North Wales MS secures review of ‘ridiculous’ support funding criteria for self-catering businesses

A North Wales MS has secured a commitment from the First Minister to review “ridiculous” Covid support funding eligibility rules for self-catering businesses.

Under the current criteria, self-catering businesses in Wales are not eligible for grant assistance unless their property can accommodate 30 people or more, or is classed as an outdoor education centre.

Aberconwy MS Janet Finch-Saunders said she had been contacted by many business owners in the area who were unable to access funding, despite losing out on thousands of pounds worth of bookings due to Covid restrictions.

She said local authorities have no discretionary powers surrounding this decision.

Raising the issue in the Senedd yesterday, the Conservative MS said: “You’re probably aware that I’m very much in touch with my hospitality businesses here in Aberconwy, and I’m receiving so many heartrending stories.

“They are really struggling as a result of the restrictions that you have put in place.

“I have one business that’s recorded a £60,000 loss; another one, £36,000 lost. This is just since Boxing Day, or, well, when the regulations came in.

“Last week, one of my businesses had to lay off eight members of staff, and, as you can imagine, this is not sustainable.

“The evidence from just Aberconwy proves that your grant support is now too little and much too late. In fact, numerous local businesses are being excluded.

“I’m not sure if you’re aware, First Minister, but a number of self-catering accommodation owners have contacted me in despair because they cannot access any financial support and they’ve lost thousands of pounds-worth of bookings.

“There’s a ridiculous rule that self-catering properties have to cater for 30 people or more.

“So, would you look into this, First Minister, about changing the eligibility rules for self-catering accommodation owners?”

First Minister Mark Drakeford responded: “I am happy, of course, to look at the specific issue of self-catering accommodation.

“I’ll write to the Member when I’ve had a chance to do that.

“Let me just repeat: it is not the Welsh Government that has caused the difficulties for businesses.

“It is the fact that we have been dealing with a wave of coronavirus that has swept across the country, causing thousands and thousands of people to fall ill, not to be available in the workplace, and not to have the confidence to go out taking advantage of what the hospitality industry has on offer.

“That is the root of the problem that businesses have faced, and the Welsh Government has from the beginning put significant sums of money, millions and millions of pounds, on the table.”

Commenting after the Senedd session, Ms Finch-Saunders said: “It is wholly unfair that the Welsh Government have created a ridiculous rule that self-catering properties have to be for 30 people or more.

“This is why I have questioned the First Minister today, urging his administration to act on the avoidable issues raised by changing the eligibility rules for self-catering accommodation owners, as well as consider increasing the funding available to help save the sector and jobs.

“Our self-catering accommodation properties remain an integral and important link in our tourism offer.

“To have their viability undermined by a continuation of these unreasonable rules would be unacceptable.

“I am delighted that the First Minister has committed to review the situation as a direct result of my intervention.”