Following the publication of recent guidance in relation to the issuing of COVID-19 grants to self-catering businesses, Janet Finch-Saunders, Assembly Member for Aberconwy, has sent an urgent letter to the First Minister asking a number of questions and that self-catering business in one local authority area not be treated more or less favourably than those in another.
The letter follows the ability given to local authorities to stipulate that self-catering business will not be eligible for COIVD-19 grants unless the following criteria are met:
- The self-catering accommodation can produce two years of trading accounts to 31 March 2019;
- The self-catering accommodation has been let for a period of 140 days or more in the financial year 2019-20;
- The self-catering accommodation business is the primary source of income for the owner (minimum threshold is 50%).
Additionally, local authorities have been given discretion as to whether to request and examine trading business accounts, booking lists and self-assessment tax returns submitted to HMRC.
Speaking after issuing her letter, Janet said:
“I have been contacted by a number of individuals in the self-catering sector concerned that they are facing delays in being issued a grant and will face further hurdles not put before others.
“Many have already applied for either the £10,000 or £25,000 grant, but it seems that the Welsh Government is making it harder for some to access the support.
“Whilst I appreciate that there are historic problems in relation to individuals potentially taking advantage of the rules for qualifying second homes for business rates, I do not think that now is the appropriate time to try and tackle the issue.
“Many genuine self-catering businesses have bills to pay, and are relying on receiving the grant funding to help make ends meet.
“For the sake of the genuine majority, I have written to the First Minister asking a number of questions, such as why self-catering accommodation needs to have been commercially let for at least 70 days to qualify for business rates, but potentially 140 days for a grant; why so much discretion seems to have been given to local authorities; and for guidance which ensures that a self-catering business in one local authority area will not be treated more or less favourably than those in another.
“COVID-19 is effecting every corner of the nation, so we should have a fair and efficient grant allocation process across Wales.
“It cannot be right that a self-catering businesses in one local authority may now be made to meet different criteria to those in another area before qualifying for a grant, and that the criteria is tougher than for business rates”.
