Struggling to Survive: Our Fight to Hold On

The Welsh hospitality sector is bracing for significant changes as new business rates are set to take effect from April 1, 2026. Pubs that currently pay £5,000 in business rates could see their bills surge to £6,500, marking an increase of up to 30% as property values are re-evaluated by the Welsh Government.

Struggling to Survive: Our Fight to Hold On

The prospect of rising expenses has left many pubs feeling the pressure. Operators have stated they are “just desperately trying to hold on” amid these proposed changes. The Welsh Government has introduced a relief scheme to mitigate this impact, allowing businesses to phase in the increased costs over several years. In the 2026–27 fiscal year, pubs will cover one-third of the increase. This will rise to two-thirds in 2027–28 and the full amount in 2028–29.

Financial Relief for Pubs

• 15% relief on business rates for approximately 4,400 hospitality businesses.
• Total funding of £8 million provided by the Welsh Government.
• Support extended to restaurants, cafes, and live music venues.

Finance Secretary Mark Drakeford emphasized the importance of supporting these community-centered businesses. He mentioned, “Pubs, restaurants, cafes, bars, and live music venues are at the heart of communities across Wales.” This initiative builds on over £1 billion in temporary rates relief provided since 2020.

Local Voices: The Impact of Rising Costs

Local pub managers have shared their experiences. Gemma Blanks, manager of The Ship Inn in Caerleon, reported a weekly operational cost increase from £1,500 to £2,000. She highlighted the struggles due to rising prices and the limitations imposed by their brewery ownership. “It is a massive struggle, and we are just desperately trying to hold on,” she stated.

Ryan Edwards from the Queen Inn in Cwmbran echoed similar sentiments. He referred to the business rates increase as “devastating” for local pubs. “Our unavoidable outgoings are increasing even faster than our customer base,” he said, urging for more substantial government support.

Successful Businesses Face Challenges

Even recognized establishments like Butterflies Bar & Kitchen in Blaenavon are not immune. Awarded the title of Best Restaurant in Wales for two consecutive years, the pub faces a striking 366% rise in business rates, potentially leading to an additional annual cost of £28,000 without relief.

The owners expressed that such an increase would halt their expansion plans and ultimately harm the hospitality sector. They called for urgent reforms from the Labour government, highlighting the unsustainable future without significant change.

As pubs across Wales confront these challenges, the overarching sentiment is one of concern for their survival. With the new rates looming, community hubs may face an uncertain future unless further support is provided.