THE 2021 Budget “paves the way for brighter days ahead” in Wales after a year of struggle.

Jim Jones, the chief executive of North Wales Tourism, said the UK Government had been listening to the needs of the tourism sector, which would benefit from the furlough scheme extension and freeze on VAT until September.

Chancellor Rishi Sunak said the Welsh Government will be given an extra £740 million in funding for devolved areas through the Barnett formula.

He also told the Commons the Budget included commitments to funding city and growth deals in North Wales, Mid Wales and Swansea Bay, as well as cash for the Holyhead hydrogen hub and the Global Centre of Rail Excellence in Neath Port Talbot.

Mr Jones said: “After a year of restrictions culminating in huge losses, it was imperative that the UK Government provided more support to the tourism and hospitality sector - especially as we try to recover to some form of normality and the challenging months ahead.

“It’s clear that UK Government have been listening to the wishes of the sector and I was pleased to learn of the furlough extension and VAT staying at 5% until September, together with further financial support via grants.

“We now wait in anticipation to see what further support will be forthcoming from the Welsh Government which hopefully will include the continuation of the business rates holiday.”

Welsh Secretary Simon Hart described the plan as “a fantastic Budget for Wales” which would help protect jobs and livelihoods through the pandemic.

He said: “The continuation of furlough, self-employed and business support, the Universal Credit uplift, the hospitality VAT cut and the fuel duty freeze will provide vital certainty of people and businesses in Wales in the months ahead, while the announcements of the Centre for Rail Excellence, hydrogen hub and investment in growth deals will bring thousands of high-skilled jobs, signalling Wales’s place as a centre for innovation and the industries of the future.

“As we have seen over the past year, the strength of the United Kingdom has never been more important to Wales and we will continue to provide vaccines, Covid testing and armed forces support which are key to lifting restrictions and reopening the Welsh economy.

“Today’s Budget delivers for every part of Wales and paves the way for brighter times ahead.”

In a statement, Mr Sunak said: “Throughout the pandemic, the UK Government has stepped in to support millions of lives and livelihoods across Wales.

“The Budget bolsters that support – ensuring our Plan for Jobs continues through the next stage our recovery.

“We are also investing millions in Welsh towns and cities, key infrastructure and green industries that will be vital to long-lasting economic growth.”

The UK Government said it was committing £4.8 million for the Holyhead hydrogen hub, a green demonstration project which will create 30 jobs in Anglesey.

It was also committing up to £30 million for the construction of the Global Centre for Rail Excellence in Neath Port Talbot, which will create 120 jobs at the new rail and infrastructure testing facility.

It said it would continue to work with the Welsh Government to establish at least one freeport in Wales as part of the aim “to make Wales a premier destination for trade and investment”.