Wales to implement 30% business rates cut for hospitality and leisure

The Welsh government has announced a 30% cut in business rates for certain hospitality, accommodation, and leisure venues, including pubs, hotels, and gyms. The permanent reduction is scheduled to take effect in April 2027 for small and medium-sized businesses with a rateable value below £51,000.

To fund this relief without reducing local authority funding, the government will implement a small increase in rates for businesses with the highest-value properties, such as large supermarkets and certain hotels. First Minister Rhun ap Iorwerth stated the move aims to help businesses and communities thrive by rebalancing how business rates function.

While UK Hospitality Cymru welcomed the news, industry leaders cautioned that businesses continue to face significant tax and labor pressures. Additionally, upcoming structural changes to the non-domestic rates system in April 2026 will introduce a three-tier multiplier framework. Under these provisional rules, properties will be assessed using retail, standard, or higher multipliers, which may impact how different service and retail sectors calculate their liabilities.