Support for People and Businesses in Wales: Covid-19

Debate between Stephen Kinnock and Fay Jones

Wednesday 21st October 2020 Westminster Hall

[Fay Jones (Brecon and Radnorshire) (Con)]

It is a pleasure to see you in the Chair, Sir Edward. I congratulate the hon. Member for Islwyn (Chris Evans) on securing this important debate. The last time he and I were in Westminster Hall, he reminded me of a day we spent in Blackwood, walking to raise funds for Velindre Cancer Care, which at that time was treating the late Steffan Lewis, a great man and a Plaid Cymru Member of the Senedd. We have sadly lost Steffan now, but every time I see the hon. Gentleman, I am reminded of that uplifting day and the collegiate, cross-party support that came with it, which I hope will seep into this debate.

Coronavirus has devastated businesses across Wales. I am incredibly proud and thankful for the level of support that both Governments have made available. Schemes such as the coronavirus business interruption loan scheme and the bounce back loan have directly supported businesses of all sizes right across Wales. Some 11,000 jobs in Brecon and Radnorshire have been protected through the UK Government’s furlough scheme. These schemes have been a lifeline to businesses that have lost the ability to trade for the better half of a year, with no clear end in sight.

Every sector in Brecon and Radnorshire has lost out, but I want to speak in particular for the tourism and hospitality sector. Many of the most beautiful parts of Wales can be found in my constituency. In a normal year, they would draw hundreds of thousands of tourists from all corners of the United Kingdom and, indeed, from around the world. For example, the small, independent book shops in Hay-on-Wye attract thousands of visitors each year, with the Hay festival being one of the world’s foremost literary events—yet another example of a loss to our community during this pandemic.

Following the easing of restrictions in Powys, pubs, restaurants and hotels were slowly coming back to life. Supported by the unique eat out to help out scheme, demand picked up in August. Many restaurant and café owners have told me how much they valued this scheme, which resulted in more than 77,000 meals being enjoyed in the constituency. The argument that it contributed to increasing rates of the virus in September is simply not borne out in Brecon and Radnorshire, where coronavirus rates have stayed mercifully low.

The First Minister’s decision on Monday to put the entire country into lockdown once again is, to use the words of the hon. Member for Islwyn, a hammer blow for those businesses that were just starting to recover. The decision penalises everyone across Wales, irrespective of the number of virus cases in a certain area. To make the problem worse, businesses have no foresight as to what comes next. The businesses in my constituency, which have relied on customers being able to travel up from the south Wales valleys, have no idea whether those people might be allowed back after the lockdown is lifted.

Like the hon. Gentleman, since Monday I have been flooded with emails from businesses and workers who are now deeply uncertain about their future. I was saddened to read on Facebook this morning that Aroma, a café in Llandrindod Wells, has announced that it cannot survive lockdown 2 and will be closing its doors permanently.

[Stephen Kinnock (Aberavon) (Lab)]

The hon. Lady is making an excellent speech. Is there not more certainty around the idea of a firebreak, or a circuit breaker, because it is time-limited, with a specific deadline of 9 November, whereas a very open-ended tier-based system leaves people in a vacuum for an indefinite period of time? Surely the Welsh approach provides far more certainty than the UK Government’s approach.

[Fay Jones]

The hon. Gentleman makes a good point, but we do not know what will happen after 9 November, as I will address in my speech.

It is clear to me that businesses do not want to be kept on life support through Government grants and loans. They want to be open and busy, serving customers and playing an important role in our communities. Throughout coronavirus, the tourism and hospitality sectors in Brecon and Radnorshire have reacted admirably and have done everything they can to stay open, while ensuring that their customers are safe.

I was pleased to visit Cantref activity centre in Brecon in the summer, which has worked incredibly hard to implement social-distancing measures and limit capacity, as have Dan yr Ogof caves, a 60-year-old underground caving attraction in Abercrave. They have all now been told by the Welsh Government that that work was for nothing and that they are to lose their half-term revenue—the only glimmer of hope in an otherwise dreadful year.

The lockdown is being imposed, and we will all have to comply, businesses included. I welcome that the Welsh Government have made £300 million available, but I hope that that can be targeted at businesses in the tourism and hospitality sectors, which are now facing their third winter of 2020. I will play my part by urging the Chancellor and the Treasury to maintain the 5% VAT rate, but I urge the Welsh Government to commit to scrapping business rates for tourism and hospitality businesses for another year. Above all, in answer to the point made by the hon. Member for Aberavon (Stephen Kinnock), the Welsh Government need to explain what happens next. It is vital that we avoid an endless cycle of rolling lockdowns, as trailed by the hon. Member for Leeds West (Rachel Reeves) on Sunday morning.

Before I conclude, I want to highlight the plight of the events sector, which is another important employer in my constituency. The Royal Welsh show is the largest agricultural show in Europe. Each year, it welcomes a quarter of a million visitors to Llanelwedd, just outside Builth Wells. It creates £45 million for the UK economy and, more than that, it is a rich seam in our cultural fabric. For many, it is the highlight of the year—an annual holiday and a chance to catch up with friends right across the agricultural sector. Just before the Royal Welsh show was cancelled for 2020, the Department for Digital, Culture, Media and Sport provided the Welsh Government with £59 million to support cultural activities in Wales hit by the pandemic. I find it curious that only £53 million of that money has been made available so far. The Royal Welsh show is one of the biggest cultural events in Wales. It is on a par with the Urdd eisteddfod, which received £3.1 million in support from the Welsh Government. The Royal Welsh show has received next to nothing in comparison. I implore the Welsh Government to consider the rural economy and find some extra funding for the show, which faces an uncertain future.

Support for businesses comes in many forms, not just lifeline funding. Businesses need to know what comes next. We in Wales know that half-term, Halloween and bonfire night are all cancelled. Valuable chances to recover are gone. Where do we go from here? How do we fight the virus on an economic and a public health front after 9 November? The Welsh Government need to come forward with a plan urgently.