Wales Cuts Hospitality Business Rates by 30 Percent
The Welsh Government will cut business rates for hospitality venues by 30 percent from April 2027. Businesses with a rateable value below GBP 51,000 will be eligible for the discount.
The reduction covers hospitality and leisure premises. UKHospitality Cymru welcomed the announcement on 18 September 2026.
Which Premises Qualify
The cut covers pubs, restaurants, cafes, bars and hotels. Eligibility turns on the rateable value, set below GBP 51,000.
UKHospitality Cymru Welcomes the Decision
UKHospitality Cymru is the Welsh arm of UKHospitality, the trade body for the sector.
UKHospitality Cymru had proposed the lower multiplier in its manifesto ahead of the Welsh elections, and had campaigned for it since. Its own analysis shows that 84 percent of ratepaying hospitality businesses will benefit from the cut.
The Venues Outside the Cut
UKHospitality Cymru raised concerns about the businesses that will not feel the benefit. Its analysis puts that group at 16 percent of ratepaying hospitality venues.
A surcharge applies to properties with a rateable value over GBP 100,000. UKHospitality Cymru states that more than 500 venues will pay more on their business rates bills as a result.
The 84 percent, GBP 100,000 and 500 figures come from UKHospitality Cymru's own analysis.
Coastal Hotels and High-Value Areas
The trade body points to larger properties such as coastal hotels and venues in high-value areas. It names Cardiff as an example of a high-value area.
UKHospitality Cymru states that these venues carry the same cost challenges as the rest of the sector. It asked the Welsh Government to exempt hospitality venues from the surcharge so that no venue sees its rates rise.
David Chapman's Statement
David Chapman, Executive Director of UKHospitality Cymru, said the Welsh Government had recognised that hospitality and leisure businesses are suffering under a huge tax burden and had acted to reduce bills for the majority.
Chapman said a lower multiplier for hospitality is a common-sense solution that the body put forward in its manifesto and campaigned for extensively. He said ministers took time to engage with UKHospitality Cymru seriously on the proposal and to act accordingly.
Chapman said a significant number of hospitality venues will not be eligible for support. He said more than 500 venues that employ significant numbers of people locally will see their rates bills rise.
Chapman asked the Welsh Government to exempt hospitality businesses from the surcharge. He said no venue should see its rates increase, at the very least.
Chapman described the rates reduction as a downpayment on a whole hospitality solution that goes further at the Welsh Budget. He said he looks forward to continued work with the Welsh Government on growth, jobs and communities.
What Happens Next
The cut takes effect in April 2027. Rates bills for eligible premises drop by 30 percent from that date.
UKHospitality Cymru continues to press for the surcharge exemption. The Welsh Government has not responded to that request in the release.