Coronavirus: 'Wales must match Budget's small business help'

There are fears for the impact on businesses from the coronavirus outbreak

Business bodies have called on the Welsh Government to match UK Budget measures to help firms in England as the country deals with the spread of coronavirus.

Business rates in England will be abolished for retail, leisure and hospitality firms with a rateable value below £51,000.

Business rates are devolved to Wales.

A Welsh Government spokesperson said it would consider how any extra funding could be best targeted.

There are currently 19 confirmed cases of the virus in Wales but it is expected to spread much further.

On Tuesday, Wales' First Minister Mark Drakeford urged Chancellor Rishi Sunak to provide Wales with the necessary funding to cope as he warned "enormous strain" could be placed on public services.

Mr Sunak also announced that firms in England who already had full small business rate relief would be able to access £3,000 grant funding.

• Budget 2020: The economy must be vaccinated

• Extra £360m for Welsh services promised in Budget

• Virus aid 'should reflect Wales' older population'

Rishi Sunak announced measures aimed at alleviating the economic fallout of dealing with the Covid 19 virus

Ben Francis, FSB Wales policy chair, called on the Welsh Government to "urgently respond to this funding and confirm that they will implement the same level of support in Wales".

"Abolishing business rates for hospitality businesses for the rest of the year will create a cushion for those businesses who may be vulnerable early on to the effects of the emergence of coronavirus," he said.

"Similarly, a £3,000 cash grant to the smallest businesses, who are already in receipt of 100% business rates relief, will be a welcome measure to help navigate the uncertain times that lie ahead.

Mr Francis also welcomed the chancellor's move to refund small and medium-sized businesses for statutory sick pay for employees affected by coronavirus, which causes the disease Covid-19.

CBI Wales Director Ian Price said they would also like to see the Welsh Government consider matching the business rates relief offered to English firms that are significantly impacted by the virus.

Gretchen Betts says some businesses could be severely affected by coronavirus

Gretchen Betts, managing director of Magenta Financial Planning in Bridgend, said she was hopeful the Welsh Government would pledge to follow suit and match the reductions in rates.

"This will be vital for Welsh businesses in retail, hospitality and leisure sectors, where they could be severely affected by coronavirus this year.

"It's pleasing to see the measures around refunding eligible statutory sick pay costs and potential funding for SMEs (small and medium-sized enterprises) who may find themselves in trouble."

Also in Bridgend, Mike Mitchell, director of United Worldwide Logistics, said he would like to see business rate relief rolled out to larger businesses.

"All in all I have to say a very positive budget for a very worrying time and with the continued freeze on fuel duties there is not much more we could ask for," he added.

A Welsh Government spokesman said: "We await further details from the UK government regarding the schemes announced and will consider how any additional consequential funding can be best targeted to support our communities and businesses as part of our spending priorities."

What's the overall picture for the Welsh economy and businesses?

There were two distinct messages at the same time from the chancellor - the government is acting to protect household incomes from the economic effects of coronavirus and helping to keep the economy moving, and also looking to the future, promising to spend vast amounts of money to try to "level up " poorer parts of the UK, like Wales.

Significantly for a Conservative chancellor, he said he would increase borrowing to pay for projects, mainly in England.

For the many who are self-employed or who work within the more unpredictable gig economy, there is the promise it will be quicker and easier for them to access benefits. Employment support allowance will be available from day one, not after a week as now.

Critics will say that this does not make up for years of austerity along with pay and benefits freezes.

The budget did not introduce funding for big physical infrastructure projects in Wales. The £12m for full fibre connections in south Wales and £4m for Pembrokeshire will please those areas - but frustrate people elsewhere.

Looking ahead, a £22bn pot to fund research and development, along with £400m of new money for universities, will be welcome. The challenge for organisations in Wales is to successfully bid for that to build a higher-skilled, higher-paid economy.

With 20% of the working population expected to be off at any one time during the coronavirus outbreak, Welsh businesses will welcome the UK government's announcement that it will refund the cost of statutory sick pay (SSP) for 14 days.

That's for all companies that employ fewer than 250 workers.

Wales is particularly dependent on small and medium-sized businesses and this pledge will cover 99.4% of firms here, employing 62% of the private sector workforce.

Business rates are devolved so the Welsh Government will come under pressure to provide similar support here especially as the multiplier - the way the tax is worked out - is already higher in Wales than in England.

There are loans and tax breaks for businesses to make investments in research and development, buildings and environmental measures.

Taxes will likely rise in future for the energy intensive industries including steel unless they move away from the use of gas.

The steel industry constantly complains that high energy costs make production in Wales uncompetitive when compared with some other European countries.

The potential increase in fuel duty didn't happen as it is frozen for another year, a move likely to be welcomed by businesses, particularly in rural areas.