UKHospitality Cymru issues warning over lack of business rates support

Welsh hospitality businesses could face “damaging” business rates hikes after the sector was sidelined in the Welsh government’s support package.

According to UKHospitality Cymru, Welsh restaurants, bars and hotels would effectively have no support in 2026-2027 unless there is further intervention from the Welsh government.

It comes after a new lower business rates multiplier was set aside only for the retail sector, ignoring calls for greater support for Welsh hospitality, which contributes £4b to the Welsh economy and employs more than 165,000 people, making it the country’s second biggest employer.

This is in contrast to the UK government, which said it would introduce further lower multipliers for retail, leisure and hospitality properties and a higher multiplier for properties with rateable values of £500,000 and above from 2026 to 2027.

Without further support, a typical high street pub in Wales will now be paying an extra £6,800 per year in business rates, a typical country hotel will have to spend an additional £17,000 a year, while city centre hotels are expected to pay nearly £50,000 in extra costs.

UKHospitality Cymru has called on Welsh business leaders to respond to the government’s consultation on proposals for non-domestic rates (business rates) differential multipliers, which is closing on 12 August.

David Chapman, executive director of UKHospitality Cymru, said: “This is a critical issue that will threaten the very existence of pubs, bars, hotels and restaurants across the UK.

“Hospitality must, without a shadow of a doubt, be included in any and every business rates support package if we are to avoid the sector being taxed out. Failing to recognise and implement support for hospitality would risk the Welsh government undermining their policy objectives, effectively leading to the gutting of the high street as we know it.

He added: “We urge all hospitality businesses across Wales, large or small, to back our calls for support from government, by submitting their views to the Senedd before this crucial consultation closes on 12 August.”

Welsh hospitality businesses have been encouraged to add a signature to a letter devised by UKHospitality Cymru, addressed to the Senedd.