Covid-19: Call to improve 'disjointed' business support

The past few months have been "immensely challenging" says Rachel Bedgood

Small company owners want to see the Welsh and UK governments "work together" to offer support during the Covid-19 crisis, according to the Federation of Small Businesses (FSB).

One business owner told BBC Wales the help available was "disjointed".

The FSB also warned job losses from small and medium-sized firms (SMEs) - around 60% of private employment - could have a large impact overall.

The UK government said it had provided billions of pounds of support to Wales.

A Welsh Government spokesperson said it agreed with the FSB's comments.

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The UK government's furlough scheme ends on 31 October, and the new Job Support Scheme starts on 1 November, just over half way through the Welsh firebreak lockdown.

Until the end of October the UK government is paying 60% of wages and the employer - including businesses closed down during the lockdown - has to pay 20%.

Only previously furloughed employees can be furloughed again.

The Welsh Government asked the Treasury to bring forward the Job Support Scheme - which will cover 67% of wages for employees of closed businesses - so it applied to the whole firebreak period.

It said it had offered to pay the difference so Welsh businesses would not have to apply to two schemes, but this was declined by the UK government.

The FSB expressed concerns about the impact on companies caused by that gap.

Its policy chair Ben Francis said the situation was creating an administrative burden on SMEs, who employ an estimated 750,000 people in Wales.

"While perhaps [small businesses] aren't necessarily as headline grabbing as when you say a large scale or a chain employer decides to cut jobs, they still are just as important."

Business groups are concerned about the amount of administration businesses face to access support

He said the first minister's announcement of the firebreak lockdown was an "extremely worrying time for business owners in Wales, particularly given the months that preceded the announcement".

The Welsh Government has announced £5m to help workers who fall through the gap in the Treasury's wage support schemes.

'Immensely challenging'

Mountain Ash-based CBS employs 20 people, processing checks on job candidates, particularly in areas where safeguarding is paramount.

Chief executive Rachel Bedgood explained the business was reliant on a buoyant recruitment market, adding the past few months have been "immensely challenging" and "the demand for our services relatively quickly dropped off a cliff".

"The furlough scheme was initially fantastic. The new [Job Support Scheme that] has just come in now is a little bit too late for us."

She said making redundancies was "difficult", having replaced seven posts with five new higher-skilled jobs, but remained positive about her 15-year-old business.

Ms Bedgood echoed the FSB's calls for consistent policies from the Welsh and UK governments during the pandemic.

"It's difficult because it's so disjointed. So whereas we have the Chancellor now coming forward with these new offers... if we're not united in the decision processes that we make, whether it be lockdown, furlough or finance help, then it's just not going to work effectively or certainly going to benefit everyone."

The UK government said it had given the Welsh Government "an additional £4.4bn to cope with the pressures of the pandemic" and "protected more than half a million jobs in Wales through our income support schemes".