Welsh Hospitality 'Risks Being Taxed Out of Existence By Business Rates Proposal'
A Welsh Government consultation on non-domestic rates is due to close on August 12.
The Local Government Finance (Wales) Act 2024 provided the Welsh Government with the ability to introduce differential multipliers for Wales using regulations. The current consultation seeks views on the Welsh Government's proposals to introduce differential multipliers from 1 April 2026.
The Welsh Government is proposing to introduce a lower multiplier for small to medium sized retailers. It says the proposal 'recognises the unique challenges faced by 'bricks and mortar' retail shops, not least through their exposure to competition from online retailers'.
It says its proposal 'would also be expected to indirectly benefit other sectors of the high street economy, through the visitor footfall supported by the maintenance of a viable retail sector'.
However UKHospitality Cymru says the proposals have 'sidelined the sector' and added that hospitality in Wales is now 'facing substantial and potentially damaging business rates hikes'.
It said:
'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.'
The trade association added that it 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 Welsh Government's consultation.
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.'
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