Business
Business Rates Relief cut ‘spells disaster’ for Welsh hospitality sector
THE ANNOUNCEMENT was made last year, but this week the reality kicked in.
The Business Rates Relief has been cut in Wales has kicked in and the hoped-for u-turn has not materialised.
The substantial reduction in business rates relief for hospitality firms has stirred significant concern amongst business owners and industry representatives across Wales.
Effective from 1 April 2024, the relief has been cut from 75% to 40%, accompanied by a 5% rise in rates. This decision is part of a broader strategy to redistribute financial resources to support essential services, particularly the health service, amidst ongoing fiscal pressures.
Finance Minister Rebecca Evans has acknowledged the difficulty of these decisions, emphasising the government’s commitment to managing a tight budget in challenging times. However, the reduction in support has sparked fears of financial strain and potential closures within the hospitality sector.
Industry Response
The announcement has been met with dismay by industry leaders, who warn of the competitive disadvantage Welsh businesses will now face. David Chapman, Executive Director of UKHospitality Cymru, highlighted the stark contrast with England, where businesses continue to benefit from the 75% relief. “This disparity will undoubtedly place Welsh businesses at a competitive disadvantage, particularly small businesses that will see their counterparts across the border enjoying frozen rates,” Chapman said.
A typical pub or restaurant in Wales is now expected to pay £6,400 more than one in England, a disparity that could have severe implications for the viability of many establishments.
Budget Cuts and Tourism
The reduction in business rates relief is not the only financial challenge facing the Welsh hospitality and tourism sectors. The Welsh Government’s budget for 2024/25 also includes a £16m cut in funding for tourism, culture, and sport. Given the strategic importance of tourism to Wales’ economy and cultural identity, this decision has been met with criticism. The sector, already facing intense economic challenges, views the cut as a significant setback that could undermine long-term confidence and investment.
Political and Community Reaction
Stephen Crabb MP, pictured here with restaurant owner Dan Mills, has been vocal in his efforts to highlight the challenges facing the hospitality sector, especially in regions like Pembrokeshire that rely heavily on tourism. Crabb has been engaging with local business owners, bringing attention to the sector’s struggles at both the local and national levels. “The upcoming season should be a time of optimism, but the reality is far different due to these financial challenges,” Crabb stated, emphasising the need for greater support to ensure the sector’s competitiveness and sustainability.
The Welsh Conservatives have strongly criticised the Welsh Government’s decision, with Andrew RT Davies MS, the party’s leader, and Tom Giffard MS, Shadow Minister for Tourism, both calling for a reevaluation of the relief cut. They argue that the reduction could be catastrophic for businesses already contending with the post-pandemic economic landscape, urging the government to maintain competitive rates relief.
Calls for Reconsideration
Amid growing concerns, FOR Cardiff, representing businesses within the city, has issued an open letter to the Minister for Finance, urging the Welsh Government to reconsider its approach to business rates relief. The organisation highlights the critical role of high street businesses in the everyday economy and warns of the potential for widespread closures without adequate support. Carolyn Brownell, FOR Cardiff’s Executive Director, called for a more gradual approach to tapering relief, suggesting that some of the government’s capital funds could be redirected to provide targeted support where it’s most needed.
Looking Forward
As the hospitality sector braces for the impact of these financial changes, the debate continues over the best path forward. Industry leaders, political figures, and community representatives are calling for a balanced approach that supports businesses through these challenging times while addressing the fiscal needs of the country.
The coming months will be crucial in determining the long-term effects of these decisions on Wales’ hospitality sector and broader economy.
How many pubs and restaurants will survive?
Business
Manorbier kennels expansion approved by National Park
PLANS for the expansion of a Pembrokeshire kennels business has been approved by the national park despite neighbour concerns about increased noise.
In an application to Pembrokeshire Coast National Park, Nick Willis sought permission for the expansion of an existing kennels/cattery business at Foxcombe House, near Manorbier, with 15 new kennels with dog runs, an office, grooming room, kitchen, and associated facilities.
Three members of the public had raised concerns about the scheme including potential noise nuisance with its expansion of the site, just off the A4139 Tenby to Jameston road.
An officer report said the proposals were an amendment to original plans which proposed an extension into the field adjacent to the A4139, currently used as a small caravan and motorhome campsite.
“Whilst the level of development remains as originally proposed and represents a significant intensification of built development, the proposed location, closer to existing facilities, is considered to better reflect an extension of the existing business rather than a separate part of the business,” the report said.
It added: “Correspondence has been received from three properties in the surrounding landscape, which raise concerns about noise nuisance from the existing kennels and indicate that there is likely to be an increase due to the proposed expansion of the kennel business.
“Officers have consulted directly with Pembrokeshire County Council Public Protection team, who confirmed that no formal noise complaints had been received regarding the existing kennel business.
“It is recognised that there is potential for both the existing business and the proposed expanded business to create a noise impact within the immediate surrounding landscape. However, the nearest properties are 103 metres to the southeast and 64 metres to the west.”
It went on to say: “The proposed business plan states that the existing kennels are soundproofed, and the proposed new kennels will also be soundproofed to limit any noise impact. Obviously, it is recognised that the dogs will not be in the kennels for their entire stay and will require access to the exercise areas daily. These areas are open and could lead to noise impact, but again, the use of the exercise areas will be limited and is considered a necessary part of the business, and is an essential element of the business to keep the animals healthy during their stays at the site.
“As such, given the limited nature of the essential exercise areas and that the proposed kennels are to be soundproofed, sufficient mitigation has been proposed in this instance to minimise any noise disturbance to neighbours.”
The application was conditionally approved by park planners.
