Welsh pubs and bars to get further rates support

The Welsh government has announced an £8m additional support package for approximately 4,400 hospitality businesses under the 'Non-Domestic Rates - Food and Drink Hospitality Rates Relief for 2026/27'.

This follows the 15% pub and live music venue relief announced for England at the end of last month.

Unlike in England, the Welsh government has extended the package to provide support to more hospitality businesses such as restaurants and cafes, properties which are being used 'wholly or mainly' for the sale of food and/or drink to visiting members of the public. Hotels, however, are not considered eligible for relief.

As such they have announced that 15% relief will be provided to pubs, restaurants, cafes, bars and live music venues in 2026/27. 

However unlike in England, this Wales relief is limited to 2026/27. Nor has the Welsh Government stated that business rates will be frozen for 2027/28 or 2028/29.

Relief will also be capped at £110,000 per business (including subsidiaries) across Wales. Colliers has said that the government has advised that the relief is 'likely to be a subsidy' and thus operators can assume will be subject to subsidy control as previous RHL relief has been. This differs to the scheme in England, which has expressly stated it is not capped nor subject to subsidy control.

"It is interesting that Wales has followed a different path to England, where only pubs and live venues are to receive relief, and we welcome the broader approach," says John Webber, head of business rates at Colliers. "However, we query why reliefs will only apply to this next year, when it is in year two and three of the list that businesses will face the most pain.

"Pubs and restaurants either side of the border could therefore be receiving very different relief support in the years to come. The capping of the relief and subjection to subsidy control also means only the smaller operators will benefit as opposed to the bigger chains.

"Yet again, 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 with rateable values increasing more than any other sector."

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