|The latest phase of the Welsh Government’s Economic Resilience Fund has benefited from the release of a further £100million from ministers within 72 hours of launch, due to a massive demand.|
|More than 6,000 grant applications from small and medium sized businesses and social enterprises were received within 24 hours of the launch on Friday – an unprecedented response, revealing the scale of the challenges facing Welsh businesses.|
The Fund aims to complement and fill the gaps left by UK Government schemes such as the Job Retention Scheme, with grants of up to £10,000 for micro-enterprises and up to £100,000 for SMEs and a light touch appraisal system designed to get money to businesses with the minimum of delay – as well as a new loan fund administered by the Development Bank of Wales.
Less than three weeks since the First Minister announced the intention to create the Fund, the Welsh Government has released a further £100 million, taking the grant fund to £300 million. This will supplement this latest phase of support, providing non-repayable grants to microbusinesses, SMEs and those large businesses of critical, social or economic importance to Wales.The Fund has been warmly received by trade union and business organisations, with the Institute of Directors calling it ‘very welcome news for business owners and managers who are desperate for all the help they can get at this difficult time’. The South and Mid Wales Chambers of Commerce has called ‘the rapid response to date’ of the Welsh Government in supporting the economy of Wales ‘impressive’. The Wales TUC welcomed ‘additional funding to address the gaps’.Minister for Economy, Transport and North Wales Ken Skates said: “We knew that even with the help offered by initiative such as the Job Retention Scheme, there was a massive need for quick access to grant funding if Welsh businesses were to survive this unprecedented economic shock. Whilst in order to make the scheme quick and simple we needed to take tough decisions over eligibility – like requiring businesses to be registered for VAT as a way of having to check on their trading history – it is clear from the level of response received that the Economic Resilience Fund is plugging a gap in UK Government support and providing much needed financial reassurance to many businesses at this challenging time. We will continue to review support and consider how we can develop it over the coming days.“The rate of applications has been massive and unprecedented. This is the second time in a matter of weeks that access to Welsh Government funds aimed at easing cash flow pressures for Welsh business have quickly reached capacity, and we have responded with pace to release a further £100m into this phase of the fund.“In these difficult and demanding economic times we have worked hard to free up resources to create such a large Fund despite the huge demands on our budget, and to strike a balance between supporting as many enterprises as possible and making a meaningful contribution to each one’s survival, as well as asking each recipient to sign up to the principles of the economic contract.“Though we applaud much of what the UK Government has done, there is an urgent need to see more of the promised lending guaranteed by the UK Government getting to the front line. The UK Government must continue to support and press the high street banks to be much more responsive to the needs of our businesses at this difficult time.”
Finance Minister Rebecca Evans said: “The Economic Resilience Fund is part of more than £2bn of support that we have made available to help businesses and charities during these incredibly difficult times.“We know that support for business is crucially important but whilst we are doing everything we can in Wales to plug any gaps and provide the best possible financial support to businesses, it is clear there are further steps that the UK Government needs to urgently take.”The Economic Resilience offers financial support to help businesses, charities and social enterprises deal with the coronavirus crisis and will be vital in helping organisations manage cash flow pressures. It is a unique additional funding stream for Wales and was designed to address gaps not currently met by schemes already announced by the UK Government, Welsh Government and Development Bank of Wales.The first stage of the Fund saw the £100 million Development Bank of Wales’ loan scheme fully subscribed in little more than a week. Applications are currently being processed and some businesses have already received funding. It is anticipated that the Development Bank will have processed all applications received within the month.To ensure that money reaches businesses as quickly as possible more than 120 additional Welsh Government and Business Wales staff have been diverted onto processing applications and supporting businesses and organisations in this latest stage of the Fund.
|Contact InformationRobert Owen0300 0252 058Robert.Owen009@gov.wales|
|Notes to editorsIn response to this news:|
Robert Lloyd Griffiths, Director of IOD Wales said: “Today’s announcement by Welsh Government will come as very welcome news for business owners and managers who are desperate for all the help that they can get at this difficult time. It is particularly pleasing that it follows the announcement last week by UK Government that the furlough scheme has been extended as called for by the IoD.”
Heather Myers, CEO, South and Mid Wales Chambers of Commerce said: “The Welsh Government has made significant efforts to support the business and industry of Wales, creating packages of funding that will help get much needed cash into very many businesses.
“We have been in regular contact, explaining the issues that businesses face and the areas of distress where they need urgent help. The Economic Resilience Fund, The Small Business Rates Relief and the range of support from the Development Bank of Wales shows that Welsh Government Ministers have been listening.
“Whilst there are still gaps in funding, which we will continue to identify, the rapid response to date to support the economy of Wales has been impressive.”
