UKHospitality Cymru claims a typical high street pub could be forced to pay an extra £6,800 per year in business rates in 2026/27, with hotels facing a rise of up to £50,000, after the Welsh Government ‘sidelined the sector’ in a new batch of rating plans.
It comes as a 12-week consultation to cut business rates for smaller retail shops in Wales, nears its end.
If approved, the plans would cut rates for retail shops with rateable values less than £51,000, to help them compete with online retailers.
According to the Welsh Government, the move could benefit around 13,000 retail properties across Wales.
A consultation into the plans was launched on 20 May and is set to run until 12 August.
UKHospitality Cymru says setting set aside a new lower business rates multiplier solely for the retail sector ‘ignores the requirements of hospitality’.
The trade body is calling on the Welsh Government to extend business rates support to include hospitality in the 2026/27 financial year and asking business leaders to join it in responding to the Government’s consultation.
“This is a critical issue that will threaten the very existence of pubs, bars, hotels and restaurants across the UK,” says David Chapman, executive director of UKHospitality Cymru.
“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.”
UKHospitality Cymru has drafted a letter on the matter that businesses can add their signature to, which will be delivered directly to the Senedd.
Operators wishing to add their signature to the letter can click here. Those who would like to respond directly to the consultation can do so here.