Welsh Government announces £8m business rates relief for hospitality sector

The Welsh Government has unveiled an £8 million support package for around 4,400 hospitality businesses under the Non-Domestic Rates – Food and Drink Hospitality Rates Relief 2026/27 scheme. This follows the 15% ‘pub and live music venue relief’ announced for England at the end of last month, but with some notable differences in the scope and administration. Wider coverage, limited timeframe Unlike the English package, the Welsh scheme extends support to a broader range of hospitality businesses - including restaurants and cafés - but only for 2026/27. The total relief is capped at £110,000 per business, including subsidiaries. The relief will be administered by local authorities and ratepayers must apply between 1 April 2026 and 31 March 2027. Applications will be assessed at local level under each authority’s discretionary powers. Relief details Eligible businesses will receive 15% relief for the 2026/27 financial year. This will apply to properties used wholly or mainly for the sale of food and/or drink to the public, such as:

• Pubs
• Restaurants
• Cafés
• Bars
• Live music venues

The Welsh Government has also confirmed that this scheme is “likely to be treated as a subsidy”, meaning it will fall under UK subsidy control rules. This contrasts with the position in England, where the equivalent relief is not capped and not classed as a subsidy. Excluded properties Certain property types will not qualify, including:

• Shops, pharmacies, post offices or other retail premises
• Hotels, guesthouses, caravan parks
• Supermarkets and showrooms
• Financial and professional service providers (e.g., salons or accountancy firms)
• Sports centres, visitor attractions, clubhouses, halls
• Properties not reasonably accessible to the public or currently empty

How to apply Relief will be granted by local authorities on a pro-rata basis, depending on eligibility at different points during the year. More details on the guidance can be found here: Written Statement and Guidance Document. At Dunlop Heywood, we help hospitality businesses across the UK navigate the ever-changing business rates and relief schemes. If you think your business may be entitled to support under the new Welsh Government package - or if you’d like to review your current rating position - get in touch with our Business Rates team today. Contact Dunlop Heywood to ensure you don’t miss out on the relief your business is entitled to.