Botched Business Rates Plan Risks Hospitality Closures And Job Losses

Welsh Government proposals to omit hospitality from business rates reform will dramatically increase costs sector leaders say.

UKHospitality Cymru said the outline proposals “simply ignored” the severe challenges faced by hospitality businesses, who now face paying unsustainable, inflated business rates.

Returning the sector to full business rates, on top of enormous cost increases this year, and excluding it from reform would see bills dramatically increase yet again. This level of increase would be unsustainable, forcing businesses to cut jobs, reduce trading hours or, in the worst-case scenario, close for good.

UKHospitality Cymru 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.

David Chapman, Executive Director of UKHospitality Cymru, said:
“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.

“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.

“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.

“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.

“I urge the Welsh Government to recognise the catastrophic damage these proposals would wreak and take them back to the drawing board for wholesale revision. Reduce rates across the hospitality sector and let us continue to rebuild, serve our communities, create jobs for local people and play a key role in fostering economic growth.”