Ian Price, CBI Wales Director said: “The CBI welcomes today’s allocation of a further release of £100m from the £500m Economic Resilience Fund, announced by the Welsh Government on the 30th of March. Welsh firms of all sizes and all parts of our nation are facing unprecedented challenge as they respond to the social, economic and health impacts of the coronavirus. Similar to the support provided by the UK Job Retention Scheme, Welsh businesses will be keen to receive these funds in their bank accounts so they can continue to support their staff, secure their business and plan for the post-Covid economy.”
Shavanah Taj, General Secretary of Wales TUC said: “Despite the UK Government’s relief package, we know that some employers are still unable to readily access the funding they need to survive this deepening crisis.
“We welcome this additional funding to address the gaps, as well as Welsh Government’s ongoing commitment that this will be going to employers that are delivering fair work and a safe environment for their workforce.”
University to host industry summit online
SUPPORTING industry’s recovery from the impact of the pandemic is a key priority for the University of Wales Trinity Saint David (UWTSD).
The University has a track record for working with industry through knowledge transfer, research innovation, workforce development and by providing a ready pipeline of skilled students and graduates, in partnership with employers.
In addition, UWTSD’s MADE Cymru initiative was established to support manufacturing industries in Wales to adapt to the challenges of Industry 4.0.
The initiative, funded by the EU via the Welsh Government, aims to support the economic recovery of manufacturers in Wales by offering part and fully funded training to businesses to upskill staff, as well as research and development that improves processes and products to reduce waste and costs.
In addition, UWTSD and MADE Cymru have organised an Industry Summit to be held online between June 8-10 to inform, engage and inspire businesses during this critical period of post-Covid recovery.
Expert speakers will be sharing their insights including James Davies from Industry Wales, Carol Hall, Regional Investment Manager, Development Bank of Wales, Chris Probert, Innovation Specialist, Welsh Government and Geraint Jones, Knowledge Transfer Adviser at KTN.
The line-up also includes Welsh manufacturers who will be sharing their own experiences, including Tim Hawkins, Managing Director, Markes International, Julia Chesney-Roberts, Commercial Manager, Riversimple, Angus Grahame, Founder of Splosh and Jacques Bonfrer, Co-Founder and Team Lead, Bot-Hive.
There will be guest talks from circular economy expert Eoin Bailey and lean author Daryl Powell and an opportunity to find out about the range of services offered by the University.
Graham Howe, Executive Head of the MADE Cymru project at UWTSD says: “This Industry Summit aims to explore issues and challenges facing manufacturing in Wales so that we can work together with employers to find solutions.
“We always start with asking a manufacturer what their biggest problem is today and look at how we can help them with it.
“We aim to unravel potentially confusing challenges like these. Our approach begins by looking at what companies need to increase their productivity and competitiveness.
“We aim to lead the businesses we work with through a journey of continuous improvement – a journey that makes the most of Industry 4.0 technologies and their ever-growing digital capabilities to help solve the specific problems faced by each company.
“All of the feedback we receive from businesses shapes our curriculum – we want to produce employable, digitally literate graduates who can contribute to their workplace from day one”.
Alison Orrells is CEO and Managing Director of Safety Letterbox and has been one of the organisations participating in the MADE Cymru initiative.
She said: “It was important to keep innovating and investing to set us apart and come out stronger. It’s been intense but we had a game plan – now it is all about business future-proofing, being agile, collaborations and being adaptable.”
Covid-19 has affected every part of a business and shifted the focus from production to survival.
UWTSD recently led a round table discussion with Welsh manufacturers about the future of manufacturing in Wales.
That discussion found that their outlook is positive about the future.
Manufacturers accelerated their adoption of new technologies to enhance and optimise production.
With many employees on furlough, managers took the opportunity to rethink and invest in better IT, particularly communications, training and diversified into new product areas. They looked to local colleges and universities to help shift perceptions of jobs in manufacturing and demonstrated the career opportunities and pathways available.
They also loosened their reliance on overseas imports and looked for suppliers in the UK to minimise future risk of disruption.
All sessions of the Industry Summit are free to attend and places can be booked on the UWTSD website: https://uwtsd.ac.uk/made/made-cymru-industry-summit/
Casual and part-time workers: Most vulnerable to job loss
A NEW series of reports that focus on the effects of Coronavirus on employment in Wales was published on Thursday, May 27, by Public Health Wales.
Young people, and those in precarious work have been identified as being especially vulnerable to employment changes caused by the pandemic, with mental wellbeing and struggles to find or keep work cited as major concerns.
Many young people are unaware of the support that is already available and how to access it, suggesting a greater need for organisations to engage with young people on a deeper level, to find solutions to the barriers they face for gaining good, fair employment –critical for people’s good health and wellbeing.
FURLOUGH HAD UNEQUAL IMPACT
Dr Benjamin Gray, Public Health Researcher at Public Health Wales, said: “18-29-year-olds are the age group with the highest proportion placed on furlough (41%) and 2.5 times more likely to have been placed on furlough than the 40-49 years age group and as such risk an uncertain future. Furlough could potentially mask a longer-term impact of Covid-19 on unemployment, and this is a concern, especially amongst this age group.”
