Back hospitality and boost Welsh economy with sector-wide business rates cut

July 8, 2026

UKHospitality Cymru has called on the new Welsh Government to reduce business rates for hospitality, which would represent swift delivery of its manifesto commitment.

With hospitality businesses across pubs, restaurants, hotels, cafes and many more continuing to be under immense cost pressure, reduced business rates would support business viability, ease youth unemployment and drive economic growth.

Plaid Cymru committed to cutting business taxes for hospitality businesses in its manifesto, with UKHospitality Cymru recommending reforming or replacing business rates to achieve a permanent, lower rate for hospitality businesses.

The call from the sector comes as the Senedd debates hospitality and tourism issues today [Wednesday 8 July].

David Chapman, Executive Director of UKHospitality Cymru, said: “Across every part of Wales and every part of hospitality, the message from businesses is the same: costs are too high.

“Business rates, employment taxes and VAT are all weighing down our businesses, forcing them to take difficult business decisions, like slamming the brakes on youth employment and investment.

“Hospitality’s cost and tax burden needs to come down and the immediate solution is simple – lower hospitality business rates.

“It would be an early signal from the new Welsh Government that it backs our pubs, cafes, restaurants and hotels, and would speedily deliver one of its manifesto commitments.

“The broken business rates system is a hospitality-wide solution that needs a hospitality-wide problem.

“Whether it’s the local pub, the seaside family hotel or the neighbourhood restaurant, they’re all major local employers, drivers of growth and hubs of our communities that are drowning in costs and in need of lower business rates.”