Welsh Hospitality Facing Fight To Avoid Being Taxed Out
Besieged Welsh hospitality businesses are now facing substantial and potentially damaging business rates hikes after the Welsh Government sidelined the sector in a new batch of rating plans.
The new proposals, coupled with the cut off in business rates funding from Westminster, will mean that there will effectively be no support for Welsh hospitality businesses in 2026/27 unless the Welsh Government acts.
That’s because a new lower business rates multiplier has been set aside solely for the retail sector and ignoring the requirements of hospitality in 2026/27, a still struggling sector that is nevertheless the second biggest employer in the country.
That lack of support will mean a typical high street pub will be paying an extra £6,800 per year in business rates; a typical country hotel would see an increase of around £17,000 per year; and a city-centre hotel would see nearly £50,000 extra in costs. Some of Wales’s finest accommodation attractions will see even bigger increases, damaging domestic, international and business tourism.
UKHospitality Cymru, the trade body for a sector than contributes £4bn to the Welsh economy and employs more than 165,000, has called on the Welsh Government to extend business rates support to include hospitality.
The trade association is seeking optimal support, to stall any proposed legislation to tax Welsh hospitality businesses out of existence.
It is calling for Welsh business leaders to join it in responding to the Government’s consultation which is due to close on Tuesday 12th August 2025.
It has drafted a letter that businesses can add their signature to, which will be delivered directly to the Senedd – to add your signature, please visit this link.
David Chapman, Executive Director of UKHospitality Cymru, said:
“This is a critical issue that will threaten the very existence of pubs, bars, hotels and restaurants across the UK.
“Hospitality must, without a shadow of a doubt, be included in any and every business rates support package, if we are to avoid the sector being taxed out. Failing to recognise and implement support for hospitality would risk the Welsh Government undermining their policy objectives, effectively leading to the gutting of the high street as we know it.
“We urge all hospitality businesses across Wales, large or small, to back our calls for support from Government, by submitting their views to the Senedd before this crucial consultation closes on 12th August.
“It’s vital that not only Welsh hospitality business receive business rates support, but also our counterparts in England and Scotland.”