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The Welsh government has unveiled an £8m support package for approximately 4,400 hospitality businesses, but hotels are still “left hanging out to dry” in an overcomplicated and bureaucratic rates system, according to Colliers.
Under the Non-Domestic Rates – Food and Drink Hospitality Rates Relief, the scheme provides 15% relief to pubs, restaurants, cafes, bars, and live music venues in 2026/27.
However, unlike the English scheme, which includes a three-year commitment and a freeze on rates, the Welsh relief is limited to a single year and is subject to a £110,000 cap per business.
The relief is also classified as a subsidy, making it subject to complex subsidy control regulations that do not apply to the English equivalent.
Furthermore, hotels, guest houses, caravan parks, and several other property types are ineligible for support.
This comes despite the 2026 revaluation showing that the hotel sector faces some of the steepest increases in rateable values across all industries.
John Webber, head of business rates at Colliers, said: “It is disappointing that hotels have been left out of any relief package since as a sector they are one of the biggest ‘losers’ from the 2026 revaluation. The capping of the relief and subjection to subsidy control also means only smaller operators will benefit as opposed to bigger chains.
“The whole thing is a bureaucratic and complicated mess. We now have 13 different multipliers in England and Wales alone. This is not good for UK business and certainly not the growth agenda.”