Dr Ciarán Humphreys, Consultant in Public Health with the Wider Determinants of Health Unit at Public Health Wales, said: “Young people have told us they have been hit by a multitude of factors that will potentially have long-lasting effects on their employment prospects.
“It’s not just about being in work, though. It is the nature, quality, and long-term prospects of that work – good, fair work, that’s so important for people’s health. We saw this impact play out in the study.
“Some working young people we heard from struggled with the impacts of work changes outside their control on their mental wellbeing, whereas most of those in stable employment generally felt well, supported by their employer, and confident about the future.
“We know that at UK, Wales and local levels there have been important actions taken to mitigate the impact of these employment changes. However, some of these are expected to come to an end.
“A clear message from our work is that it will take a range of approaches to support young people responding to the employment challenges of the pandemic, to improve health.
“Action can be taken at national, regional and local level. Employers, too, have an important role in helping young people into good quality work, and that includes public sector organisations.
“If we are to safeguard future health we will need to work collaboratively and effectively, involving young people.”
The reports are the first in a series of planned employment analysis by the Public Health Wales Population Health programme exploring the impact of Coronavirus on the Welsh labour market and will help inform policy and decision-makers.
Further phases of the research will look at how challenges could be addressed as the economy reopens and recovers, so that those most at risk of longer-term harm from the crisis can secure decent quality future employment, training, and education.
Key findings across the reports were:
• Around a quarter of a million workers were employed in shutdown sectors in Wales (18 per cent of all workers) at the outset of the pandemic with young workers (aged 16-24) much more likely to be employed in shutdown sectors (36 per cent compared to 11 per cent of those aged 35-64).
• Young people faced varied and complex challenges due to the pandemic. In addition to the challenge in gaining, retaining, and partaking in good, fair work, issues raised included the effects of the temporary lockdown, such as disruption of vocational learning and home-schooling, or exacerbation of pre-existing issues such as the nature of employment for young people, Brexit and reported lower uptake of universal credit.
• Those who work in low-paid, insecure work have less protection and rights due to the ‘flexible’ nature of their jobs. Young people are chief among these due to the specific sectoral trends in employment contract types. These employment changes have also translated into significantly different impacts for distinct groups, with those living in deprived areas of Wales appearing to have fared worst.
• There is substantial uncertainty about the future, especially when government schemes such as furlough come to an end as these cushioned the economic pain caused by the pandemic.
• Young people have been disproportionately affected by the pandemic and are likely to feel the effects for some time with concerns over scarring effects on job prospects and the potential for higher tax in the future to pay for the financial support schemes introduced by the Government during the pandemic.
• While interventions are perceived by decision-makers and influencers to be available, apart from the furlough scheme, young people in this study did not, on the whole, appear familiar with them or accessing the support.
• It will be critical to ensure young people are involved in the development of future support.
• Evidence suggests that labour market policies can substantially impact the health of both the employed and unemployed populations in a positive way.
• A range of policies are linked with improved mental and physical health outcomes, as well as reduced health inequalities; however, some, such as benefit sanctions, have been linked to either no health benefit or even harm.
Welsh business confidence highest since 2014
BUSINESS confidence in Wales has grown to its highest level since 2014, a new report from chartered accountancy body ICAEW has found.
The Business Confidence Monitor(BCM) report for Wales found that confidence had climbed to its highest level since the third quarter of 2014.
This was likely due to the successful rollout of coronavirus vaccines, which led Welsh businesses to expect a strong economic recovery with hopes of large increases in domestic sales following falls over the past year.
Businesses reported that domestic sales had fallen slightly, while exports suffered the biggest fall seen since the BCM began in 2004, as global demand fell sharply during the coronavirus crisis and lockdowns reduced companies’ ability to transport their goods abroad. The contractions in sales also led to profit levels falling for many businesses.
A third of Welsh businesses said customer demand was a growing problem, but regulatory requirements were the most widespread concern, cited by over a third of companies. This was likely because of post-Brexit customs controls which affected Welsh exporters who are more reliant on the EU market than in other parts of the UK.
Some 30% of businesses cited transport problems as a growing source of difficulty, compared to 16% the year before.
Employment levels stayed largely the same over the past year. This was helped by the extension of furlough scheme, which should continue to limit job losses, at least temporarily.
Beverley Waters, ICAEW Regional Director for Wales, said:“It’s positive news for the Welsh economy that businesses are feeling more confident for the future, doubtless a reflection of the vaccine rollout and prospects of a strong recovery.
“While challenges remain, Welsh businesses expect domestic sales and exports to increase once again. This is a positive outlook for our economy, which is needed after a difficult year.
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