Average Welsh Pub Faces 74% Business Rates Rise After New Government Announcement, New Analysis Shows

The average Welsh pub will now face a 74% increase in its business rates bill next April following the announcement by the Welsh Government (3 December), according to new analysis by global tax firm Ryan.

The written statement issued on Wednesday by Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language, confirmed new multipliers for 2026/27 and the structure of Wales’s Transitional Relief scheme.

The steep rise for the sector Ryan says is driven by three combined factors:

1. A 28% rise in average pub rateable values in the Draft 2026 Rating List
2. The withdrawal of the 40% Retail, Hospitality & Leisure (RHL) relief
3. Exclusion from the new 35p retail multiplier, which applies only to small shops, kiosks, pharmacies and post offices

Together, these changes mean the average Welsh pub will see its bill rise from £6,793 this year to £11,828 next year an increase of more than £5,000, even after applying Wales’s Transitional Relief scheme.

In the written statement, Drakeford said:
“The Welsh Government will also provide transitional relief to all ratepayers whose liabilities will increase by more than £300 following the revaluation.”

However, Transitional Relief in Wales only applies to the increase caused by the revaluation itself. It does not protect businesses from the much larger rises caused by the withdrawal of RHL or their exclusion from the lower retail multiplier.

This differs from England, where the current Transitional Relief scheme does cushion the loss of RHL support for 2026/27.

Draft valuation data show increases across the hospitality and leisure sectors, including rises in rateable value in Wales of 8% for cafés, 7% for restaurants, 12% for smaller hotels, and up to 60% for larger branded and higher end hotels.

Alex Probyn, Practice Leader – Europe & Asia-Pacific Property Tax at global tax firm Ryan, said:
“This isn’t simply a revaluation issue it’s the combined impact of rising valuations, the loss of the 40% relief, and the fact that hospitality and leisure businesses are excluded from the new 35p retail multiplier. Transitional Relief won’t shield them from these increases, and the forthcoming Regulations must address that. England protects businesses from RHL withdrawal through its scheme. Wales must do the same.”

Other elements of the wider hospitality and leisure sector will face similarly severe increases unless the Welsh Government changes track when it publishes its forthcoming regulations.