News / Press release / Business rates

Incentivise investment through rates relief

We’ve backed Welsh Government proposals to ensure businesses are not inadvertently penalised for improving their venues or investing in renewables.

In responses to consultations on renewable energy rates support and improvement rates relief, we have said the plans will incentivise hospitality businesses to invest in their venues to improve its carbon footprint or improve the customer experience.

What is being proposed?

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    Renewable energy rates support

    Welsh Government has proposed that eligible plant and machinery for onsite renewables and electric vehicle charge points are exempt from property valuations. This means businesses are not unfairly penalised by the business rates system for increase the value of their property.

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    Improvement rates relief

    Welsh Government has also proposed to support ratepayers investing in improvements to their non-domestic properties by providing relief from the effect of any resulting rateable value increase for a period of 12 months.

Our response

David Chapman, UKHospitality Cymru Executive Director, applauded the plans as a positive demonstration of Welsh Government backing business.

He also urged them to go even further by making the measures permanent and to consider other areas, including desperately needed business rates reform, which could support the industry as it continues to rebuild.

David Chapman, Executive Director, UKHospitality Cymru

David Chapman, Executive Director, UKHospitality Cymru

Hospitality businesses in Wales are keen to make improvements to their venues, whether it’s improving existing buildings or investing in new technology to help them become more sustainable.

Incentivising business to make improvements to their venues is a win-win. Not only does it improve efficiency and sustainability but it can help attract more people to a local area, support high-streets and drive business investment.

I’m pleased the Welsh Government has recognised the benefits these exemptions and reliefs can deliver. Not only is it a common-sense approach to encourage investment but it’s a clear signal to business that their concerns are being heard.

I’d encourage the Government to go a few steps further by making the renewables proposal permanent and extending the proposed relief period for buildings improvements from 12 months to 24 months, in addition to considering a radical rethink of business rates reform.

David ChapmanExecutive Director, UKHospitality Cymru