubs" are excluded.

Some councils seem to have decided that some amusement arcades fall into that category, while others have not.

Bridgend council said: "National guidance on business support grants has been continually updated throughout the coronavirus pandemic.

"After Welsh Government provided further clarification concerning the conditions under which grants to gambling establishments would be applicable, we checked our system and found that out of 2,321 paid grants totalling more than £28m, two would not have been approved had the clarification regarding these types of premises previously been in place.

"We have written to the businesses concerned to explain this, and have invited them to discuss the matter further with us."

Mr Carpanini says he has not heard from the council since the initial request to repay.

'Cause concern'

The Federation of Small Businesses (FSB) says variation from council to council in how the grants are being awarded is creating uncertainty and a sense of unfairness, and that it's a problem in other sectors too, such as children's play centres.

Ben Cottam from the FSB said a council asking a business to repay was "very concerning."

"I think also this will cause concern for other businesses that funding could be clawed back in their case."

A Welsh Government spokeswoman said: "This scheme and the guidance issued to local authorities does not stipulate the exclusion of amusement arcades.

"Whilst it is not possible to list all the various property uses that exist, local authorities should determine whether particular properties not listed are broadly similar to those listed and to therefore consider them eligible."

A spokesman for the Welsh Local Government Association, which represents councils, said: "Local authorities have made nearly 58,000 awards and distributed just over £700m to support businesses and keep local economies afloat.

"Welsh Government guidance has been closely followed and consistently applied by local authorities."