The changes to Welsh law pave the way for a lower level of business rates for hospitality.
The Local Government Finance (Wales) Act became law today and introduces measures to easily reform business rates. This includes:
Enabling changes to the calculation of payments for different categories of ratepayers.
More flexibility to make changes to reliefs and exemptions.
• UKHospitality is urging the Welsh Government to use these new powers to immediately introduce a lower, permanent and universal multiplier for Welsh businesses.
The new laws also provide a framework of how the UK Government in Westminster can implement similar measures to introduce a lower multiplier for hospitality businesses in England in a cost neutral way.
David Chapman, Executive Director of UKHospitality Cymru, said: “This is a pioneering move from the Welsh Government and clearly demonstrates that they have been listening to our concerns about the broken business rate system.
“With the law now changed, I hope the Welsh Government will immediately utilise it to implement a lower multiplier for hospitality. This would begin to fix a system that is stacked against bricks and mortar businesses, while also freeing up much-needed cash for hard-pressed venues.”
Kate Nicholls, Chief Executive of UKHospitality, said: “With a manifesto commitment to level the playing field between high street businesses and online giants, the UK Government can look towards its counterparts in Wales for a blueprint on how to begin that journey.
“Hospitality businesses pay three times as much in business rates than they should do, and legislation like this that enables differential business rates is a practical way to address that imbalance.
“With a looming business rates cliff edge in April, where venues face their bills quadrupling, there needs to be urgent action at the Budget and a lower, permanent and universal multiplier for hospitality must be a central part of that.”
Leon Thompson, Executive Director of UKHospitality Scotland, said: “With the Scottish Government committed to reviewing business rates for hospitality, now is the perfect time to engage with the Welsh Government to learn about these changes.
“Developing a fair business rates system for hospitality in Scotland is vital to unlocking investment, growth and employment opportunities.”
