Calls grow for Welsh Government to match support offered to English venues

THE WELSH LIBERAL DEMOCRATS have urged the Welsh Government to review its business rates policy, warning that scaling back support for pubs and hospitality risks further closures across towns and villages.

Party leader Jane Dodds, who represents Mid and West Wales in the Senedd Cymru, said ministers should act quickly to protect local venues after additional support for pubs and music venues was announced for England by the UK Government.

The measures announced by the Chancellor do not automatically apply in Wales, leaving uncertainty over whether similar help will be introduced here.

Hospitality businesses across Pembrokeshire and Carmarthenshire have already reported rising energy bills, higher wage costs and reduced footfall since the pandemic. From April, current business rates relief is expected to be reduced, a move the Liberal Democrats say could place Welsh firms at a disadvantage compared with competitors over the border.

Dodds said that pubs, cafés and restaurants form “the heart of our communities” and warned that withdrawing relief now would be “a serious mistake”.

She told the Senedd that support “cannot stop at pubs alone” and should extend to the wider hospitality sector, including restaurants and family venues that rely heavily on seasonal trade and tourism.

“When questioned, the First Minister said she needed to examine the details of the English package before committing to anything similar for Wales,” Dodds said. “Without urgent action, we risk losing viable, well-loved businesses that communities simply cannot afford to lose.”

The party is also calling for UK-wide action, including a temporary reduction in VAT for hospitality and tourism, funded by a windfall tax on large banks.

However, Welsh Government sources have previously argued that decisions on rates relief must be balanced against pressures on public finances, with ministers required to prioritise health, education and other frontline services within a fixed budget. They have said any additional support would need to be affordable and targeted.

Industry bodies have echoed concerns about the challenges facing the sector. Trade groups say many independent pubs and cafés continue to operate on tight margins, particularly in rural areas where they serve as community hubs as well as businesses.

Local operators say clarity is now key, with decisions on staffing, stock and opening hours often planned months in advance.

With the next financial year approaching, hospitality owners will be watching closely to see whether Wales mirrors England’s support – or leaves businesses to absorb the extra costs alone.