Renewed call to check for Covid-grants fraud

By Elgan Hearn, Local Democracy Reporter

Calls have been made to ramp up checking of applications for business grants worth up to £25,000 to ensure the right people are receiving help.

As part of a Welsh Government package worth £1.1billion to battle Covid-19, grants worth £25,000 are available for retail, leisure and hospitality businesses occupying properties with a rateable value of between £12,001 and £51,000.

And, a grant of £10,000 is available for small business rates relief (SBRR) with a rateable value of £12,000 or less.

Local authorities administer the grants – but fears have been raised that second home owners who are falsely declaring their homes available to rent, could claim the cash.

Powys County Council Plaid Cymru group leader, Cllr Elwyn Vaughan, has pointed out that other local authorities are tightening the checks to try and close this loophole.

Cllr Vaughan, said: “I have asked for assurance that those holiday homes who have been creative and registered themselves as a business are not now receiving the £10,000 grant or any other grant via Powys as part of the support package for businesses.

In Powys, the Valuation Office Agency says that there are 650 holiday lets that are eligible for help.

Finance portfolio holder. Cllr Aled Davies, said: “The council is applying the Welsh Government’s guidance on the assessment and payment of the £10,000 business grant and this currently includes awarding grants to businesses in the sector that qualify for Small Business Rates Relief.

“If any grants are found to have been paid in error or fraudulently, we can claim it back and will seek to do so.”

The Welsh Government updated the criteria needed for self-catering accommodation to access the grants following concerns politicians across all parts of Wales.

Local authorities are now able to ask businesses applying for grants to show further proof of eligibility.

These are:

·      Produce two years of trading accounts.

·      The self-catering accommodation must have been let for a period of 140 days or more in the financial year 2019-20,

The self-catering accommodation business must be the primary source of income for the owner – at least 50%.