What the Welsh Government's announcement on business rates means for rural businesses
Policy Adviser Mark Burton analyses the business rates cut for hospitality and leisure
The Welsh Government has announced an extension of the lower “retail” business rates multiplier to hospitality and leisure businesses, a policy CLA Cymru directly requested in our manifesto for Wales. Whilst the exact multipliers for 2027 are unknown, this should significantly reduce the bill for members with pubs, smaller camp sites, wedding venues and more.
Unfortunately, the relief is to be funded by an uplift on the highest rate, for premises of rateable value of over £100,000. The higher rate multiplier is only fractionally higher than the standard rate, and Welsh Government claims the increase caused by this latest policy will only be “small”. However, the value of premises is not an indicator of a business’s ability to withstand tax increases. We therefore opposed the introduction of this higher rate and will continue to oppose it.
CLA Cymru will input to guidance on applicable businesses to ensure members can qualify easily without dispute from the Valuation Office. In particular, we will seek to make clear that equestrian businesses qualify for the relief.
