Welsh pubs, restaurants, cafés, bars, licensed clubs, hotels, gyms, cinemas and other hospitality and leisure companies will get a 30% reduction in business rates next year.
The Welsh government said the permanent support, introduced on 1 April 2027, will replace the temporary 15% relief for food and drink hospitality currently in place. It applies to properties with a rateable value below £51,000.
The reduction will be funded by a “small increase” to the business rates multiplier for the highest-value properties in Wales.
First minister Rhun ap Iorwerth said:
“Our high streets are the heartbeat of communities right across Wales, and the businesses that fill them deserve our backing.
“This 30% cut to rates for pubs, cafés, gyms, hotels and so many other local favourites is about giving those businesses the confidence to invest, grow and keep serving the communities that rely on them.
“We’re making the system work better for the sectors that bring our town centres to life.”
The precise values of all 2027-2028 multipliers in Wales will be confirmed following the UK government’s Autumn Budget on 28 October.
UK Hospitality Cymru director David Chapman welcome the cut in business rates but said businesses still face many challenges.
Speaking to the BBC, he said: “You have massive amounts of taxation coming from all areas. We have a VAT problem besides business rates. We also have high inflation in the industry over the last few years. Energy costs have been high. Labour costs have gone up incredibly, really, with the National Insurance changes.
“And so it’s been a very difficult job, a really difficult balancing act to keep going.”
On the business rates reduction, he said it was “the beginnings of a change which I hope will permanently enable our businesses to look at growth and to look at further employment, and to start to plan ahead”.
In England, pubs, clubs and live music venues will receive a 20% cut to their business rates bills from April 2027.
That follows a 15% reduction on pubs and live music venues’ rates bills from April this year, which was introduced after criticism that changes announced in the 2025 Autumn Budget would lead to company closures due to increased costs after a Covid-era discount for retail, leisure and hospitality firms was removed and properties were revalued.
Last month, the government announced a review into how the way business rates are calculated can be made fairer for pubs and hotels.
