Welsh government cuts tourism budget and hospitality business rates relief

The Welsh Government is to cut millions of pounds from the tourism budget and lower business rates relief for hospitality firms next year.

From 1 April, hospitality businesses in Wales will see their business rates relief reduced from 75% to 40%, while rates will also rise by 5%.

Finance minister Rebecca Evans said there had been "some really difficult decisions" to be made around spending plans to help fund the country's health service.

While the extension of some support was welcomed by the hospitality industry there were concerns businesses would struggle with the lower level of aid.

UKHospitality Cymru executive director David Chapman said Welsh businesses would be at a "competitive disadvantage" to those in England, where the 75% relief was extended in the Autumn Statement last month.

"Small businesses, in particular, will feel hard done by as their counterparts will see rates frozen across the border," added Chapman.

"A typical local pub or restaurant in Wales will, for example, be paying £6,400 more than one in England."

In its budget for 2024/25, the Welsh Government also cut the budget for tourism, culture and sport by £16m.

Chapman said the move was "extremely disappointing" for the sector.

"[Tourism] is a strategically important sector in Wales and central to our culture – it needs investment and this sharp reduction in overall budget is worrying.

"At a time of intense economic challenges, this slashing of the tourism budget will do little to inspire long-term confidence in the sector, particularly alongside the looming introduction of a visitor levy and other policies that are impacting hard on the sector."

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