Wales business rates plan ignores hospitality

The Welsh government has announced a 12-week consultation on business rates, which some are saying ignores pubs, bars and the hospitality industry as a whole. 

While finance secretary Mark Drakeford says his plans could benefit around 13,000 retail properties across Wales, trade body UKHospitality Cymru says the outline proposals “simply ignored” the severe challenges faced by hospitality businesses, which now face paying unsustainable, inflated business rates.

Under Drakeford's plans, business rates would be cut for retail shops with rateable values less than £51,000, to help them compete with online retailers. Larger properties with rateable values over £100,000 could be charged slightly more.

"The Welsh government claims it recognises the ‘unique challenges’ faced by bricks and mortar businesses, yet it has simply ignored and overlooked hospitality as one of the sectors most impacted long-term by the broken business rates system," says David Chapman, executive director of UKHospitality Cymru.

"These plans would see bills dramatically hiked, by the tens of thousands for many, and force businesses to reduce their hours, cut jobs and see many close for good – all of which would be a direct consequence of the Welsh government’s actions."

What's the timeline?

The consultation runs from 20 May to 12 August 2025. If approved, the changes would start on 1 April next year. The exact rates will be set during the Welsh government's budget planning for 2026-27.

UKHospitality Cymru has called for wholesale revision of the plans, which would see only the smallest retail stores benefit, to ensure hospitality venues are eligible for a lower multiplier and therefore able to benefit from lower rates bills.

"It will make Wales a significantly worse place to do business and see investment in hospitality diverted to the other side of the border to England," adds Chapman. "It is a fact that hospitality businesses pay three times more than their fair share in business rates – something that the UK government has recognised and is addressing in its own business rates reform."

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