What impact does the current rate of business rates in Wales have on pubs and the hospitality industry?
The latest non-domestic rates revaluation took effect on 1 April 2023. Revaluations are carried out to maintain fairness in the non‑domestic rating system, by redistributing the total amount payable between ratepayers, to reflect relative changes in the property market. As a result of the revaluation, the average rateable value across the hospitality sector fell, resulting in lower non-domestic rates liabilities for thousands of businesses in the hospitality industry.
Where pubs and other businesses in the hospitality industry have seen increased rateable values following revaluation, we are supporting them through our Transitional Rates Relief scheme. We are providing all ratepayers whose liability is increasing by more than £300, as a consequence of revaluation, with transitional relief. Any such increase in non-domestic rates liability will be phased in over two years, before reaching their full liability in the third year following revaluation. We are providing £113m over two years to fund this relief, supporting all areas of the tax-base in a consistent and straightforward way.
Pubs and other businesses in the hospitality industry will also benefit from our Retail, Leisure and Hospitality Rates Relief scheme. The Welsh Government is providing over £140m of non-domestic rates relief for retail, leisure and hospitality businesses in Wales. Eligible ratepayers will receive 75% rates relief for the duration of 2023-24. The scheme will be capped at £110,000 per business across Wales and will operate in a similar way to how it operated during 2022-23.
The Retail, Leisure and Hospitality Rates Relief scheme was established in 2020-21 in response to the pandemic. It has provided over £1bn in targeted rates relief to these sectors since its introduction. It operates in addition to our permanent relief schemes and targeted grant support.