Just days into the new year and Welsh businesses are at breaking point, with countless already buckling under immense pressure.
This dire predicament was hardly something many of us expected as we ushered in the start of 2022, but it’s a sad indictment of reality.
But the latest problems began, ironically, during the festive period, with the only Christmas ‘present’ handed to businesses being restrictive measures starving them of vital revenue.
I dread to think of the number of businesses that will have gone under, since the latest round of restrictions.
The Welsh Government’s reimposition of restrictions on our daily lives have meant park runs are suspended, night clubs closed, as well as the hospitality sector facing limits to the number of people they can accommodate.
But it’s important to note: society acknowledged the need for restrictions, whilst various vaccines were being developed to counter COVID, but there’s a fine line between then and now.
As Prime Minister Boris Johnson has since declared: we have no choice but to live with the virus, and this means we cannot unjustifiably shut down large swathes of our economy, especially when cases are falling and the variant is less severe.
In my role as Member of the Senedd for Monmouth and the Welsh Conservatives’ Shadow Minister for Finance, I’ve visited many businesses, all of whom, and especially those in the hospitality sector, have shared with me their belief that the latest round of restrictions are both wrong and devastating.
Welsh Conservatives believe any imposition of restrictions must be based on the strongest possible data.
But recent data has clearly shown the current restrictions are disproportionate.
However, yesterday a Welsh Government minister declared that the restrictions would be lifted, not now, but in a staggering two weeks’ time.
Our vital businesses need to be able to prosper now, not be financially punished. Sectors of our economy feel as if they’re being forced to walk along a tight rope, with items being thrown at them.
There’s absolutely no reason why the restrictions cannot be lifted from our businesses immediately.
As a result, employers and employees across Wales are looking with envy across the border, where they can clearly see businesses being able to breathe freely, whilst here they’re suffocating under increasing restrictions.
This is financially unsustainable long term.
And, with that said, the Welsh Labour Government had previously pledged financial support, but the packages will not even touch the surface for the colossal losses businesses have suffered during the festive period, as well as now.
It is also nonsensical to think businesses can be hammered into the ground, then suddenly be expected to pick up again to where they once were. As someone who runs his own business (a livestock farm), I know for a fact that that isn’t the way finance works.
Previously the Welsh Government said that the restrictions should not stay in place a minute longer than was necessary. At present, the statistics clearly show that the time has come for the current round of restrictions to be lifted now – not in two weeks - especially given an estimated 1.7 million people across Wales have now had their booster jab.
So, to secure our long-term financial success, what we need to see is stability and more financial support - and the best way to achieve these aims is immediately lifting the current round of restrictions which are tightly wrapped around our businesses, both big and small.
In demonstrating his commitment to Wales, the Chancellor of the Exchequer, Rishi Sunak, has ensured record funding flows from Westminster to Cardiff Bay—an extra £2.5 billion per year on average on top of its annual funding of £15.9 billion—and part of this can be used towards what Welsh Conservatives are calling for. This eye-watering level of funding is proof that Welsh Labour ministers have enough tools at their disposal to get on with responding to the most important task ahead of them.
No stone can be left unturned in ensuring our businesses are able to bounce back financially.
There is too much at stake for our calls not to be answered, and we desperately need Welsh Labour Government Ministers to act quickly.
Time is of the essence.
Peter Fox is the Member of the Senedd for Monmouth and the Welsh Conservative Shadow Minister for Finance. His 13-year term as Leader of Monmouthshire County Council also saw him play an instrumental role in negotiating and securing the UK’s biggest city deal - worth £1.3 billion - for the Cardiff Capital Region, for which he was subsequently awarded an OBE.
