The Local Government Finance (Wales) Bill passed in the Senedd today introduces measures that can more easily allow much-needed reform of business rates.
This includes:
- More flexibility to make changes to reliefs and exemptions.
- Enable changes to the calculation of payments for different categories of ratepayers.
UKHospitality Cymru has long-called for differential multipliers and the Welsh Government now has the power to implement a lower rate for hospitality.
It is urged to do so to rectify the imbalance of the current system, where hospitality businesses pay three times more than other sectors, as a proportion of turnover.
David Chapman, Executive Director of UKHospitality Cymru, said:
“I’m delighted that Welsh Government is taking seriously our calls for reform of business rates, through these changes to the tax system and its 12-month review of business rates reliefs.
“This paves the way for a lower multiplier for hospitality, which we’ve been calling for to reduce the burden on our sector and increase the fairness of the rates system.
“Hospitality pays three times more than sectors like banking, for example, as a proportion of turnover, which is completely unjust and penalises bricks and mortar businesses.
“Total reform of the system is desperately needed and I hope that the Welsh Government will work closely with the UK Government, which has pledged to reform rates, to ensure there is consistency and a level playing field across the UK.”