Business
Popular extreme sport off Pembrokeshire coast to become licenced activity
COMMERCIAL coasteering activities in Pembrokeshire’s national park will need to be licensed at a cost of £100 from May following a decision by park members.
At the March 25 meeting of Pembrokeshire Coast National Park, members were recommended to agree the delegation of the introduction of a licensing scheme in relation to commercial coasteering operations on land owned or leased by the National Park Authority, subject to the satisfactory completion of associated environmental assessments for specific routes.
A report for members said: “The Authority has historically relied on a combination of voluntary codes of behaviour to guide the operation of a range of recreational activities in Pembrokeshire, including on land in which the Authority has an interest.
“This has operated successfully for many years, however changes in the number of providers operating over time and complaints raised in the last two years have highlighted the benefits of moving to a more formal arrangement through the issuing of licences for coasteering activity.
“The intention is to move to a system of licensing following the completion of environmental assessments for existing coasteering routes from May 1. Should any routes not pass the environmental assessments, they would not be included in such licensed arrangements.”
It added: “The change to licensing agreements between PCNPA directly with coasteering providers is a significant change in the proposed management of coasteering. The majority of coasteering in Pembrokeshire takes place on land owned or managed either by PCNPA or by the National Trust. Both organisations have historically worked historically together on this issue and the move to issuing licenses is supported by the National Trust as well as PCNPA Officers.”

It went on to say: “There is a recognised difference between general public access and commercial activity. Licensing will give a legal basis to the permission for providers to use Authority-owned/managed land which will ensure that the public benefit (special qualities, wildlife and conservation features) is not compromised by commercial activity. Coasteering with commercial groups has the potential for much greater risk of disturbance/environmental impact than individual public access on foot on public rights of way or beaches which is why it needs to be dealt with differently.”
It added: “A fee of £100 as a cost for the PCNPA Licence is being assigned for this year, which does not cover the costs of the environmental assessment work but is a contribution towards costs whilst the Authority transitions to these arrangements. Over the next few years, the intention is for the Authority to move towards a position of full cost recovery for this work.”
Members, by 10 votes to one against, and one abstention, backed the introduction of the licensing scheme for national park lands.
Business
Popular Italian restaurant hit with £278,000 tax bill plus £186,000 fine
The Carmarthen eatery is still open, but trading under a different legal entity after being put into liquidation
A CARMARTHEN Italian restaurant has been named by HM Revenue and Customs after deliberately underpaying more than a quarter of a million pounds in tax — with the company now in liquidation.
Claudio Cernat Ltd, formerly trading as Florentino’s on Jacksons Lane, appears on HMRC’s latest list of deliberate tax defaulters published on Wednesday (Mar 26).
The company failed to pay £278,561.67 in tax between April 2016 and March 2020. A further penalty of £185,977.52 was imposed.
Records held by Companies House show the firm is now in liquidation, having been incorporated in March 2015.

Largest west Wales case
The Carmarthen case is the most significant to emerge in West Wales from the latest HMRC “name and shame” list, both in terms of tax owed and penalties issued.
It stands in contrast to other Welsh entries, which are largely made up of smaller businesses and individual tradespeople owing tens of thousands rather than hundreds of thousands.
Who is running the restaurant?
Despite the liquidation of Claudio Cernat Ltd, Florentino’s restaurant in Carmarthen appears to still be operating, with bookings being taken through its website.
However, the website does not identify the company or individual currently running the business. Unless a sole trader, it is a legal requirement to have Limited company name on a business website.
The Herald contacted the restaurant by telephone on Thursday (Mar 26) to ask who currently operates the premises.
A female member of staff answered the phone as “Florentino’s” but declined to provide the name of the business employing her.
The call was then passed to a man who said the restaurant was under “new management” and “nothing to do with the old company”.
When asked to identify the business now operating Florentino’s, the man declined to give a company name or confirm the identity of the owners.
He gave his name only as “John” and said he would ask the new management to return the call “when they come in”.
Director linked to new company
Records show that Claudiu Florentin Cernat, a director associated with the former Carmarthen company, is now listed as a director of a separate business, Maximus Italian Ltd.
The Swansea-based company was incorporated in February 2025 and operates in the same sector — licensed restaurants.
There is no suggestion that the new company is involved in any wrongdoing.
Swansea cases also named
The list also includes three cases from the Swansea area.
Koyuncu Ltd, formerly trading as Pepino’s Pizza in Gorseinon, failed to pay £46,975 in tax, with a penalty of £28,185.
Lee Andrew Dunn, a mechanical fitter from Portmead, underpaid £29,326.20 and was issued a £17,449.06 penalty.
Christopher Lance Whitcombe, an engineer from Fforestfach, underpaid £54,598.69 and received a £46,596.84 penalty.
High street crackdown
Around 140 individuals and businesses across the UK have been named in the latest HMRC publication.
The list includes restaurants, takeaways, convenience stores and vape-related businesses, alongside self-employed trades, highlighting what HMRC says is ongoing non-compliance across high street sectors.
HMRC said all those named had the opportunity to avoid being listed by making a full disclosure during investigations, but failed to do so.
Kevin Hubbard, HMRC’s Director of Individuals and Small Business Compliance, said: “We are actively tackling tax non-compliance among high street businesses across the UK, and today’s namings show we will act wherever we find it.
“Everyone on this list had the opportunity to come forward to make a full disclosure — and didn’t. HMRC will always pursue those who deliberately refuse to pay what they owe.”
No businesses or individuals from Pembrokeshire or Ceredigion appear in the current list.
HMRC only publishes cases where more than £25,000 in tax has been deliberately underpaid. The list relates to civil penalties only, and names remain public for up to 12 months.
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