Ahead of the Welsh Budget, UKHospitality Cymru is calling for 40% business rates relief to be maintained for hospitality businesses.
The leading trade body has said it is essential that relief is extended to ensure that Welsh businesses are not left uncompetitive with the rest of the UK.
Both England and Scotland have in place 40% business rates relief schemes from next April, and failure to extend the current Welsh scheme would leave hospitality venues in Wales at a significant disadvantage.
If there was no relief for Welsh hospitality businesses:
- A local pub would see its rates bill increase by almost £5,000 next year, and its increased rates would be £5,400 higher than an English equivalent.
- A town centre restaurant would see its rates bill increase by £11,700 next year, and its increased rates would be £13,600 higher than an English equivalent.
- A coastal hotel would see its rates bill increase by £18,700 next year, and its increased rates would be £19,000 higher than an English equivalent.
David Chapman, Executive Director of UKHospitality Cymru, said:
“Business rates relief has been incredibly important for Welsh hospitality businesses and we’ve been grateful that the Welsh Government has recognised how valuable it is for the sector since the pandemic.
“We’re urging the Welsh Government to maintain those levels of relief in its upcoming Budget, particularly as hospitality businesses are feeling the pinch now more than ever.
“It’s also the case that the majority of businesses in both England and Scotland will benefit from 40% relief next year, and any decision by the Welsh Government not to extend existing relief at the current 40% will only serve to disadvantage local Welsh businesses.
“Hospitality is so important to our economy, culture and communities in Wales and I hope this is recognised through an extension to business rates relief.”
