Around 130 businesses in Ceredigion will benefit from a business rate relief scheme for food and drink hospitality, saving around £170,000, a county council report has said.

Ceredigion County Council Cabinet members will receive a report on 3 March on the impact of the Welsh Government’s Food and Drink Hospitality Rates Relief (FDHRR) Scheme for 2026-27.

The Welsh Government announced additional business rates support for pubs, restaurants, cafes, bars and live music venues in Wales in early February after warnings from trade organisations that the removal of a business rate relief scheme in the Welsh Government’s budget for 2026/27 would “sound the death knell for more pubs” and be a “disaster” for the hospitality sector in Wales.

In its final budget, the Welsh Government announced measures including the removal of the 40 per cent Retail, Hospitality and Leisure Relief first introduced during the Covid pandemic.

The removal of the relief meant businesses faced an immediate business rate hike from April.

The plan drew the ire of CAMRA and UKHospitality Cymru who both warned that more pubs and restaurants could fold without support.

The Welsh Government then announced an extra £8m funding package that will see around 4,400 hospitality businesses eligible for 15 per cent relief on their rates bills in 2026-27, to “help them through a period of rising costs and changing consumer habits.”

The 2026-27 FDHRR scheme will apply to all eligible businesses, subject to a cap on the amount each business can claim across Wales.

The total amount of relief available is £110,000 across all properties occupied by the same business.

All businesses are required to make a declaration that the amount of relief they are seeking across Wales does not exceed this cap, when applying to individual local authorities.

In the report to be put before Cabinet members, said: “All eligible businesses will be required to apply for the 2026-27 FDHRR by 31 March 2027.

“The Revenues Section will contact businesses that, according to our records, appear to meet the qualifying criteria and invite them to submit an application.

“Guidance and the application form will also be published on the Ceredigion website and periodic social media communications will be issued to encourage any eligible businesses that have not yet applied to do so.

“The scheme, which is fully funded by Welsh Government, will provide support to approximately 133 businesses across Ceredigion, with an estimated total value of £170,000.

“Funding for the administrative costs of delivering the scheme will be provided to local authorities.”

Cabinet members will be asked to adopt into the scheme with the report warning that “failure to adopt the scheme will mean Ceredigion eligible ratepayers being financially disadvantaged and Welsh Government withdrawing their funding.”

Finance Secretary Mark Drakeford said: "Pubs, restaurants, cafes, bars, and live music venues are at the heart of communities across Wales.

“We know they are facing real pressures, from rising costs to changing consumer habits.

“This additional support will help around 4,400 businesses as they adapt to these challenges.”