Pubs, hotels and gyms in Wales to get 30% business rates cut

Taxes paid by pubs, hotels and cinemas in Wales will fall after the Welsh government announced a 30% cut in some business rates.

First Minister Rhun ap Iorwerth said hospitality, accommodation and leisure venues would receive the permanent cut in rates from April 2027.

"It is about helping businesses like this to thrive, so our communities can thrive," ap Iorwerth said on a visit to a pub in Cardiff.

The cut, which will be funded by an increase in the rates paid by businesses with the highest-value properties, was welcomed by UK Hospitality Cymru. But the trade body warned businesses still faced "massive amounts of taxation coming from all areas".

Business rates are collected by the Welsh government before being redistributed as direct funding to local authorities in Wales.

The government said the 30% cut would apply to small and medium-sized businesses with a rateable value below £51,000.

It will be funded by "a small increase" in the rates paid by the highest-value properties in Wales, that includes some hotels and firms with large sites such as supermarkets.

Ministers said this would ensure there was no reduction in the amount of funding for local authorities.