A temporary cut of 15% is being increased and made permanent
Pubs, restaurants, cafés, bars, licensed clubs, hotels, gyms and cinemas in Wales will have their business rates cut by 30%.
Currently, there is a temporary reduction of 15% in place for food and drink venues.
The Welsh Government announcement will apply to:
- food and drink hospitality venues: pubs, restaurants, cafés, bars, food courts, licensed clubs and live music venues
- visitor accommodation: hotels, guest houses and hostels
- leisure venues: cinemas, theatres, libraries, museums and gyms
It will apply to eligible small to medium sized properties which have a rateable value below £51,000.
If it gets Senedd support, from 2027-28, the scope of the lower multiplier, currently applied to retail shops, will be expanded to include pubs, restaurants, cafés, bars, food courts, licensed clubs and live music venues, hotels, guest houses and hostels, cinemas, theatres, libraries, museums and gyms.
The higher multiplier, which applies to the highest-value properties in Wales, will be increased to pay for the scheme. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here
While the exact multipliers for 2027-28 will be confirmed as part of budget preparations, following the UK Government’s Autumn Budget which takes place in October.
The difference between the higher multiplier and the standard multiplier for 2027-28 will increase by less than a penny in the pound, to around 2p in the pound.
Regulations will be brought forward in the autumn and, subject to Senedd approval, will take effect from April 1, 2027.
First Minister Rhun ap Iorwerth said: “Our high streets are the heartbeat of communities right across Wales, and the businesses that fill them deserve our backing.
“This 30% cut to rates for pubs, cafés, gyms, hotels and so many other local favourites is about giving those businesses the confidence to invest, grow and keep serving the communities that rely on them.
“We’re making the system work better for the sectors that bring our town centres to life.”
The change sits alongside the work of the Town Centres Taskforce, which will consider what more tailored support individual town centres need, recognising that different parts of Wales face different challenges.
Finance minister Elin Jones said it was a “significant change”.
“We’ve taken a balanced approach, ensuring this support is affordable while protecting the vital contribution business rates make to our public services – targeting help where it will have the greatest impact on our high streets.”
Cutting business rates has long been a call from the sector. In July, David Chapman from UKHospitality Cymru said: “Across every part of Wales and every part of hospitality, the message from businesses is the same: costs are too high.
“Business rates, employment taxes and VAT are all weighing down our businesses, forcing them to take difficult business decisions, like slamming the brakes on youth employment and investment.
“Hospitality’s cost and tax burden needs to come down and the immediate solution is simple – lower hospitality business rates.”








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