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Business

Business Rates Relief cut ‘spells disaster’ for Welsh hospitality sector

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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

St Davids GP surgery plans lodged with national park

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PLANS to convert a former GP surgery in Pembrokeshire’s only city to a home and holiday let have been lodged with the national park.

In an application to Pembrokeshire Coast National Park, Alice and Danjal Joensen, through agent Oochitecture, seek permission for a change of use of the ground floor of the former GP surgery, Eryl Mor, 36, New Street, St Davids, merging with the existing first-floor apartment to create a larger single dwelling house, along with the creation of an attached short-term holiday let.

The GP surgery is currently vacant, following its closure in October 2024 after new partners could not be secured.

A supporting statement says, prior to being a GP surgery, the two storey element was a single dwelling house.

It adds: “The house would consist of an open plan kitchen-living space to the ground floor, along with a study, lounge and utility room. The first floor includes four double bedrooms with ensuite and main bathroom.

“The new unit of accommodation would form a holiday-let with two double bedrooms, shower room, and an open plan kitchen-living space.

“The GP surgery is currently vacant, following its closure in October 2024 after new partners could not be secured, therefore the proposed change of use will provide a viable long-term future use for the property.”

It says minimal external alterations are proposed to the property with existing entrances utilised for both the main house and holiday-let, adding: “The existing concrete ramp to the front elevation will be retained with proposed works including extending the upper level and steps to provide a connection to the front door, allowing for accessible entrance to the property.

“There will be no changes to vehicular or pedestrian access, with the site continuing to be accessed via the existing entrance from New Street. Parking will be provided for the main house and holiday-let on the existing tarmac driveway off New Street.”

The application will be considered by Park planners at a later date.

 

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Business

Cardigan bakery named among best in UK

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A CARDIGAN bakehouse has been named among the best bakeries in the UK as interest in “bakery tourism” continues to rise.

Bara Menyn, a small family-run bakehouse tucked away in a side street in Cardigan, has been highlighted by travel experts at holidaycottages.co.uk as one of the bakeries worth making a trip for.

The name Bara Menyn means “bread and butter” in Welsh, and the bakery has built a reputation for imaginative bakes, pizzas and seasonal produce.

Laura Kerslake, regional expert for Wales, said: “Bara Menyn is how you say ‘bread and butter’ in Welsh and the name of the small family bakehouse that is hidden down a side street in Cardigan, West Wales.

“It’s open three days a week so that the owners can fit the bakehouse around family life and their careers as artists.

“The family’s artistic flair can be seen in all the imaginative fillings and toppings on the bakes and pizzas served, which are also made using local, seasonal produce.”

The listing comes as the UK sees growing interest in independent bakeries, with spending on bakery goods reported to have risen by six per cent from 2025 to 2026.

Research also suggests that many people are now willing to travel for regional food experiences, from traditional cakes to artisan bread and pastries.

Two other Welsh bakeries were also highlighted: Little Valley Bakery, which has sites in Mumbles and Brynmill, and was recently named in the Good Food Guide’s 50 Best Bakeries 2026; and another Welsh entry included in the travel company’s wider list.

For Cardigan, the recognition adds to the town’s growing reputation as a destination for independent food, drink and creative businesses.

 

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Business

In The Welsh Wind gin in running for world title

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A CEREDIGION distillery is celebrating after one of its gins was named among the best in the world.

In The Welsh Wind Distillery, based near Cardigan, has won gold and the Wales country title at the World Gin Awards 2026 for its Palo Cortado Cask-Aged Gin.

The matured gin has now been shortlisted for World’s Best Matured Gin, placing it in the top five internationally.

The overall winner will be announced at the World Gin Awards Gala Dinner in London on June 2.

The gin, priced at £45, is bottled at 43% ABV and is made by resting the distillery’s Signature Style Gin in Palo Cortado sherry barrels.

The result is described as a layered spirit with notes of almonds, dried stone fruit and wood spice, alongside the warmth of the gin’s botanical profile.

Palo Cortado is one of the rarest styles of sherry, produced in the Jerez region of southern Spain. It sits between Amontillado and Oloroso, combining nutty, oxidative character with a more elegant structure.

Ellen Wakelam, co-founder of In The Welsh Wind, said: “Palo Cortado is not a cask you choose lightly. It’s one of the rarest styles of sherry in the world and it does something quite specific to our Signature Style.

“It pulls out a depth and warmth that the gin already has in it and frames it in a way you wouldn’t expect. We’ve been incredibly proud of this gin since the first batch and to have that recognised at this level, and to be shortlisted for World’s Best, is something we’re genuinely thrilled about.”

The gin has previously won Best Welsh Matured at the World Gin Awards 2022 and received the Master award from The Spirits Business Gin Masters in 2021.

In The Welsh Wind is an independent craft distillery founded by Ellen Wakelam. It produces single malt whisky, blended Welsh malt whisky, gin and vodka, with a focus on Welsh provenance and cask maturation.

Palo Cortado Cask-Aged Gin: The Ceredigion-made gin is in the running to be named the world’s best matured gin.

 

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