Lower Business Rates for Welsh Hospitality, Minister Urged

UKHospitality Cymru has called on the Welsh Government to introduce practical measures to reduce the tax burden on the hospitality sector, which it says remains one of the highest of any industry in the UK.

The trade body raised the issue directly with Adam Price MS, the Cabinet Minister responsible for economic strategy and hospitality, during a recent meeting.

David Chapman, Executive Director of UKHospitality Cymru, told the Minister that cutting business rates for hospitality businesses would offer a straightforward and effective way to ease cost pressures across the sector.

UKHospitality Cymru is pressing for a reduced business rates multiplier for hospitality, bringing it into line with the rate applied to high street retail. Chapman also urged the Welsh Government to back the #VATsTheProblem campaign, which is calling for hospitality VAT to be cut to 10% and has now gathered more than 350,000 supporters.

Commenting after the meeting, Chapman said: “It was great to meet with the Minister, who I felt took the concerns of the sector seriously and understood the need to reduce hospitality’s tax burden. I’m hopeful this will result in positive action from the Welsh Government.

“Welsh hospitality remains taxed out, and every day that passes sees local community venues struggle with higher and higher costs. Inflated and unjust business rates are the hallmark of a tax system that continues to punish bricks and mortar hospitality businesses.

“Lowering hospitality’s business rates payments to the same level as high street retail is a common-sense solution that would alleviate cost pressures, boost our ability to employ young people and support high street regeneration.”

He added that longer-term reform of the business rates system remains essential. “I hope short-term measures to reduce our tax burden will be accompanied by a commitment to reform business rates and work more closely with the hospitality sector.”