Business rates support announced for Welsh hospitality but ‘much more needed’

News of 50% business rates relief has been welcomed by Welsh hospitality businesses, although trade body UKHospitality Cymru says that urgent additional support will be needed to avoid “economic carnage” in the sector.

Finance minister Rebecca Evans announced the news today alongside the Welsh government’s three-year Budget.

Businesses in retail, leisure and hospitality will receive 50% non-domestic rates relief for 2022-23. This £116m package of funding, combined with existing permanent relief schemes, will be intended to support more than 85,000 properties during this time. A further £35m has also been confirmed to freeze the non-domestic rates multiplier for 2022-23, ensuring there will be no increase in the amount of rates businesses are paying.

David Chapman, UKHospitality executive director for Wales, said: “This help was essential to help our businesses from April forward, when there will be a new raft of challenges to face, including VAT returning to 20%, higher National Insurance contributions, and food, drink and energy inflation.

“However, businesses are waiting with trepidation to hear later today what new restrictions they will have to endure from 27 December. The sector faces economic carnage in the new year, after a vital Christmas season trading was dismantled by pessimistic messaging surrounding the new Omicron variant.

“We desperately need proportionate grant support to pull our businesses and workers out of huge debt and sub viable trading that we have endured for most of the past 21 months or so.”

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