Eligible hospitality and leisure businesses across Wales are set to receive a permanent 30% reduction in their business rates bills from 1 April 2027 under plans announced by the Welsh Government.
Which businesses will qualify
The proposed change will apply to eligible properties with a rateable value below £51,000 and is intended to provide longer-term support for businesses operating in Wales' high streets and town centres.
The hospitality businesses covered include pubs, restaurants, cafés, bars, food courts, licensed clubs and live music venues. Hotels, guest houses and hostels are also included, alongside leisure businesses such as cinemas, theatres, libraries, museums and gyms.
The change would represent a significant increase in support compared with the temporary relief currently available to eligible food and drink hospitality businesses.
For the 2026-27 financial year, Wales has a temporary food and drink hospitality rates relief scheme offering eligible businesses a 15% discount on their non-domestic rates bills. That relief is available from 1 April 2026 until 31 March 2027.
How the permanent reduction will work
From 2027-28, the Welsh Government intends to expand the lower business rates multiplier to cover selected hospitality and leisure properties.
The government says eligible properties in the affected sectors with a rateable value below £51,000 will receive the equivalent of a 30% reduction in their non-domestic rates bill.
Rather than funding the measure through a separate grant, the government plans to adjust the structure of the business rates system.
The lower multiplier will be extended to the newly eligible sectors, while the higher multiplier applied to the highest-value properties will increase marginally to offset the cost of the change in revenue terms.
The precise business rates multipliers for 2027-28 have not yet been confirmed. The Welsh Government says these will be set as part of its budget preparations following the UK Government's Autumn Budget.
The proposed changes therefore do not mean that every pub, restaurant or café will automatically see a bill exactly 30% lower than its current bill. Eligibility depends on the property's rateable value and classification, while the final multiplier figures will be confirmed later.
Permanent support instead of temporary relief
The Welsh Government has described the measure as permanent support for eligible businesses, contrasting it with the temporary relief currently available to food and drink hospitality businesses.
The announcement forms part of the Welsh Government's wider plans to change the business rates system and support high streets.
First Minister Rhun ap Iorwerth said the policy was intended to give eligible businesses greater confidence to invest and continue operating in their communities. Finance Minister Elin Jones described the change as a permanent measure targeted at hospitality and leisure businesses.
The policy will not apply universally across the hospitality sector. Businesses occupying properties with a rateable value of £51,000 or more are outside the stated threshold for the lower multiplier.
Businesses also need to distinguish the new measure from the existing temporary relief. The latter runs only until the end of March 2027, while the proposed new system is intended to apply from the following day.
What happens next
The regulations needed to implement the changes are due to be brought forward in autumn 2026 and will require Senedd approval.
For Welsh food businesses, the practical effect will therefore depend on their individual rateable value, property classification and the final multiplier confirmed for 2027-28.
The announcement nevertheless provides a clearer indication of the direction of business rates policy for the sector, with the Welsh Government proposing longer-term support rather than another short-term relief arrangement.
Sources
Welsh Government - 30% business rates cut for high street hospitality and leisure venues
Business Wales - Non-domestic rates stakeholder update: September 2026
Business Wales - Food and Drink Hospitality Rates Relief 2026-27
