Restaurants, pubs and shops in Wales will pay more in business rates next year after the government announced a cut in the level of support in 2024.
From 1st April, hospitality business in Wales will see their business rates relief reduced from 75% to 40%, while rates will also rise 5%.
Finance minister Rebecca Evans said: “We have had to take some really difficult decisions to radically redesign our spending plans to focus funding on the services which matter most to the people of Wales.”
While the decision to continue business rates relief has been welcomed by the industry, there is concern that the reduction in support will have a negative impact on hospitality businesses, especially when compared to those in England where rates relief currently stands at 75%.
Cymru executive director David Chapman, says: “It must be remembered that hospitality businesses already pay more than their fair share of business rates because the current system is out-of-date and punitive for bricks and mortar businesses.
“This reduced level of support now leaves businesses in Wales at a competitive disadvantage to businesses in England.
“Small businesses, in particular, will feel hard done by as their counterparts will see rates frozen across the border. A typical local pub or restaurant in Wales will, for example, be paying £6,400 more than one in England.”