News of a 50 per cent business rates relief has been welcomed by UKHospitality Cymru as a boost for struggling hospitality businesses, although the trade body says that urgent additional support will be needed to avoid economic carnage in the sector.
Finance Minister Rebecca Evans today announced the relief for hospitality business in Wales, mirroring that previously announced in England.
David Chapman, UKHospitality Executive Director for Wales, said “This help was essential to help our businesses from April forward, when there will be a new raft of challenges to face, including VAT returning to 20 per cent VAT, higher National Insurance contributions and food, drink and energy inflation.”
“However, businesses are waiting with trepidation to hear later today what new restrictions they will have to endure from December 27. The sector faces economic carnage in the new year, after a vital Christmas season trading was dismantled by pessimistic messaging surrounding the new Omicron variant.
“We desperately need proportionate grant support to pull our businesses and workers out of huge debt and sub viable trading that we have endured for most of the past 21 months or so.”
Chapman added that substantial business rates reform must follow to address commercial inequities between hospitality and out-of-town and digital businesses.
“We have had a good dialogue with the Finance Minister and her colleagues, so we are hopeful that a fairer business rates solution can be found for our businesses, allowing them to concentrate on recovery and job creation” he said.