BUSINESS rates fears in west Wales reached the Senedd this week after Samuel Kurtz MS warned that hospitality and tourism firms could face “irreversible damage” unless ministers rethink the approach to the 2026 revaluation.

During First Minister’s Questions on Tuesday (Jan 20), the Conservative MS said he and Preseli Pembrokeshire MS Paul Davies would be hosting a business briefing for “over 100 businesses from across west Wales” who were “worried, frustrated and angry” about looming increases.

He told the Senedd one local hotel faced its rates bill rising from “£10,000 to £33,000” — an increase of “230 per cent” — and urged the First Minister to “change course on this immediately, before irreversible damage is done to the hospitality sector”.

The intervention is the clearest sign yet that concern over steep projected increases — particularly among hotels, pubs, restaurants and visitor attractions — is turning into an organised campaign, with businesses swapping draft figures and warning of closures and job losses if the biggest rises go ahead.

Responding, First Minister Eluned Morgan defended the Welsh Government’s record of support for the sector.

She said: “It is wrong to claim that we have not supported hospitality. We have spent over £1 billion since 2020 on business rate support for retail, leisure and hospitality.”

She added: “After April, at least half of pubs will get help with rates and a quarter will pay no rates at all.”

The First Minister also signalled that she could not commit to matching decisions made in England until the Welsh Government had full detail of what was being offered there and what funding consequentials might follow for Wales.

Pembrokeshire concerns fed into wider backlash

In Pembrokeshire, the issue first gained traction after county councillor Huw Murphy raised alarm about the scale of increases some firms were seeing in draft figures ahead of April 2026.

Since then, local businesses have reported proposed rises well into three figures in percentage terms — often in areas where footfall and seasonal trade are already fragile — with owners warning that higher overheads will squeeze budgets for staffing, maintenance and investment.

While some premises are expected to benefit from reductions, the sharpest increases appear concentrated in parts of the visitor economy, where rateable values can rise quickly in line with market evidence and local demand.

Mr Kurtz’s briefing is expected to focus on how the new figures are calculated, what scope there is for appeals, and what further relief—if any—might be needed for firms facing the largest jumps.

With attendance already said to be over 100, the meeting is also likely to act as a barometer of how far concern has spread across west Wales—and whether pressure will build on ministers to revisit support for hospitality, leisure and tourism businesses ahead of April.

The online event, taking place on Monday 26 January 2026 at 10:30am, will bring together key organisations involved in business rates and the local economy, including the Valuation Office Agency (VOA), UK Hospitality, the British Beer & Pub Association (BBPA), PASC, Welsh Government and Pembrokeshire County Council (PCC).

The forum is designed to help businesses better understand how business rates are calculated, how recent changes to rateable values may affect their bills, what reliefs may be available, and how to check and challenge valuations where appropriate.

For many firms, the rates issue is landing alongside wider cost pressures, with business groups warning that even a small number of forced closures could ripple outward—reducing local employment, weakening town centres and undermining the rural tourism offer.

Commenting on the strong response, Samuel Kurtz MS said: “The fact that more than 100 businesses have signed up shows just how much concern there is locally about business rates. By bringing together the VOA, industry bodies and the local authority, businesses will be able to get clear, reliable information directly from those involved in the system.”

Businesses from across retail, hospitality, services and the rural economy have registered, highlighting the wide-ranging impact of business rates on the local area.

“Too many businesses only discover there is an issue when their bill arrives,” Samuel Kurtz MS added. “This forum is about helping businesses check their rateable value early, understand what support is available, and take action if something does not look right.”

Paul Davies MS said: “Business rates continue to place real pressure on shops, pubs, hospitality venues, tourism businesses and small employers across Pembrokeshire and the wider region. This online forum is a practical step to help businesses better understand the system and ensure they are not paying more than they should. It also underlines the importance of reforming business rates so they are fair, transparent and do not hold back local growth.”

What is the 2026 revaluation?

NON-domestic rates are calculated using a property’s “rateable value”, which is reassessed periodically in a revaluation.

The new values linked to the 2026 revaluation are due to take effect from April 2026, meaning some businesses will see bills rise while others fall.

If a business believes its valuation is inaccurate, it can challenge it through the Valuation Office Agency process, but firms are being urged to act early and gather evidence—such as comparable rents, trading impacts and property details—before formal deadlines.

Reliefs can also apply, including small business relief and sector-specific support, depending on the size and type of premises.