Wales Sets a Permanent 30 Percent Cut
The Welsh Government will cut business rates for hospitality, leisure and visitor-economy premises by 30 percent from 1 April 2027. Premises with a rateable value below £51,000 qualify for the reduction. First Minister Rhun ap Iorwerth announced the measure on a visit to a pub in Cardiff.
The cut is permanent and replaces the 15 percent temporary relief now in place. Finance Minister Elin Jones said the burden of the increase that funds the cut will fall on the bigger businesses, not only in the hospitality sector. BBC News reported the figure as around 1p in every £1 of rates paid.
The change is subject to Senedd approval before the new arrangements take effect, per Harpers' account of the announcement.
In July, Prime Minister Andy Burnham announced a 20 percent cut in business rates for pubs, social clubs and live music venues in England, also due to come into effect from April 2027. BBC News reported the England measure.
Which Premises Qualify
The reduction covers small and medium-sized properties with a rateable value below £51,000. Pubs, bars, restaurants, hotels, live music venues, licensed clubs, gyms and cinemas fall inside the hospitality, accommodation and leisure categories the government named.
Business rates in Wales are collected by the Welsh Government and distributed to local authorities as direct funding. Ministers said this would ensure no reduction in the amount of funding for local authorities, BBC News reported. The funding comes from a small increase in the multiplier applied to the highest-value properties, those with a rateable value above £100,000, UKHospitality Cymru states.
UKHospitality Cymru Welcomes the Decision
UKHospitality Cymru, the Welsh arm of the sector trade body, welcomed the announcement in a statement published on 18 September 2026. The body had proposed a lower multiplier for hospitality in its manifesto ahead of the Welsh elections and campaigned for it since.
Its own analysis puts the share of ratepaying hospitality businesses that will benefit at 84 percent. The remaining 16 percent will not feel the benefit.
The Venues Outside the Cut
A surcharge applies to properties with a rateable value over £100,000. UKHospitality Cymru states that more than 500 venues will pay more on their bills as a result.
The 84 percent, the £100,000 threshold and the 500 venues come from UKHospitality Cymru's own analysis. The body points to larger premises such as coastal hotels and venues in high-value areas, and names Cardiff. It states these venues carry the same cost pressures as the rest of the sector.
David Chapman on the Decision
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. He said ministers had acted to reduce bills for the majority.
He described a lower multiplier for hospitality as a common-sense solution that the body put forward in its manifesto and campaigned for extensively. He said ministers had taken time to engage with UKHospitality Cymru on the proposal and to act on it.
Chapman also said a significant number of 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 while they strain under the same financial pressures.
The Request on the Surcharge
UKHospitality Cymru asked the Welsh Government to exempt hospitality venues from the surcharge, so that no venue sees its rates increase at the very least. Chapman tied the next move to the Welsh Budget and said the reduction must be a downpayment on a whole hospitality solution that goes further.
The statement records no response from the Welsh Government to the exemption request.
What the Cut Means to Operators
Phil Newbould, the landlord of the Radyr Tap in Cardiff, told BBC News that the saving across the two pubs he runs would come to £3,000 a year. He said the cut was not as huge as it sounds and that more can be done, and he pointed to the UK-wide campaign to cut the rate of VAT paid by hospitality businesses.
Oliver Banks, who opened the cafe and wine bar Kindred in Cardiff five months ago, told BBC News the cut would give the business more room on food and drink costs and go a little lighter on people.
What Happens Next
The cut takes effect on 1 April 2027 for premises that meet the rateable value threshold. Senedd approval is outstanding, and UKHospitality Cymru ties the next move on the surcharge to the Welsh Budget.