Industry leaders warn of closures and job losses as pressure mounts on ministers to pass on funding

PUBS across Wales are facing a widening financial gap with England after the UK Government announced increased business rates support south of the border, prompting renewed calls for the Senedd to intervene to protect a sector described as a social lifeline for communities.

The warning came from the Welsh Beer & Pub Association (WBPA) following the Chancellor’s announcement of enhanced business rates relief for pubs in England — a move the industry says will deepen an already significant disparity between the two nations.

The WBPA said that while Welsh pubs benefited from Covid-era support, more recent measures have failed to keep pace with England, leaving many operators struggling to cope with rising costs and higher rates bills.

A spokesperson for the association said the exclusion of pubs from newer retail-focused relief schemes is already having a damaging impact across Wales.

“Without further action, many pubs will struggle to keep their doors open,” the spokesperson said, warning of further closures, job losses and the erosion of vital community spaces.

Growing concern among Welsh businesses

Concerns over business rates have also been echoed directly by Welsh businesses themselves, with more than 100 companies attending a recent meeting organised by Sam Kurtz MS to discuss the impact of revaluation and the future of business rates support in Wales.

The meeting brought together pubs, hospitality operators, tourism businesses and other small firms, many of whom warned they were facing sharp increases in their rates bills and feared the changes could make their businesses unviable.

Mr Kurtz told the Senedd that business owners were “worried, frustrated and angry,” with some reporting potential increases running into tens of thousands of pounds.

He said the strength of feeling at the meeting showed the scale of concern across the Welsh economy and urged ministers to act before irreversible damage is done to local businesses and high streets.

Political pressure inside the Senedd

The issue has been raised repeatedly in the Senedd in the run-up to this week’s budget debates, with opposition members warning that Welsh pubs are being placed at a competitive disadvantage compared with those in England.

Conservative MSs have highlighted the risks to tourism and hospitality in rural and coastal areas, while Plaid Cymru has pressed ministers to confirm whether any additional funding flowing to Wales as a result of UK Government decisions will be passed directly to support community pubs.

During recent plenary sessions, the First Minister acknowledged the importance of pubs to Welsh communities but defended the Welsh Government’s record, pointing to more than £1bn spent on business rates support for retail, leisure and hospitality businesses since 2020.

Ministers have said they are still assessing the full details of the UK Government’s announcement and its financial implications for Wales before setting out a response.

Budget reforms and industry warnings

The debate comes against the backdrop of wider changes to the non-domestic rates system in Wales as part of the Welsh Government’s final budget plans.

While ministers argue that reforms such as adjusted multipliers and transitional relief will help smooth the impact of revaluation, hospitality groups say pubs are not receiving the targeted protection they need.

Industry bodies warn that Welsh pubs were already facing significantly higher business rates bills than counterparts in England, and that the latest English relief package will now widen that gap further.

The WBPA said the Senedd will receive additional funding as a result of the UK Government’s decision and urged ministers to ensure it is passed on in full — and enhanced — to protect pubs, jobs and local economies.

A test of priorities

The association said the issue now represents a clear test of priorities for the Welsh Government.

“Pubs are central to Wales’s social and economic fabric,” the spokesperson said. “If this funding is not passed on, we risk losing businesses that communities rely on and livelihoods that cannot easily be replaced.”

With budget decisions imminent, pressure is mounting on ministers to match — or exceed — the support being offered in England, as the future of many Welsh pubs hangs in the balance.

LOCAL Senedd Member Samuel Kurtz has called on LINK to hold a face-to-face meeting in Pembroke Dock to discuss the forthcoming review of the decision that the town does not qualify for a Banking Hub.

With the 12-month review window now approaching, Mr Kurtz says it is vital that LINK hears directly from residents, businesses and community groups who have been affected by the loss of the town’s final bank branch.

Pembroke Dock has been without any in-person banking services since the closure of its last bank, a situation campaigners say has had a significant impact on older residents, vulnerable people and small businesses who rely on face-to-face support and access to cash.

Under LINK’s current rules, once an assessment has been carried out, a further review cannot normally take place for 12 months unless there has been a significant change in local cash access provision. That review period is now nearing its end, allowing a formal reassessment request to be made.

