Pubs, hotels and gyms in Wales to get 30% business rates cut
The cuts comes into effect in April, but the largest businesses will pay higher rates to fund the changes.
The Welsh government has announced a 30% reduction in business rates for pubs, hotels, and gyms in Wales, set to take effect in April 2027. First Minister Rhun ap Iorwerth unveiled the measure during a visit to a pub in Cardiff, emphasizing that the funding would come from a small increase in the rates paid by businesses with high-value properties.
The move aims to support businesses and help local communities thrive. The 30% cut will replace the current 15% temporary rate cut for hospitality businesses and is funded by the same increase in rates for larger businesses. UK Hospitality Cymru welcomed the decision but cautioned that businesses still face significant taxation from various sources.
Hotel owner Phil Newbould welcomed the cut but suggested there is still room for improvement. Cafe and wine bar owner Oliver Banks expressed optimism about the rate reduction, noting it would provide more flexibility for costs. Despite the positive reception, trade body UK Hospitality Cymru highlighted the sector's challenges, pointing to VAT, inflation, energy costs, and labor expenses.
The UK government's decision to cut business rates by 20% for pubs, social clubs, and live music venues also supports the Welsh hospitality sector.
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