PUBS, restaurants, cafes, bars and live music venues across Wales are set to benefit from additional business rates relief, as the hospitality sector continues to face rising costs and closures.
Around 4,400 hospitality businesses will be eligible for 15% relief on their rates bills for 2026-27. The Welsh Government is providing up to £8 million for the scheme, drawing on UK Government funding while also using its own resources to broaden the support available to businesses in Wales.
A Welsh Government spokesperson said: “This support for food and drink hospitality builds on substantial existing assistance. Almost half of pubs in Wales already benefit from Small Business Rates Relief, and over a quarter pay no rates at all. Our permanent reliefs are worth £250 million every year.
“From April, the multiplier used to calculate rates bills will be reduced for the first time since 2010, and £116 million in transitional relief will be provided over two years to help businesses adjust to the revaluation.”
In January, the UK Government announced that pubs in England would receive a 15% reduction on new business rates bills from April, followed by a two-year real-terms freeze.
Last month, David Chapman, executive director of UKHospitality Cymru, warned: “The business rates system is broken and now risks breaking hospitality businesses in Wales. Welsh hospitality faces an April cliff-edge, with rates set to rise by £122 million over the next three years.
“It is vital that every penny the Welsh Government receives as a result of the new hospitality financial support announced in England – and more, if possible – is committed to alleviating these increases. I urge the Welsh Government to engage with us on measures to reduce business rates from April, which will help protect jobs and local communities.”
Finance Secretary Mark Drakeford said: “Pubs, restaurants, cafes, bars and live music venues are at the heart of communities across Wales. We know they are facing real pressures, from rising costs to changing consumer habits.
“This additional support will help around 4,400 businesses as they adapt to these challenges. We have extended the relief to restaurants and cafes as well as pubs and live music venues because, in towns and high streets across Wales, these businesses often operate side by side in direct competition. It makes sense to support them equally.
“This builds on more than £1 billion in temporary rates relief we have provided since 2020, alongside permanent reliefs worth £250 million every year. We will continue to stand behind the hospitality businesses that serve our communities.”
Eligible businesses can apply for the relief through their local authority from April 2026.
