Covid: Welsh minister's business loan claim nonsense, says Treasury

Wales' Economy Minister Ken Skates made the claim earlier this week

A claim by Wales' economy minister about the scale of Welsh Government support for businesses has been called "complete nonsense" by the Treasury.

Ken Skates said the Development Bank of Wales made "as many Covid loans to businesses as all the UK government-backed Covid loans offered through high street banks".

That has been disputed by the Treasury.

The Welsh Government acknowledged UK government support had been "extremely valuable".

Businesses received 1,335 loans from the Development Bank of Wales, according to Welsh Government figures, but the Treasury said more than 50,000 received UK government-backed loans.

• Rent arrears loans to tackle lockdown homelessness

• Welsh business support to include self-employed

• Transport for Wales rail to be nationalised

The Treasury said Mr Skates' claim - made at a Welsh Government press conference on Tuesday - was "complete nonsense".

Low-interest loans for businesses in Wales were part of a £1.1bn support package announced in March.

Businesses have been offered loans as part of both the Welsh and UK governments' support packages during the coronavirus pandemic

Asked for further details, the Welsh Government said: "The Development Bank of Wales' Covid-19 Wales Business Loan Scheme was fully subscribed in the first week of April and provided 1,335 loans to businesses across Wales.

"For around the same period of time in April, we estimate the Coronavirus Business Interruption Loan Scheme provided some 850 loans to Welsh businesses.

"The minister was referring to this period of time in his press conference.

"We acknowledge that since then the high street banks have gone on, with the UK government backed schemes, to deliver a range of support to thousands of business across Wales during the pandemic and that this support has been extremely valuable."

The UK government has provided loans through the Coronavirus Business Interruption Loan (CBIL) scheme and the Bounce Back Loan schemes - both of which have been offered through high street banks.

The CBIL opened on 23 March and the Bounce Back Loan scheme started on 4 May.

A spokesman for the Treasury said: "As our latest published statistics show, more than 50,000 businesses in Wales have benefitted from more than £1.6bn in UK government-backed loans to get through the crisis.

"This is just one element of our UK-wide £200bn response which has included paying the wages of millions of furloughed workers and the self-employed, as well as billions more through grants, loans and tax deferrals."