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Hospitality business rates to jump 80% in Wales by 2029, UKH warns

Hospitality businesses in Wales face an 80% rise to £131m in business rates by 2028/29 after being excluded from the Welsh government’s reform plans, according to analysis by UKHospitality Cymru.

The industry body said its modelling shows bills would increase by £19.6m in 2026/27, by £43.3m in 2027/28 and by £67.7m in 2028/29, compared with current payments. It said the projected rises reflect a 26% uplift in rateable values, the removal of rates relief and the sector’s omission from the reform package.

UKHospitality Cymru has warned that the increases risk accelerating venue closures and job losses unless ministers revisit their approach. It also attributed the rises to the government “stripping out any meaningful business rates support from hospitality businesses”.

David Chapman, executive director of UKH Cymru, said: “An extra £131m in costs for the sector is simply too much to bear and it will sadly result in business closures and job losses, hitting Welsh high streets and communities. That will be the consequence of the Welsh government’s failing to support hospitality.

“Our local pubs, restaurants, hotels and cafes have been penalised for far too long by a broken business rates system that hits bricks and mortar businesses harder than anyone else. The decision by the Welsh Government to overlook hospitality from its reforms is deeply damaging and will be devastating for Wales.”

He added: “We need help quickly and the Welsh Government needs to urgently act. It must overhaul its business rates reform to include hospitality to avoid the disastrous consequences these significant extra costs will have on Welsh hospitality.”

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Hospitality businesses in Wales face an 80% rise to £131m in business rates by 2028/29 after being excluded from the Welsh government’s reform plans, according to analysis by UKHospitality Cymru.

The industry body said its modelling shows bills would increase by £19.6m in 2026/27, by £43.3m in 2027/28 and by £67.7m in 2028/29, compared with current payments. It said the projected rises reflect a 26% uplift in rateable values, the removal of rates relief and the sector’s omission from the reform package.

UKHospitality Cymru has warned that the increases risk accelerating venue closures and job losses unless ministers revisit their approach. It also attributed the rises to the government “stripping out any meaningful business rates support from hospitality businesses”.

David Chapman, executive director of UKH Cymru, said: “An extra £131m in costs for the sector is simply too much to bear and it will sadly result in business closures and job losses, hitting Welsh high streets and communities. That will be the consequence of the Welsh government’s failing to support hospitality.

“Our local pubs, restaurants, hotels and cafes have been penalised for far too long by a broken business rates system that hits bricks and mortar businesses harder than anyone else. The decision by the Welsh Government to overlook hospitality from its reforms is deeply damaging and will be devastating for Wales.”

He added: “We need help quickly and the Welsh Government needs to urgently act. It must overhaul its business rates reform to include hospitality to avoid the disastrous consequences these significant extra costs will have on Welsh hospitality.”

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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.

The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making

The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.

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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution

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