However, UKHospitality Cymru said the rates system is in danger of breaking hospitality businesses
Finance Secretary Mark Drakeford(Image: WalesOnline/Rob Browne)
Pubs, restaurants, cafes, bars and live music venues across Wales will receive a cut to their business rates, the Welsh Government has said, days after the UK Government announced a similar scheme for venues in England. Business rates are a devolved matter, meaning the Welsh Government sets the multiplier and relief schemes that apply in Wales.
Finance Secretary Mark Drakeford says around 4,400 hospitality businesses can get 15% relief on their rates bills in 2026-27, at a cost of £8m. There will be a real terms freeze for two years in England, but not in Wales.
The maximum relief available to any single business is capped at £110,000 across Wales, to prioritise the available support for independent operators, the Welsh Government says.
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Mr Drakeford said: “Pubs, restaurants, cafes, bars, and live music venues are at the heart of communities across Wales. We know they are facing real pressures, from rising costs to changing consumer habits.
“This additional support will help around 4,400 businesses as they adapt to these challenges. We have extended this relief to restaurants and cafes, as well as pubs and live music venues, because in towns and high streets across Wales these businesses operate side by side, often in direct competition. It makes sense to support them equally.
“This builds on more than £1 billion in temporary rates relief we have provided since 2020, alongside our permanent reliefs worth £250 million every year. We will continue to stand behind the hospitality businesses that serve our communities.”
He also said almost half of pubs in Wales already benefit from a relief scheme and over a quarter pay no rates at all.
From April the multiplier used to work out rates bills is being changed and £116m has been put aside to help Welsh businesses adjust to the revaluation. Businesses will have to apply via their local council from April 2026.
The English scheme was also for 15% relief for pubs and music venues and a promise there would be no increases for two years. There had been huge backlash into a planned increase in business rates. There were warnings it would see venues forced to close as the cost would be crippling.
In Wales, UKHospitality Cymru say this financial year the hospitality sector in Wales has paid £83.1m in business rates and had calculated that in 2026-27 there will be a rise of 35% in 2026-27 to £112.5m.
David Chapman, dxecutive director of UKHospitality Cymru, said: “The business rates system is broken and now it’s in danger of breaking hospitality businesses in Wales.
“Welsh hospitality faces an April cliff-edge because of huge rates hikes, totalling a colossal £122 million increase over the next three years.
“It is vital that every penny Welsh Government receives as a result of the new hospitality financial support announced in England – and even more, if possible – is committed to a sector-wide solution to alleviate these damaging increases.
“I would urge it to engage with us on a package of support measures to reduce business rates bills from April, which will help protect employment and local communities. It can also help begin the process of growth that the nation desperately needs.”
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