Mr Kurtz has been leading efforts over the past year to build the case for a Banking Hub, including writing to the Financial Conduct Authority and HM Treasury on the national framework governing access to cash, and raising concerns with the Welsh Government and the Older People’s Commissioner for Wales.

More than 1,500 residents and businesses have now signed a petition backing the call for a Banking Hub, a level of support Mr Kurtz says demonstrates the strength of feeling locally.

“Pembroke Dock has lost its last bank, and that has changed everyday life for many people,” Samuel Kurtz said. “Not everyone can bank online or travel to Carmarthen when there’s a problem. A face-to-face meeting in the community would allow LINK to hear first-hand how this decision is affecting real people.”

He added that holding the meeting locally would help ensure transparency and build confidence in the review process.

“This is about giving the community a fair hearing. If LINK is going to reassess its decision, it should do so with a clear understanding of local needs, and that means listening directly to those impacted. The last review was undertaken as a desk-based exercise and I’m asking LINK to come and visit to see for themselves the geography of South Pembrokeshire and understand that it is the wider community, and not just Pembroke Dock, that would use this facility.” he said.

Samuel Kurtz has written to LINK formally requesting that representatives attend a community meeting in Pembroke Dock ahead of the review.

Campaigners say they will continue to gather evidence and community support in the run-up to the reassessment and remain confident that Pembroke Dock meets the criteria and intent of the Banking Hub scheme. More information and the online petition are available at www.samuelkurtz.wales.

LOCAL businesses from across West Wales have voiced serious concerns about the impact of business rates at a dedicated roundtable hosted by Senedd Members Samuel Kurtz MS and Paul Davies MS.

The online Business Rates Forum brought together businesses from the hospitality, retail and leisure sectors, alongside representatives from UK Hospitality, the British Beer and Pub Association (BBPA), PASC UK and the Federation of Small Businesses. Officials from the Welsh Government and the Valuation Office Agency (VOA) also took part.

The forum was convened in response to the forthcoming business rates revaluation in Wales, due to come into force on 1 April 2026. It gave businesses the opportunity to speak directly to policymakers and officials about the pressures facing high streets and employers across West Wales, including rising costs, changing consumer behaviour and ongoing economic uncertainty.

Since December, Samuel Kurtz MS has been examining the likely impact of the revaluation on small businesses in Pembrokeshire, an issue that has attracted significant attention. The move to update rateable values in line with current property market conditions has left some businesses facing substantial increases in their business rates.

Participants heard from the Valuation Office Agency, including Nicola Broadbent, Head of Non-Domestic Revaluation Delivery, who explained how business rates are calculated in Wales, the reasons for the revaluation and how the checks, challenges and appeals process operates. Key differences between the Welsh system and arrangements in England were also outlined.

Industry representatives from UK Hospitality, the BBPA and PASC UK set out what the new rateable values could mean for businesses from April 2026, with a particular focus on small businesses and the hospitality and tourism sectors. Practical examples were shared, alongside common issues being raised by businesses across West Wales.

Welsh Government officials addressed the forum on the reliefs and transitional support currently available, while businesses questioned whether existing schemes go far enough to protect employers facing sharp increases in their rates bills.

A wide-ranging question and answer session followed, during which businesses spoke candidly about the challenges they face, warning that higher business rates could put jobs, investment and long-term viability at risk.

The forum concluded with closing remarks from Paul Davies MS and Samuel Kurtz MS, who committed to ensuring that the concerns raised would inform ongoing representations to the Welsh Government. The Members of the Senedd have arranged dedicated business surgeries and circulated a Business Impact Form to gather further evidence in support of reform. The form is available at: https://www.samuelkurtz.wales/campaigns/business-owners.

Commenting after the forum, Samuel Kurtz MS said:
“Businesses in West Wales are at a cliff edge. That is the clear message we are hearing. Employers are telling us that the current business rates system is placing real strain on high streets at a time when they are already dealing with rising staffing, energy and supply costs. It is vital that the Welsh Government listens to those on the ground who take the risks, provide the jobs and drive the local economy. Policy should encourage investment and growth, not penalise it.”

Paul Davies MS added:
“This forum provided an important opportunity to bring businesses, industry bodies and government officials together for an honest discussion about the pressures facing our local economies. Many firms are already navigating rising costs and uncertainty, and sudden increases in business rates could be the final straw. We need a system that reflects economic reality and supports the small and medium-sized businesses at the heart of our communities.”