---
title: "Welsh government confirms 30% business rates cut for hospitality sector"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-09-15T06:39:20+00:00"
modified: "2026-09-15T06:39:20+00:00"
date: 2026-09-15
canonical: "https://stockmark.it/pubs-hotels-and-gyms-in-wales-to-get-30-business-rates-cut/"
category: "Business"
categories: ["Business", "Financial", "Government", "Hospitality Industry"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/welsh-government-confirms-30-business-rates-cut-for.png?fit=1536%2C1024&quality=80&ssl=1"
format: "news"
language: "en-GB"
---

# Welsh government confirms 30% business rates cut for hospitality sector

**Published:** September 15, 2026
**Author:** Stockmark.IT Website
**Categories:** Business, Financial, Government, Hospitality Industry
**Featured image:** ![Welsh government confirms 30% business rates cut for hospitality sector](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/welsh-government-confirms-30-business-rates-cut-for.png?fit=1536%2C1024&quality=80&ssl=1)

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The Welsh government has announced that pubs, hotels, cinemas, and leisure venues will receive a permanent 30% reduction in business rates starting in April 2027. First Minister Rhun ap Iorwerth stated that the measure is designed to support the hospitality, accommodation, and leisure sectors, allowing these businesses to thrive and, in turn, strengthen local communities. The announcement was made during a visit to a pub in Cardiff, where the First Minister emphasised the importance of using available governmental powers to bring vibrancy to high streets across Wales.

The new rate cut will apply to small and medium-sized enterprises with a rateable value below £51,000. This permanent reduction replaces the current temporary 15% cut for hospitality businesses. The government confirmed that the funding for this relief will come from a modest increase in the business rates paid by the highest-value properties in Wales. This group includes large hotels, firms with extensive sites, and supermarkets. Ministers assured that this adjustment ensures there will be no reduction in the direct funding redistributed to local authorities, maintaining the financial stability of public services while supporting the private sector.

Finance Minister Elin Jones explained that the policy aims to rebalance the business rates system by placing a greater burden on larger businesses rather than smaller operators. She noted that the increase for the largest properties amounts to approximately one penny in every pound. Jones visited the Radyr Tap in Cardiff to celebrate the announcement, where she attempted to pull a pint, a task the landlord, Phil Newbould, suggested could use some improvement. Despite the lighthearted moment, Newbould acknowledged that the rate cut would be helpful for his industry, although he estimated the saving to be around £3,000 a year across the two pubs he manages.

Newbould indicated that while the reduction is beneficial, he believes more action is required. He pointed to the value added tax (VAT) rate, which is controlled by the UK government in Westminster, as a significant cost factor for hospitality businesses. He argued that a reduction in VAT would have a more substantial impact on costs than the business rates cut alone. This view aligns with broader industry sentiments regarding the cumulative effect of various taxes and rising operational costs, including inflation and increases in the minimum wage and National Insurance contributions.

Oliver Banks, owner of the Kindred cafe and wine bar in Cardiff city centre, welcomed the news, describing it as fantastic. He suggested that the additional financial breathing room could allow businesses to manage food and drink costs more effectively, potentially keeping prices stable for customers in the current economic climate. Banks noted that the hospitality sector is not dominated by wealthy operators and that business owners cannot indefinitely pass rising costs onto guests without risking customer attrition.

David Chapman, director of UK Hospitality Cymru, described the rates cut as the beginning of a positive change. He warned, however, that the sector continues to face a complex web of taxation and high costs, including energy and labour. Chapman characterised the current business environment as a difficult balancing act, comparing it to spinning plates while riding an exercise bike. He expressed hope that the new rates structure would enable businesses to plan for growth and create further employment opportunities.

The UK government, which retains control over VAT and National Insurance, responded by highlighting its own measures to support the sector. A spokesperson noted that the Chancellor had already announced a 20% business rates cut for pubs, social clubs, and live music venues in England, also effective from April 2027. The spokesperson added that because business rates are devolved, the Welsh government has the discretion to allocate the resulting funding as it sees fit, potentially providing additional resources for local economies.

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