The Campaign for Pub has welcomed the announcement by the Welsh Government that small and medium sized Welsh pubs would be given 30% business rates relief from April 2027, largely matching the two announcements made by the UK Government for pubs in England.

However unlike in England, large pubs have been excluded, as this relief strictly applies only to eligible properties with a rateable value below £51,000.

Moreover those with rateable values of over £100,000 will be asked to pay more. The Welsh Government has said that the relief will be funded by introducing a small increase to the higher multiplier rate, which applies to all businesses operating out of properties with a rateable value above £100,000.

Overall, whilst welcome, the new relief only replaces previous support put in place during the pandemic, yet actually just as necessary during the serious challenges of the cost-of-living crisis, soaring energy bills and customers cutting back spending.

While businesses in England received 75% business rates relief, Wales capped its Retail, Hospitality, and Leisure relief at 40%, causing immediate jumps in annual bills when this stopped, which was a serious blow to pubs struggling in the cost-of-living crisis.

The Campaign for Pubs continues to call for the business rates system to be abolished and replaced with something fairer, including in Wales. This needs to ensure that online retailers pay the same ro more as physical retailers, with physical retailers being the businesses that are essential to hugh streets and local economies all over Wales and the rest of the UK.

Gwyndaf Jones, Campaign for Pubs Spokesperson for Wales said:

“Today announcement by the Welsh Government is most welcome albeit a little late for some pubs which have already closed due to the substantial increases introduced in April. However many larger pubs will unfortunately not benefit from this relief.

“Pubs face a multitude of challenges at present in addition to high business rates, in higher labour, raw materials, and energy costs, as well of the threat of a holiday tax.

“Yet the greatest burden of all is the excessive VAT rates, at almost double paid by our European counterparts. This is the single biggest inhibitor to growth in the sector, and we also urge the UK Government to urgently review this”.

“Mae’r cyhoeddiad a wnaed heddiw gan Lywodraeth Cynulliad Cymru i’w groesawu’n fawr, er ei fod ychydig yn rhy hwyr i rai tafarnau sydd eisoes wedi cau oherwydd y cynnydd sylweddol a gyflwynwyd ym mis Ebrill. Yn anffodus, ni fydd llawer o dafarnau mwy yn elwa ar y rhyddhad hwn.

“Ar hyn o bryd, mae tafarnau’n wynebu llu o heriau yn ogystal â chyfraddau busnes uchel, gan gynnwys costau uwch ar gyfer llafur, deunyddiau crai ac ynni, yn ogystal â’r bygythiad o dreth gwyliau.

“Ond y baich mwyaf oll yw’r cyfraddau TAW gormodol, sydd bron yn ddwbl y rhai a delir gan ein cymheiriaid yn Ewrop. Dyma’r ffactor unigol fwyaf sy’n atal twf yn y sector, ac rydym yn annog y llywodraeth i adolygu hyn ar frys”.