WALES' finance minister Rebecca Evans has hit back at Debenhams, claiming they are trying to blame the Welsh Government for the company's difficult financial position following concerns around the future of the chain's Newport branch.

Talks are currently ongoing between the national retailer and the Welsh Government - with the future of the store in Newport's Friars Walk and several others across Wales, hanging in the balance.

Earlier this week, Debenhams chairman Mark Gifford accused the Welsh Government of 'playing politics with people's jobs' as talks reached a stalemate.

Ms Evans has strongly rejected this in an open letter to the Argus.

She said: "I am deeply concerned to read media statements made by the company, seeking to blame the Welsh Government for the long-term financial crisis the business faces."

And she adds: "I have engaged with the company in good faith to explore what further support we can provide and have referred it to the Economic Resilience Fund, which helps business of all sizes respond to the COVID 19 crisis.

"That support is based on a ‘something for something’ approach.

"It is only right we expect firm commitments about jobs in return for public money in these circumstances."

The Welsh Government has placed a cap on Non-Domestic Rates relief during the coronavirus pandemic, meaning businesses with a rateable value of more than £500,000 are not eligible for relief.

The Newport store has a rateable value of £510,000.

No such cap is in place over the border in England.

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In her letter, Ms Evans wrote: "We do not want to see major retailers close. I know how important Debenhams stores are to our town centres.

"However, this is a business facing its third insolvency process in 12 months. It is simply not credible to suggest our decisions about rate relief will cause Debenhams to fail.

"We are already providing more than £1 million in rates relief support to Debenhams across Wales.

"The Welsh Government has created a £1.7 billion package to fund the most generous business support offer anywhere in the UK."

There is strong feeling from many in Newport that the loss of Debenhams could spell disaster for the city centre as a whole.

However, Ms Evans said that the Welsh Government was making town and city centres a priority.

"The Welsh Government is committed to a Town Centre First approach to support our towns and cities," she said.

"We are working with businesses and local authorities to design the best possible long-term support for our retailers and to place town centres at the hearts of our communities."

The full open letter from finance minister Rebecca Evans:

I note yesterday’s article regarding the future of Debenhams and the impact on jobs in Newport. I am deeply concerned to read media statements made by the company, seeking to blame the Welsh Government for the long-term financial crisis the business faces.

The Welsh Government has created a £1.7 billion package to fund the most generous business support offer anywhere in the UK. Our goal is to help businesses survive the impact of COVID-19 and protect as many Welsh jobs as possible.

We do not want to see major retailers close. I know how important Debenhams stores are to our town centres. However, this is a business facing its third insolvency process in 12 months. It is simply not credible to suggest our decisions about rate relief will cause Debenhams to fail. We are already providing more than £1 million in rates relief support to Debenhams across Wales.

I have engaged with the company in good faith to explore what further support we can provide and have referred it to the Economic Resilience Fund, which helps business of all sizes respond to the Covid-19 crisis.

That support is based on a ‘something for something’ approach. It is only right we expect firm commitments about jobs in return for public money in these circumstances.

We are in the midst of a national public health and economic crisis; as a Welsh Government, with our extremely limited resources, we have to make incredibly difficult decisions every single day about where our support is most effectively targeted. This ranges from how to pay for field hospitals and vital PPE for our NHS staff to how to support Welsh businesses, which have nowhere else to turn.

The Welsh Government is committed to a Town Centre First approach to support our towns and cities.

We are working with businesses and local authorities to design the best possible long-term support for our retailers and to place town centres at the hearts of our communities.